3.1 Georgia Auto Insurance Requirements

Georgia's Compulsory Auto Liability Law

Georgia is a compulsory liability state: under O.C.G.A. § 33-34-4 and Title 40, every owner of a registered motor vehicle must maintain continuous liability insurance with an admitted insurer. A producer who places personal or commercial auto must quote at least the statutory floor and document any rejection of optional coverages.

Minimum Liability Limits — 25/50/25

The split-limit shorthand is 25/50/25. There is no single-limit statutory floor; an insured may instead carry a combined single limit of at least $25,000/$50,000/$25,000 equivalent. Trap: candidates confuse Georgia's PD floor ($25,000) with neighboring states that use $5,000 or $10,000 — Georgia's PD minimum is a full $25,000.

Uninsured/Underinsured Motorist — Must Be OFFERED, May Be Rejected

Under O.C.G.A. § 33-7-11, every auto liability policy issued in Georgia must include UM coverage in limits equal to the BI/PD liability limits unless the named insured rejects it or selects lower limits in writing. UM is not unwaivable — a signed, written rejection (or a reduced-limit election) is valid and binding.

• Default UM equals the liability limits the insured purchased.
• Georgia's default UM is "add-on" (excess): UM pays on top of the at-fault driver's liability limits. The insured may instead elect "reduced/difference-in-limits" UM (UM pays only the gap above the tortfeasor's coverage).
• UM covers bodily injury caused by an uninsured driver, a hit-and-run, or an underinsured driver whose limits are exhausted.

Exam Tip: The old idea that Georgia UM "cannot be waived" is WRONG. It must be offered equal to liability limits, but a written rejection or lower-limit election is permitted. Watch for this distractor.

Proof of Coverage & Electronic Verification

Georgia uses an electronic database (the Georgia Electronic Insurance Compliance System, GEICS, accessed through the GRATIS registration/title system) so insurers transmit coverage data directly to the state.

• Insurers report new business, renewals, and cancellations electronically.
• A coverage lapse automatically flags the registration; the owner receives notice and the tag/registration can be suspended.
• Reinstatement requires proof of active coverage plus a lapse/reinstatement fee (commonly $25 if cured within 30 days, higher thereafter).
• Drivers must still be able to show proof — a physical or electronic insurance card — on demand.

Exam Logistics Snapshot

The Georgia Property & Casualty licensing exam is delivered by the state vendor as a combined sitting: roughly 125 scored questions (plus about 10 unscored pretest items) within a 2.5-hour limit, with a 70% passing standard applied to the national and Georgia-specific portions. Georgia-specific casualty law in this chapter (the 25/50/25 auto floor, the 50% bar, UM rules, and the workers'-comp thresholds) sits squarely in the state section, so memorize the exact numbers rather than reasoning them out under time pressure.

At-Fault System & Comparative Negligence

Georgia is a tort (at-fault) auto state — it is not a no-fault state and does not mandate Personal Injury Protection (PIP). The at-fault driver's liability insurer pays the injured party. When both drivers share blame, recovery is governed by modified comparative negligence with a 50% bar under O.C.G.A. § 51-12-33.

The 50% Bar

Recovery is barred once the claimant reaches exactly 50%. Worked example: in a $100,000 claim where the injured driver is 30% at fault, the award is reduced to $70,000 ($100,000 × 70%). If that driver were 50% at fault, recovery would be $0.

Exam Tip: Georgia's 50% bar differs from a 51% bar (used in states like Texas), where a claimant can still recover while exactly 50% at fault. Memorize: Georgia bars at 50% and up.

Optional but Common Coverages

Penalties & SR-22

Operating without the compulsory liability coverage carries escalating consequences:

• Suspension of the vehicle registration and license plate.
• A lapse fee plus a separate license-suspension reinstatement fee.
• A misdemeanor charge with fines up to $1,000 and possible jail for repeat offenses.
• Required SR-22 certificate — the insurer files proof of future financial responsibility with the state, typically for three years — after serious or repeat violations or a DUI.

Memory aid: "25/50/25, at-fault, 50% bar, UM offered not forced, SR-22 = proof to the state."

Commercial Auto & Motor Carriers

The 25/50/25 figure is a personal-lines floor. Regulated motor carriers and for-hire trucking face far higher financial-responsibility requirements — commonly $300,000 to $5,000,000 depending on weight, passengers, and cargo (hazmat). Interstate haulers evidence this with the federal MCS-90 endorsement, which guarantees public-injury payment even if a coverage exclusion would otherwise apply. A producer must never quote the personal minimum for a trucking risk.

Stacking & Resident Relatives

Georgia permits stacking of UM limits across multiple owned vehicles on the same policy in some circumstances, increasing the pool available to an injured insured. UM also follows the named insured and resident relatives as occupants of any vehicle and even as pedestrians, not just while in the insured auto — an exam favorite distinguishing UM (a person-following coverage) from collision (a vehicle-following coverage)."