Should You Carry Comprehensive Auto Insurance In Georgia?
Reader question:
Should I add comprehensive and collision coverage to my Georgia auto insurance policy? What is it anyway?
Gloria
Thank you for your question, Gloria.
Whether or not you add comprehensive and collision coverage to your Georgia auto insurance policy should depend on several factors. Before we cover those, though, let’s first look at what comprehensive and collision coverage are.
- Comprehensive coverage is…
Comprehensive coverage is the kind of coverage that takes care of damages that result from things that aren’t automobile accidents. For example, if you were living in New Orleans at the time of Hurricane Katrina, then any flood damage caused to your car would fall under your comprehensive coverage. This is because comprehensive coverage takes care of damage resulting from natural disasters.
It also takes care of damage that results from criminal activity. For example, if your car is stolen, then it will be replaced if you have comprehensive coverage. If your car is vandalized, then it will be repaired under your comprehensive coverage portion of your insurance policy.
- Collision coverage is…
Collision coverage is like property damage liability, except that instead of being for the person on the other end of your auto insurance accident, collision coverage takes care of damage caused to your own vehicle. This includes repairs if your vehicle is simply damaged, and the actual cash value if your vehicle is totaled.
Collision coverage also applies when you get into an accident that involves your own property. If you’re parked backwards in your driveway, say, and you put your car in reverse instead of drive by accident, and as a result back into your garage, then the damage to your garage and your car will be covered by your collision coverage.
- Why you need them (or don’t)…
Collision and comprehensive coverage can be very useful when you get into an accident or have your car stolen, but not every vehicle needs it. One of the quickest ways to cut the costs on your insurance premium is to drop your extra coverage, after all.
If you have a car that is old and not worth more than a thousand dollars, then you do not need comprehensive and collision auto insurance coverage. You will end up paying more for the coverage than your car is actually worth, and there’s no point in that.
If you are still buying a car, then you are probably required to have comprehensive and collision coverage. If you don’t, then you could end up paying for a vehicle that you no longer have if your car ends up totaled.
Cheers,
Fashun Guadarrama.
What Is The Minimum Required Auto Insurance in Georgia?
If you want to get auto insurance in Georgia, then you are required to follow the law and get the proper amount of coverage. If you don’t want to get auto insurance, then you’re out of luck, because you have to. End of story. Most car insurance companies will sale you the simple minimum liability of auto insurance if you go in and request nothing more than to be insured, but you still ought to understand what is required and why, and why you should take a step beyond that.
To meet the minimum requirements for auto insurance in Georgia, you are required to have liability coverage. This type of coverage will take care of medical costs and property damage for the person to whom you cause damage in an accident which is your fault. You have to have:
- $25,000 of bodily injury coverage for each individual
- $50,000 cap for each accident if there is more than one person
- $25,000 for damage to property, such as a vehicle or a fence
These are the required amounts, but most companies that sell auto insurance in Georgia suggest that you stack on a little more than this amount of insurance, and the most commonly suggested amount is 100/300/100. You should remember when buying liability coverage for bodily injury that the two amounts do not combine. If you have fifty thousand of coverage for more than one person, then that is all that you get for a single accident, even if four people are injured. If only one person is injure, all they get is twenty five thousand. Considering the cost of medical bills in bad accidents, it makes sense to get more than that amount.
You need to have auto insurance, because the Georgia department of insurance can tell when you don’t. As a matter of fact, they have an online insurance verification system that keeps track of the insured and uninsured in the state. You can check your own status online to make sure that there aren’t any mistakes, although if you have only recently gotten a policy you should let a month pass before checking because it takes time.
If you go without auto insurance for 10 days or more, then your registration could be suspended. You would then have to pay $85 to restore. And although your auto insurance can be verified online, you should still carry an insurance card in your vehicle for when you get pulled over.
If you want to lower your annual premiums, try raising your deductible amount to something like $1,000 or more. You only pay when you file a claim with your insurance carrier and the savings over the long term could be substantial.
What Determines Your Auto Insurance Rate in Georgia?
Reader question:
How do car insurance companies determine my auto insurance rate here in Georgia?
Paul
Thank you for your question, Paul.
There are so many factors that go into a single Georgia auto insurance quote, that I can’t even begin to address them all in a single post. A few decades ago, the factors could be counted on the fingers of one hand, but each year the process grows more complex. What I can do, though, is tell you about one thing that auto insurance companies look at to determine your insurance rates.
- Your CLUE report.
The majority of policy holders don’t have anything on their CLUE report, and this is mostly because the information only remains there for ten years. Unlike credit, which most of society uses constantly, the average insurance claim is filed only every half a decade or so.
The CLUE report is not connected to you yourself, but, much like your auto insurance policy, is connected to your vehicle. The CLUE report will have information on any past claims and repairs, and when you get a new car you can purchase a copy of your CLUE report from ChoicePoint. Since it does affect your insurance premium, it is probably a good idea to buy a CLUE report before you finalize the purchase of your car.
