Common Mistakes Georgia Drivers Make with Auto Insurance
Getting car insurance in Georgia is not just a box to check. A few common auto insurance mistakes can cost you real money or, in the worst-case scenario, leave you unprotected after a crash.
Below are the most frequent Georgia auto insurance mistakes drivers make, how to avoid them, and simple steps to keep your policy both compliant and cost-effective without having to break the bank — along with a special helping of auto policy tips from Velox Insurance that can help you stay on the straight and narrow when getting car insurance quotes in Georgia.
Skipping Required Minimum Coverage
Skipping required minimum insurance is a one-way ticket to losing your license and facing potential harsh penalties. And, if you do get in an accident, it means that your entire bank account plus your home, if you own one, is up for grabs if you get sued. Just don’t skip the minimum, period.
Georgia drivers’ insurance isn’t just designed to keep your bank account healthy; it’s also there to keep you out of jail.
Understanding Georgia’s Liability Requirements
Georgia law requires every registered vehicle to carry at least $25,000 bodily injury per person, $50,000 bodily injury per incident, and $25,000 property damage liability coverage. Driving without at least these limits can trigger registration problems and fines. Liability coverage in Georgia is not something to forget.
Just meeting the minimum is only the starting point. Georgia maintains an electronic insurance verification system tied to your registration. Your insurer must transmit proof of coverage to the state database, so even if you have a paper ID card, a mismatch in the database can cause a “lapse” flag. You can check what the state sees for your vehicle through the Department of Revenue’s DRIVES services.
Risks of Underinsuring Your Vehicle
Minimum limits can be exhausted quickly. A newer car, a multi-vehicle collision, or injuries with hospital stays can easily exceed 25/50/25. If a claim surpasses your limits, you may be personally responsible for the difference.
Increasing your limits up to an amount that will help cover any injuries and damages is a good idea. In addition, adding collision coverage, comprehensive or both will help you pay for the repairs (or replacement) of your vehicle if it is totaled or stolen – even if a wreck is your fault.
Georgia also encourages drivers to carry uninsured/underinsured motorist coverage, which protects you if the at-fault driver has none or too little insurance. State law specifies that UM coverage operates as additional insurance in excess of the at-fault driver’s coverage up to your losses. Consider buying UM/UIM at the same level as your liability limits to avoid making underinsured driver mistakes.
Ignoring Discounts and Savings Opportunities
A big reason why people complain about their premiums is that they forget about discounts and other savings. Don’t make that same mistake when you’re getting your own policy! It’s one of the most straightforward car insurance tips. Here’s how to save the most money on auto insurance in the Peach State.
Multi-Car and Bundling Discounts
Many households leave money on the table by insuring cars on separate policies or splitting home insurance and auto with different carriers. On a single policy, multi-car pricing plus bundling home or renters can reduce premiums by a large amount. Insurers report your active policy electronically to the state, so keeping a single, stable policy can also reduce the chance of database mismatches that look like coverage lapses.
Safe Driver and Good Student Savings
Clean driving records often qualify for safe driver discounts. Families with teens can look for good student savings if a listed driver maintains qualifying grades (and not looking for those savings is one of the most common mistakes parents make when insuring teen drivers).
While discount rules vary by insurer, these programs do not change your legal obligations to keep continuous liability coverage on file with Georgia’s system. Verify your listed drivers and usage so the pricing matches your real-world risk and the state receives the correct electronic data.
There are plenty of other types of car insurance discounts in Georgia. Ask your InsureOne agent which ones you can use to lower your bill.
Misunderstanding Policy Terms
Before you sign on the dotted line, be sure you understand exactly what your coverage limits are. Not having a clear picture of your policy can lead to problems when you feel you have a legit claim.
Misunderstanding the legalese in policy documents might be a lot more common than you realize. Some of the more basic terms (deductible, premium, etc) might be more intuitive, but there’s a fair amount of language that might come across as clunky. Here’s how to avoid making that mistake by being prepared.
Deductibles and Coverage Limits Explained
A deductible is what you pay out of pocket on comprehensive or collision claims before your insurer pays the rest. Raising it may lower your premium, but make sure the amount is truly affordable if you need repairs. It’s one of the four essential things to consider when shopping for car insurance in Georgia.
