Georgia Auto Insurance Laws
Auto Insurance Laws and Trends in GA
Georgia is the 8th most expensive state in the country to own a vehicle. The cost includes the combination of insurance, repairs, taxes fuel, and vehicle depreciation. This brings the total cost of owning a vehicle to $51,157. This is an extremely important reason to purchase insurance. Not many people can afford to dish out cash for costly vehicle repairs sustained in an accident. Regardless of this fact, Georgia still enjoys insurance premiums that are well below the national average.
Liability coverage includes bodily injuries and property damage. In the event of an accident, Georgia ensures that the party responsible pays for injuries and damage. This is considered to be the tort system of insurance. If a driver is caught without valid insurance, then he or she will be subject to fines, license and registration suspension and could even have their vehicle impounded.
Georgia auto insurance laws
Several laws have been put in place to protect consumers who are purchasing vehicles and auto insurance in Georgia. The first such law is called the Georgia Auto Insurance Plan. This was put into place to allow high risk drivers, who fail to meet insurance company's underwriting guidelines, to purchase insurance. They will be offered policies in the "shared market." These policies are generally more expensive than a policy in the "regular market"
A second law is called the Georgia Lemon Law. This law is designed to protect consumers who purchase a vehicle, boat, or RV. In some case, a vehicle can be deemed to be a "lemon." This means that multiple attempts have been made to make repairs and have failed. Consumers who have purchased a "lemon" can be refunded, have the vehicle replaced, or be compensated with cash.