405 Cornelia Plaza Dr
Cornelia, GA 30531
Phone: 706-395-2522Get Directions
235 Pearl Nix Pkwy Suite 8
Gainesville, GA 30501
Phone: 770-297-1166Get Directions
783 South Main Street Suite 10
Cleveland, GA 30528
Phone: 706-200-1130Get Directions
Georgia requires all vehicles owners have a minimum amount of auto insurance to legally drive on its roads and highways. Lenders also require you to carry different types of auto insurance until you pay off your loan. If you are caught not having sufficient insurance to meet Georgia's or your lender's requirements, you can face serious penalties. Chastain Agency Inc. in Gainesville, GA wants all residents to know the requirements for their automobile insurance policies. Here is a breakdown of what you need to meet both requirements.
Georgia states that your policy at a minimum meets the 25/50/25 rule. This means your policy will provide up to a certain amount for an individual or multiple people who get injured in an accident. The policy will also pay up to a certain amount of vehicle and property damages. You may, and should, choose to have higher limits to protect your financial assets if the minimum requirements don't pay for all the injuries and damages.
Lenders typically require you carry collision and comprehensive coverage to pay for damages to your vehicle in addition to the minimum requirements. The additional coverage protects you and the lender. If the car gets ruined, the insurance could pay off the loan so you don't have to keep on making monthly payments on a car you can't use anymore.
Georgia penalizes drivers who don't have auto insurance. The first time you will have to pay a $25 lapse fee, a $60 reinstatement fee, and your license can be suspended for 60 days. You could also face up to a year in jail. Subsequent offenses will increase the fees and suspension times.
Lenders will typically call in the loan if you fail to meet your contractual agreement to provide collision and comprehensive insurance for the vehicle. Calling in the loan means you will have to pay the loan in full or the lender might repossess the car to protect their interests in the loan.
If you have questions about car insurance in Georgia or you're looking to get a new policy, call us at Chastain Agency Inc. in Gainesville, GA. We have representatives that can answer all your questions and get you set up with an auto policy that protects you while driving on the roads and highways.