Southern America has it all, from long stretches of scenic highway to busy urban traffic. If you’re stuck in a jam and need insurance, you came to the right place. Don’t let the Peach State’s insurance laws confuse you. Here’s everything you want to know about liability insurance in GA.
Georgia’s Liability Insurance Requirements
The purpose of automobile liability insurance is to protect your personal finances after an at-fault accident. Georgia law says that you’re responsible for the associated cost when you injure someone or damage their car in a crash. Some types of coverages are optional, like comprehensive and collision, and some are not.
According to GEICO, Georgia requires that you maintain minimum levels of auto insurance on your vehicle to drive on public roads and highways. You must show proof of bodily injury liability protection ($25,000 a person, plus $50,000 each accident) and property damage liability coverage ($25,000 per accident).
Optionally, you can also add uninsured motorist coverage. This type of insurance protects you when you’re in an accident if it wasn’t your fault and the other driver doesn’t have a liability policy. Look for the same minimum bodily injury limits per person and accident and uninsured motorist property damage minimums as Georgia mandates.
How Insurance Companies Set Rates in Georgia
Georgia’s insurance commissioner’s office wants to help you understand liability insurance basics and avoid confusion, like how insurance providers set rates. First, companies assess how likely you are to file a claim. Then they assign a rating based on how much it will cost to pay for that claim.
Auto insurance carriers use factors like your age, credit score, and driving history to set your policy’s final annual price. Providers may also consider where you live, whether it’s a large city like Atlanta or the charming mountain town of Blue Ridge.
Gender, age, and marital status lend to your perceived responsibility level. For example, a married, 45-year-old woman will pay much less than a 16-year-old, newly licensed young man. Prior insurance coverage and the make and model of your vehicle are other common factors that affect the price you pay for your liability insurance in Georgia.
Cheapest Liability Insurance Policies in Georgia
The economics experts analyzed the data and came up with the most budget-friendly liability insurance policies in the Peach State. Vehicle coverage is important, but finding cheap car insurance in Georgia isn’t always easy.
If you want to purchase minimum coverage, expect to pay $719 per year on average. It is possible to find a less costly policy. For example, Auto-Owners Insurance offers Georgia residents the lowest rate: just $301 a year for the average experienced driver with no tickets or accidents.
The Cheapest Car Insurance Rates in Atlanta
We already discussed various rating factors insurance companies use to determine your rate, and those drivers that live in Atlanta can expect to pay more, reports Bankrate. Of course, you’ll want to shop around and review multiple quotes. However, a 35-year-old with a clean driving record and good credit can expect to pay 17% more than the state’s average.
Georgia Insurance Rates by Company
Coverage rates vary by the company, too, even for the same liability insurance policy. So don’t assume you’ll pay the premium to every provider, like industry giant State Farm. Drivers can purchase protection with minimum state-required coverage for just $486 a year. However, customers have to join Georgia Farm Bureau to get coverage. With an annual membership cost of just $35 a year, it might be worth it to some customers.
Auto-Owners Insurance is another budget-friendly local insurer. Its rates average $532 annually. Southern General Agency has some of the state’s highest rates, at $3,354 for liability insurance and $6,717 for a full coverage policy.
Liability Insurance Cost by Age in Georgia
Georgia’s car insurance rates also vary by age. According to Bankrate, younger and inexperienced drivers are more likely to get into an accident. If you fall between 16 and 25 years, you’ll pay more than you will when you reach the age of 30, assuming you don’t have any traffic violations by then.
Rates generally decrease as we age. At 16 on your parent’s policy, Bankrate says the average Georgia teen will pay $3,007 a year. At 22, you’re likely out on your own, and without a parent’s policy, your average annual rate skyrockets to $3,385. It will drop again by the time you’re 40, hopefully as low as the average of $2,092 for a 12-month term.
Companies also rate your age difference. Farm Bureau insures young Georgia drivers for relatively affordable rates. Its average annual quote is $1,852 for minimum coverage, while Progressive charges more than double that price at $4,473. USAA offers the best premiums for teens with a speeding ticket if you qualify. This insurer bills its eligible members in Georgia just $1,525 a year.
Physical Damage Insurance for Georgia Drivers
Georgia’s lawmakers do not require drivers to buy physical damage insurance. However, if you financed or leased your new vehicle, your bank might. You’ll want to add this type of coverage if you want your policy to pay for loss or damage to your own car.
Even if someone else caused an accident, you can file a claim under your own policy. There are two types of physical damage insurance: comprehensive and collision. Together, these products cover losses like theft, vandalism, and hitting a tree because there could be vehicle body damage you can’t see.
The average cost of a full coverage policy for Georgians is $1,715 per year. A minimum liability policy will only cover injuries to others. It won’t protect you and your property if you’re at fault. If you don’t need the optional comprehensive and collision protection, you can save yourself about $143 per month on average without it.
With rising health care and auto repair costs and higher limits, Georgia’s liability insurance will better protect your financial interests. Be sure to discuss all your options with your licensed agent if you’re unsure which coverage levels are best for you.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.