Like a credit report, sometimes CLUE reports contain mistakes. If you see one, you should contact ChoicePoint to have the offending note removed. This takes less than a month in the majority of cases. Unlike a credit report, though, if you have some information that would make your CLUE report look better, such as the installment of an anti theft device, then you can have that added to the report, making your auto insurance rates go down.
- Your CLUE report and your GA auto insurance company.
Once you are already with a company, they will almost never check your CLUE report again. Normally, these reports are looked at when you are getting a policy with a new insurance company.
The CLUE report will not be used the same across the board by every insurance company, but the number of claims you have on it will certainly determine whether your rate goes up or down.
Cheers,
Fashun Guadarrama.
What Is The Minimum Car Insurance Coverage in Georgia?
Reader’s Question:
What is the Georgia law minimum car insurance requirements?
Melanie
Thank you for asking.
It is requires for all motorist in the state of Georgia to carry accident liability insurance for each of the cars they own. This mandatory liability insurance will help cover any damages or medical payments for those injured in the accidents. The minimum amounts that you may be covered in order to satisfy the law are:
$25000 per person for bodily injury
$50000 per accident for bodily injury to two or more people
$25000 per accident for the property damage
It is possible for the state now to verify your insurance status online. It is required that all insurance companies should submit policy information to a state wide database electronically when an individual purchases an insurance. You may also be able to check with the Department of Revenue website your status online and verify if your insurance coverage is properly documented to save you time and expense in the future.
The processing time is 30 days to transmit the data by the insurance companies.
Goodluck!
MariCAR
What Are The Exceptions For Not Having Car Insurance in Georgia
Reader’s Question:
What are the exceptions for vehicles not to be insured in Georgia?
Therese
Good Question Therese.
There are occasions that a car need not to be insured. If your car qualifies for one of the exceptions, you will be needing to file an affidavit stating the reason and you will be from the lapse fees and penalties for not having car insurance on your vehicle.
Here are the list of exemptions:
1. if the vehicle was sold or if the ownership was transferred
2. if the owner moved to a different state or if th owner of the vehicle was transferred out of state
3. if the vehicle lease was terminated
4. If the vehicle was wrecked, salvaged or junked
5. if the vehicle was repossessed, stolen or not driven because its inoperable
6. if the vehicle was stored or used seasonally for agricultural purposes
Those who are in the military are also exempted if they are deployed and the vehicle is not being used. You will need to fill up an affidavit to claim your exemption if you are in the military. You can file this at your local tag office before, during or after your deployment.
Can You Stop Paying For Car Insurance In Georgia?
Reader’s question:
I live in Georgia. I would like to know what would happen if I stop paying for my car insurance?
Archie
Good question.
If you stop paying for your insurance policy, your insurance company will cancel your insurance due to non payment and that would definitely cause you trouble. This cancellation will appear in your credit history and would be black mark on your credit report as non-payment. This might result on you having a hard time getting a car insurance in the future.
Most of the insurance companies would not insure an individual that has not previously paid on their policy. If due to non payment your insurance lapsed, your insurance company will inform the Georgia Department of Revenue a notice of termination or cancellation of insurance. A Notice of Lapse Mandatory Liability Insurance Coverage will be mailed to you once the DOR sees that you are uninsured. The notice will request you to pay a $25 lapse fee and would require you to show proof of valid car insurance coverage within 30 days. If you fail to pay the fee and show proof of insurance, your vehicle registration will be suspended or revoked. If you drive with suspended vehicle registration is considered a misdemeanor. You will also be subject to fines and vehicle impoundment if you are caught driving without car insurance coverage.
Goodluck!
MariCAR
SR22A Insurance In Georgia
Reader’s question:
Hi! I just want to know what an SR22A is. Thank you.
Michelle
Thank you for asking Michelle.
The Sr22A is a term used by the state of Georgia for a GA Responsibility Insurance certificate which is similar to SR22 except that it has further restrictions. In Georgia, this financial responsibility filing is required for motorist that has been convicted operating a vehicle without liability insurance.
SR22A is also sometimes called as the Financial Responsibility. Under title 40 of the official Code of Georgia Annotated shows the reason why an individual needs to maintain an SR22A.The individual’s amount of time to carry this depends on certain reasons .Usually it is required from between one to three years.
If you are for example trying to reinstate you license in Georgia after suspension due to subsequent conviction of no proof of insurance,an sr22a must be maintained for 3 years from the date of the conviction.
An insurance company must certify that you have a valid liability insurance. This certification will be filed on the sr-22a form. If you have been notified by the Department of Motor Vehicles that you must carry an SR-22a filing, this should be certified by the insurance company to show proof that you have insurance and meet the financial responsibility requirement in the state of Georgia. However if you are going to cancel the policy before the date the state has given you to carry the sr22a, the insurance company will notify the DMV that the policy has been cancelled and that you no longer have the required insurance.
Goodluck!
-MariCAR
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