Is Georgia a no-fault state for auto insurance?

There are 12 no-fault states for car insurance: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah. In these no-fault states, each driver’s car insurance provider pays their own medical claims after an accident regardless of who was at fault.

No-Fault Insurance States

• Florida
• Hawaii
• Kansas
• Kentucky
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Pennsylvania
• Utah

A no-fault insurance system limits the ability of drivers and passengers to sue for additional compensation. Drivers in no-fault states can sue for injuries only if they are determined to be “severe” – the legal definition of which varies from state to state. No-fault rules only apply to injuries, however. Property damage claims in no-fault states are still paid by the at-fault driver’s liability insurance.

Special Types of No-Fault States

"Choice" No-Fault States

• Kentucky
• New Jersey
• Pennsylvania

Of the 12 “pure” no-fault states, New Jersey, Pennsylvania and Kentucky are the only ones that give drivers an option to choose between buying a no-fault insurance policy and a traditional auto liability insurance policy.

"Add-on" No-Fault States

• Arkansas
• Delaware
• District of Columbia
• Maryland
• Oregon
• South Dakota
• Texas
• Virginia
• Washington

Besides the 12 no-fault states, some “add-on” states have auto liability insurance laws that are a blend of the no-fault and at-fault insurance systems. These add-on states are not considered to be true no-fault states by the Insurance Information Institute because they do not restrict or place limits on a driver’s right to sue for additional compensation.

Finally, at-fault states follow a tort system, which assigns responsibility for an accident to a driver or drivers. At-fault states also allow injured parties to sue negligent drivers for injuries, as well as pain and suffering, without restrictions. Most U.S. states are at-fault states.

Insurance Rates in No-Fault States

Drivers who live in one of the 12 no-fault insurance states can expect to pay more for auto insurance than those in at-fault states. Insurance fraud is more common in no-fault states, given that claims are paid regardless of who was at fault, providing an incentive for some individuals to exaggerate the extent of their injuries. Those heightened rates of fraud, combined with mandatory PIP insurance, raise costs for auto insurers, which are passed on to consumers.

It should be no surprise that the three most expensive states in WalletHub’s Cheap Car Insurance Study – Michigan, New York, and New Jersey – are all no-fault states. So if you live in a no-fault state or will be moving to one, be sure to compare quotes so that you can get an auto insurance policy that fits your needs and your budget.

The 5 top-selling auto insurers in Georgia are also the top 5 auto insurance companies in the U.S. In fact, all of the popular national auto insurance companies operate in Georgia. Georgia also has a large selection of local and regional auto insurance providers, led by Georgia Farm Bureau.

Largest Georgia Auto Insurance Companies, by Premiums… read full answer

1. State Farm
2. Progressive
3. Geico
4. Allstate
5. USAA
6. Georgia Farm Bureau
7. Travelers
8. Liberty Mutual
9. Auto-Owners Insurance
10. Nationwide

Among all the Georgia auto insurance companies, big and small, 21st Century, American National, Twin City Fire Insurance Company, the Hartford Insurance, and Safe Auto seem to be the cheapest options overall, according to recent WalletHub research.

WalletHub collected more than 9,500 quotes from 73 auto insurers in the state to come up with its list of the Best Cheap Car Insurance in Georgia for 2019. This can be a useful starting point in your search for good coverage at a good rate.

The penalty for driving without insurance in Georgia is a fine of at least $200, loss of driving privileges, criminal conviction and potential jail time. Georgia is not lenient with drivers who get caught on the road without insurance, even first-time offenders.

For a first offense, you will be charged with a misdemeanor that remains on your record permanently. This can affect your career and housing opportunities. You will also have to pay a court-ordered fine. And your license will be suspended for 60 days, with no hardship allowances. That means you won’t even be able to drive to work, school or doctor’s appointments. On top of all that, it’s possible—although unlikely—to spend up to a year in jail for a first offense in Georgia.… read full answer

The penalties go up for multiple offenses within a five-year period. In addition to higher fines, of up to $1,000, you can lose your license for as long as six months. The chances of serving jail time also increase with each offense.

Penalties for Driving Without Insurance in Georgia

Consequences of an Insurance Lapse in Georgia

If you don’t actually get caught by a police officer for driving without insurance, Georgia imposes automatic penalties for just letting your insurance lapse. If your insurance is ever terminated or expired, your insurance company must electronically notify the Georgia Department of Driver Services (DDS). The DDS gives you 30 days from the date of the expiration to provide proof of new insurance.

There are no penalties if they receive your new insurance information within the 30-day period, as long as there has been no lapse in coverage (10+ days without coverage). If there has been a lapse, you’ll face fines of $85 - $185, depending on whether it is a first, second or third offense.

If you don’t provide proof of new insurance during the 30 days, you’ll get a “Notice of Pending Suspension.” That gives you 30 additional days to pay your fine and provide proof of insurance, or else your vehicle’s registration will be suspended.

In addition to all the penalties the state imposes, auto insurance rates are about 30% higher on average once you’ve been convicted of driving without insurance or you’ve allowed your coverage to lapse. You may even need to find an insurer in Georgia that works with high-risk drivers, such as Esurance, Dairyland or Serenity Insurance.