What you need to know about car insurance in Georgia

Although Georgia has a lower cost of living than many states, car insurance premiums in the Peach State tend to be expensive. State minimum liability coverage is about 15% higher than the national average, while full coverage car insurance is 4% higher than the average across the U.S.

However, rates can vary significantly by company, and you may qualify for cheaper rates based on your driving record and credit. Continue reading to learn about car insurance requirements in Georgia and tips for reducing your premiums.

Key highlights

• State minimum coverage in Georgia costs $577 per year, or $48 per month, about 15% higher than the national average.
• The average premium for a full coverage policy in Georgia is $1,970 per year or $164 monthly, about 4% higher than the national average.
• Drivers must carry liability insurance with minimum coverage limits of 25/50/25.

Understanding car insurance requirements in Georgia

Like most states, the state of Georgia requires all drivers to have, at minimum, liability insurance that meets the following criteria:

• Bodily injury liability, per person per accident: $25,000
• Bodily injury liability, per accident, all persons: $50,000
• Property damage liability, per incident: $25,000

Those coverage limits, commonly written as 25/50/25, are fairly standard; 15 other states have the same liability requirements as Georgia, according to the Insurance Information Institute (Triple-I), an industry research and outreach association

However, those coverage levels may be inadequate in a major at-fault accident. You may benefit from purchasing higher liability limits (such as 100/300/100) or adding collision and comprehensive insurance to cover physical damage to your vehicle.

If you’ve financed or leased a newer vehicle, you will probably be required to purchase full coverage car insurance (which includes liability, collision, and comprehensive coverage). Full coverage may make financial sense even if you own your newer vehicle outright.

Average cost of car insurance in Georgia

Nationally, state minimum liability insurance costs an average of $503 annually. In Georgia, the cost of a policy that meets the state's 25/50/25 liability coverage requirements averages $577 per year, about 15% higher than the national average.

Drivers who lease or finance a vehicle will need a full coverage policy. In Georgia, the average cost is $1,970 per year, about 4% higher than the national average of $1,897. They may also need to purchase gap insurance, which covers the difference between what you owe and what your vehicle’s fair market value is if your vehicle is totaled.

The rates below were collected from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for the following: state minimum liability insurance, standard liability with coverage limits of 50/100/500, and full coverage with liability limits of 100/300/100 and $500 comprehensive and collision deductibles.

How to find cheap auto insurance in Georgia

Although car insurance in Georgia can be expensive, there are several ways to save money:

• Improve your credit. In Georgia, insurers can use your credit information to set your premiums as part of their underwriting process. If you improve your credit, you could potentially qualify for lower premiums.
• Ask about discounts. If you already have an insurance policy, contact your agent or insurer's customer service department for possible discounts. There may be programs you aren't aware of, such as reductions for completing a safe-driving course or discounts for professions like teaching.
• Sign up for usage-based insurance (UBI). These programs base your premiums on how much you drive or on your driving habits. Those who drive fewer-than-average miles and display safe driving behaviors could save substantial money.
• Shop around. Car insurance rates vary significantly by insurer, so request quotes from multiple insurers. You may find that one company offers policies that are hundreds less for the same coverage than your current insurer.

Car insurance rates, by company, in Georgia

In Georgia, on average, Safeway Insurance is the most expensive insurer for full coverage, at $2,812 per year. For the same coverage level, Auto-Owners is the least costly, with a policy averaging just $1,529. As you can see in the table below, you may save hundreds by shopping around for insurance.

Comparing car insurance quotes in Georgia

As the table below illustrates, many factors affect car insurance premiums, including your driving record, age, location and credit score, as well as the deductible and coverage levels you choose and the insurer itself.

Georgia car insurance cost by city

Where you live and keep your vehicle plays a major role in determining your premiums. For instance, ZIP codes in more densely populated areas will have much higher premiums than ZIP codes in rural areas.

Case in point: Drivers in Atlanta tend to pay much more for insurance than drivers in other areas. Policies cost $2,470 per year, 25% more than the state average. By contrast, drivers in Athens pay an average of just $1,816 per year or about 8% less than the state average.

Frequently asked questions

How can I save on car insurance in Georgia?

If you’ve already taken advantage of bundling your auto and dwelling coverage and other common discounts, there are other ways you can save money on car insurance in Georgia:

• Raise your deductible. The higher your deductible – the money you have to pay for repairs or medical bills before your insurer covers the cost – the lower your premium. Increasing your deductible can be a way to save, but make sure you can afford the added out-of-pocket cost in the event of an accident.
• Consider a cheaper car: The make and model of your vehicle is one of the prime factors in how much you pay for insurance. Generally speaking, luxury and sports cars like the Porsche Panamera Turbo will be more to insure than smaller SUVs like the Honda CR-V LX.
• Get several quotes. As mentioned earlier, average premiums can vary significantly by company. You could save hundreds per year by getting quotes and switching insurers. A good place to start is by using an online car insurance calculator to see if what you’re paying currently is more or less than the average in your state.

Is Georgia a no-fault state?

No, Georgia is not a no-fault state. If you are in a car accident caused by another driver, that person and their insurer are responsible for your medical expenses.

Methodology

Editors collected rate information from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and $500 comprehensive and collision deductibles.

In addition, we also calculated rates for these same hypothetical drivers, but with one or more of the following on their record: speeding ticket, at-fault accident, DUI/DWI, poor credit history, or a lapse in coverage.

We analyzed more than 53 million quotes, more than 34,000 ZIP codes and 170 insurance companies nationwide.

Note: 100/300/100 means up to $100,000 for bodily injury per person, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property that you damage.