Which Drivers Need Full Coverage Auto Insurance in Georgia?

For many Georgia drivers, full coverage auto insurance seems like a luxury — a nice-to-have rather than a need-to-have. After all, why pay more for full coverage when liability insurance is all that is required by law? 

The truth is that full coverage auto insurance is not only a requirement for many drivers, but it’s also one of the smartest investment decisions you can make. This article explains what full coverage auto insurance is as well as what kinds of drivers need full coverage insurance in Georgia. 

What Is Full Coverage Auto Insurance? 

Full coverage auto insurance typically includes liability insurance as well as collision and comprehensive insurance. Some other optional types of coverage may be included in the term “full coverage,” but for the most part, when people refer to full coverage, that’s the package they mean. It’s generally what is required when your vehicle is financed. 

Since the term full coverage is, in many cases, defined by the person using it, different insurance companies offer different types of car insurance as part of their full coverage plans. Those coverages often include: 

• Liability insurance: Covers injuries to other people and damage to other property if you’re at fault for an accident. All Georgia drivers must have a minimum amount of liability coverage. 
• Collision insurance: Covers damage to your car when it is involved in a covered event, regardless of who’s at fault. 
• Comprehensive insurance: Covers damage to your car that is outside the scope of normal definitions of car accidents. 
• Uninsured/underinsured motorist insurance (UM/UIM): Covers your injuries and car damage if someone else is at fault for an accident but doesn’t have any insurance or doesn’t have enough liability insurance or if you are the victim of a hit and run. 
• Personal injury protection (PIP): Covers your injuries if you’re involved in an accident, regardless of who’s at fault. PIP also covers indirect expenses such as lost wages. 
• GAP insurance: Covers the difference between the current value of your car and the amount you still owe in car or lease payments if your car is stolen or totaled. 
• Rental reimbursement: Covers the cost of a rental car while your car is being repaired. 

As you can see, full coverage auto insurance plans will protect you and your car from almost any type of unexpected event. But do you really need a full-coverage plan, and is it worth the cost? In many cases, the answer to both questions is yes. 

Who Needs Full Coverage Auto Insurance in Georgia? 

You should seriously consider full coverage auto insurance if: 

• You finance or lease your car 
• You can’t afford a new car 
• You use your car for business 

Let’s explore each of the situations in detail. 

You Finance or Lease Your Car in GA 

While only liability insurance is legally required in Georgia, drivers who finance or lease their cars are often required by the leasing or financing company to have full coverage auto insurance. The exact type and amount of coverage will be in your contract. 

If you’re caught without full auto insurance coverage, the leasing or financing company usually has the right to take out a policy on your behalf and charge you for the premium. Needless to say, they won’t be taking time to compare quotes and find the cheapest option. 

Also, keep in mind that the financing company is mainly concerned about protecting the car, so their version of full coverage focuses on collision, comprehensive, and gap coverage. However, other parts of full coverage auto insurance like rental reimbursement and PIP coverage can go a long way to help you after an accident. 

That’s why it’s always in your best interest to shop around for Georgia full coverage auto insurance yourself. For a few dollars more in premium payments, you can save yourself thousands in rental car costs and medical bills down the line. 

You Can’t Afford to Buy a New Car in GA 

Congratulations! You’ve just paid off your car. That means no more car payments and no need to carry full coverage auto insurance anymore, right? Maybe. Before you call up your insurance company to switch to cheaper coverage, ask yourself, “Can I afford to buy a new car if this car gets totaled?” 

On the one hand, full coverage auto insurance is more expensive than minimum liability coverage. But when you consider what you’re getting for your money, it’s actually quite a good deal, especially if you can’t afford to replace your car right now. In many cases, premiums for full coverage are as low as 10% of your car’s value. In other words, you’re protecting the full value of your investment for one-tenth of the price. 

If your car does end up getting totaled in an accident, remember that a full coverage insurance policy will pay you the value of your car. You can put this money toward buying a new car, meaning that even a serious accident won’t mean a total investment loss for you. At the same time, full coverage auto insurance will protect you, your family, and other passengers by covering your medical bills after an accident, regardless of who’s at fault. 

You Use Your Car for Business in Georgia 

If you use your car for business purposes, it almost always makes sense to have commercial auto insurance that includes full coverage. Examples of using your car for business include: 

• Transporting people or goods for a fee 
• Driving frequently between the office or worksite locations 
• Hauling or towing tools and equipment you need to perform your job 

If you work for a company and use your car for business, then your employer will need to provide some form of commercial auto insurance. However, that coverage might be less than you think. For example, rideshare companies like Uber and Lyft don’t usually include rental car reimbursement or PIP insurance as part of their standard insurance coverage. This can leave you on the hook to pay thousands in medical and rental car bills if you’re involved in an accident, even if it was while you were on the job. 

If you’re an independent contractor or small business owner, there’s even more incentive to carry full coverage auto insurance, especially if you need your car for critical tasks like driving to worksites or visiting clients. By getting a full coverage policy, you’re reducing the risk that your business will need to pay for emergency car repairs or medical bills. You’ll also be protecting one of your business’s critical assets — your car.