Limits are the maximum your policy pays on a covered claim. Georgia’s legal minimums are liability limits only. Comprehensive and collision are optional but often required by lenders. If you own your car outright and skip physical damage coverage, you are self-insuring the vehicle and could face a large repair or replacement bill after a crash or theft.
What’s Not Covered Under Standard Policies
You might be surprised as to what’s not included under a basic policy. These sorts of policy add-ons may not be immediately available unless you specifically request them:
- Rental reimbursement after a covered loss
- Roadside assistance
- Custom equipment beyond a modest limit
- Medical Payments (MedPay) in Georgia can help with medical costs regardless of fault, but it is optional and not automatically included. Consider adding MedPay to plug potential gaps.
- Also, confirm how your UM/UIM works if you added it. Georgia law provides UM coverage as additional protection above the at-fault driver’s liability, but you need to select and maintain it. Do not assume it is included at the same level as your liability.
Not Updating Your Policy Regularly
Another one of the costly auto insurance mistakes: not regularly reviewing your policy. It’s easy to fall into the trap of not having the protection you need.
Life Changes That Affect Coverage
Significant life events change your risk profile and often your rates. Suppose you decide to move within Georgia or leave the Peach State, add or remove drivers (including teens and household members), change jobs/commute distance, or pay off your car. In that case, these can all potentially have policy ramifications.
When these happen, inform your insurer promptly. Georgia ties proof of insurance to your registration electronically. If you switch insurers, make sure the new policy is transmitted to the state without a gap. Use the DOR’s online status lookup to confirm the state sees your active policy.
Seasonal Driving and Vehicle Changes
Should you park a car seasonally or place it in storage? Georgia requires continuous liability coverage for vehicles with active registrations. If you cancel coverage but keep the tag, the state will treat that as a lapse and assess fees and registration suspension. If you genuinely will not operate the car, talk to your County Tag Office about the proper steps before you change your insurance.
Failing to Compare Quotes Periodically
A good idea is to keep reviewing quotes periodically. You never know if you’re paying the best possible rate unless you check for new pricing on the regular. Here are a few reasons why you shouldn’t hesitate to price shop.
Why Renewal Rates Can Increase
Renewals can rise due to claim trends, repair costs, and your own record. Georgia agencies periodically verify your insurance electronically, but they do not control how much any given insurer charges you. If your insurer raises rates, you are free to shop among licensed carriers that will still report your coverage to the state’s system.
How to Shop for Competitive Rates
Besides letting a Velox agent do it for you, here’s a four-step guide to getting the most competitive rates in the Peach State:
- Match limits apples-to-apples. Start quotes with at least 25/50/25 in liability and consider higher limits. Add UM/UIM at the same levels for better protection.
- Choose realistic deductibles. Balance premium savings with out-of-pocket risk.
- Ask about discounts you actually qualify for, then verify the final premium includes them.
- Confirm electronic proof. After binding coverage, use the DOR’s DRIVES lookup to ensure the state shows your policy as active to avoid unintended lapse notices.
- Check customer satisfaction.
Protect Your Georgia Ride with Velox Insurance
You’ve seen the auto insurance mistakes that raise costs. A few wise choices now can save you thousands later. Velox can help you choose limits, add UM/UIM and MedPay where it makes sense, and keep your coverage properly reported to the state. Ready to get started? Give us a call now at (855) 468-3569, get a quote online, or visit one of our Georgia offices today to save on car insurance in the Peach State.
FAQs
What Are the Consequences of Letting My Policy Lapse?
Letting the policy lapse, even briefly, is a bad idea. A lapse can trigger a $25 lapse fine and a $160 reinstatement fee, along with registration suspension until you fix it. Multiple suspensions within five years can stack consequences and costs. Pay attention to billing, especially when switching carriers or updating payment methods.
Does the Type of Car I Drive Affect My Insurance Rates?
Yes. Vehicles that cost more to repair or are stolen more often can be more expensive to insure. If you finance or lease, your lender may require comprehensive and collision coverage. No matter the car, you must still carry Georgia’s 25/50/25 liability minimums and ensure your insurer reports your policy to the state.
How Can I Avoid Being Overcharged for Auto Insurance in Georgia?
Shop periodically with the same limits and deductibles for fair comparisons, ask for bundling and safe-driver discounts, and keep your information current. After you change carriers, use the DOR’s DRIVES system to verify that the state received your proof of insurance, which helps you avoid lapse penalties that can add unnecessary costs.
