What should I know about car insurance?

Contents

• What are my rights with car insurance?
• What are my responsibilities with car insurance?

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What are my rights with car insurance?

A person who purchases insurance coverage has the right to choose, to some extent, the type of coverage and the amount of coverage they want. Types of coverage include the following:

• Liability: coverage that pays damages to other parties for: 

  • injuries or 

  • property loss when you are at fault;

• Comprehensive: coverage that pays for damages to your car when the damage is not from a collision;

• Collision: coverage that pays for damage resulting from a crash even if you are at fault; and

• Uninsured motorist coverage: coverage that protects you from loss in an accident where the other driver is at fault and is uninsured.

In Georgia, you are only required to carry liability insurance. If you get a car loan, most lenders will require you to have comprehensive insurance coverage.

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What are my responsibilities with car insurance?

You have responsibilities with car insurance:

• You must have insurance on a vehicle. Every person who drives a vehicle in the state of Georgia is required to have liability insurance. You must have insurance for as long as the vehicle is actively registered. The purpose is to protect people who travel on the public roads. In this way, if they are involved in an accident, they can be compensated for their loss. 

• You must have proof of insurance. Your insurance company must file your insurance policy with the Department of Revenue’s database. An insurance card is not acceptable proof of insurance. You can check your coverage using DRIVES e-Services Registration and Insurance Status.

• You must have continuous coverage. You are responsible for maintaining continuous liability on registered vehicles. If you lose insurance coverage, you must find a new policy within 10 days. If you do not get insurance within 10 days, this is considered a lapse in coverage. If you have a lapse in coverage, you will:

  • Receive a notice from the Department of Revenue telling you that you must reinstate your policy.

  • Get a reinstatement fine of $25.

  • Have your car’s registration suspended if you do not pay your lapse fine within 30 days. You will also incur an additional fine of up to $160. 

 

You will not be able to renew or reinstate your registration if you have not paid fines and updated your insurance coverage.

 

Your record will be updated if:

• your insurance company sends the Department of Revenue information about your new coverage within 30 days, and 
• there was no lapse. 

 

• You are responsible for understanding your insurance policy. Most insurance policies cover not only the main owner or driver of the vehicle but also "insured persons." Insured persons include relatives who live in the same household and those given permission to use the vehicle. However, most insurance companies want to know the names of all persons who may drive the car. In some instances, the insurance company will attempt to exclude a particular person, like a teenager. It is therefore very important to read the insurance policy to see if anybody or anything in particular is excluded from coverage.

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Contents

• How can I purchase car insurance?
• What can I do about insurance if I sell my car or if it no longer works?

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How can I purchase car insurance?

If you own or operate an automobile, you must purchase insurance. There are many insurance companies doing business in Georgia. The rates they charge vary. The rates depend on factors such as the applicant's age, sex, marital status, and driving history. They also vary with the type of motor vehicle to be insured.

• Rates for younger persons, particularly those under 21 years, are higher than for the general population. They are higher for young men than for young women; studies have shown that men in this age bracket cause more accidents than do women. There is evidence, however, that some young people are more likely than other drivers to be safe. Therefore some insurance companies reduce rates somewhat for young drivers who have: 

  • taken driver's education courses or 

  • who make good grades. 

• The dollar amounts of coverage will also affect the rates charged. A person may elect to have a large amount of coverage, but the insurance costs will be high, too. The type of coverage also will affect the cost. A person may choose to have full coverage, but such a policy would cost more than one with just the required liability coverage.

• The amount of the deductible will also affect the rates charged. A car insurance deductible is the amount you have to pay toward repairs before your insurance covers the remaining repair cost. The higher the deductible you choose the lower the insurance rate will be. In other words, an insurance with a $1000 deductible will be cheaper than one with a $500 deductible.  For example, if you are repairing a broken window and it costs $200 to repair, but your deductible is $500, you will pay out-of-pocket for that repair.

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What can I do about insurance if I sell my car or if it no longer works?

You must have insurance on any car that has a current registration. You should cancel your registration BEFORE you cancel your insurance coverage if:

• you sell your car, 

• it is no longer being driven, or 

• if it is no longer operable. 

If you cancel your insurance first, you may get a fine.

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