Georgia residents who own or lease vehicles must accept financial responsibility for those vehicles in order to legally operate them on state roads.

Ways to Establish Financial Responsibility

You must have proof of financial responsibility in order to legally drive your vehicle in Georgia. Proving you have financial responsibility for your vehicle means proving you have the funds to cover damages your vehicle causes to other vehicles or other people.

In this state, you can obtain proof of financial responsibility when you:

• Purchase a liability insurance policy from a carrier licensed with the Office of Insurance and Safety Fire Commissioner. Most drivers take this route, and we explain the requirements directly below.

• Opt to self-insure through the Office of Insurance and Safety Fire Commissioner. For more information about this option, contact the Commissioner’s office at (800) 656-2298.

Georgia Liability Insurance Requirements for Private Passenger Vehicles

Unless you decide to self-insure your vehicle, you must purchase and maintain liability insurance that includes:

• $25,000 per person for bodily injury

• $50,000 per accident for bodily injury to two or more people

• $25,000 per accident for property damage

Liability insurance is the least amount of coverage you can legally get away with; however, many drivers choose to amp up their protection with additional types of coverage. Too, sometimes people―such as those who work with lienholders―have no choice but to purchase additional coverage.

Remember that not all vehicles require liability insurance. You don’t need to purchase insurance for your non-motorized vehicles (such as trailers and campers), nor do you need insurance for vehicle exempt from registration (such as mopeds and ATVs).

Electronic Reporting

The Department of Revenue requires your insurance company to submit your policy information electronically to a statewide database when you purchase coverage. This record acts as proof of your financial responsibility, and you can keep up with it when you check your insurance status online.

Proof of Insurance and Financial Responsibility

Even though the Motor Vehicle Division (MVD) keeps a record of your proof of insurance in the tag and title database, situations may arise when there is no electronic record yet, or at all, and you need to show some other kind of proof.

Insurance Card

Although insurance cards are no longer valid as sole proofs of insurance for any vehicle other than those that are self-insured or under the International Registration Plan (IRP) or a fleet policy, the state still requires carriers to issue them and owners to keep them in their vehicles at all times.

Self-Insured Information

When you self-insure your vehicle, you can use the self-insured insurance information card and the certificate of self-insurance you receive from the Office of Insurance and Safety Fire Commissioner as proof of financial responsibility.

Insurance Binder

Your insurance carrier will issue you this binder if it’s your first time purchasing insurance for the vehicle. The binder is only valid for 30 days, and it’s a common way to show proof of insurance while the MVD waits for an electronic record of your insurance.

Bill of Sale/Declaration Page

If you’ve just purchased the vehicle, a copy of your bill of sale along with an insurance declaration page will serve as proof of insurance for 30 days. This method is also a common way to show proof of financial responsibility until the MVD receives an electronic record of your insurance.

Penalties for Failure to Maintain Financial Responsibility

The MVD thoroughly explains the situations in which you’re exempt from maintaining financial responsibility and the penalties for having no proof of insurance.

Simply put, if you allow a lapse in insurance coverage or fail to obtain liability insurance and your vehicle isn’t exempt, you could face:

• Registration suspension for up to six months, depending on the offense number.

• A lapse fee of $25 and a registration reinstatement fee of up to $160, depending on the offense number.

• Misdemeanor charges if law enforcement catches you driving your vehicle before paying your fees and reinstating your registration.

If you need additional information about liability insurance requirements, registration reinstatement processes, or insurance exemptions contact the MVD at (404) 968-3800.