Sep 27, 2010
Posted by Samantha Anton
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Georgia state contour with Capital City against blurred USA flag image by Stasys Eidiejus from Fotolia.com There are three insurance options available for Georgia drivers. Most states require auto insurance for registered vehicles, and Georgia is no exception. They will accept traditional car insurance purchased from an insurance company or agent, self-insurance or a bond deposit made directly with the Department of Motor Vehicles. In all cases, the amount of the insurance has to meet or exceed the state minimum vehicle insurance requirements.
Traditional Insurance
- Georgia minimum insurance is equal to 25/50/25, or $25,000 per person, $50,000 per incident and $25,000 for property damage. Traditional car insurance is available from local or Internet-based insurers. Traditional insurance coverage allows you to add options to your coverage, such as comprehensive coverage, that are not available under standard self-insurance processes. The disadvantage of traditional insurance is that it can be quite expensive if you have a fleet of vehicles or if you are concerned that you have paid insurance for years and never filed a claim. The primary benefit of traditional insurance is that you are only responsible for a small portion of a maximum insurance claim, and self-insurance requires you to put the money into a bond as a lump sum.
Self-Insurance
- Choosing to insure your own vehicles or those of your company is an acceptable alternative to traditional car insurance. There are two primary ways of self-insuring: DMV bonds or certified deposits. Certified deposits are reserved savings accounts that serve as your bond, and must be equal or greater than the minimum per-vehicle insurance limits. For a single person, this is $50,000, but the amount may change according to the number of vehicles and their use. Proof of a certified deposit can be taken to the Georgia Office of Insurance and Fire Safety to receive a self-insurance card. The advantage of a savings account is that you will continue to accrue interest on your deposit. Simply having money in your bank account is not sufficient as a form of self-insurance, and lack of proper insurance verification could result in traffic citations or vehicle impounding.
DMV Insurance Bond
- A deposit can be made with the Georgia Department of Insurance and Fire Safety for self-insurers. This is the preferred method of self-insuring, according to the Georgia Department of Motor Vehicles. By purchasing your bond directly through the DMV, they are guaranteed that the funds remain available. When you purchase the bond, you will receive from the agency a self-insurance card that resembles a traditional auto insurance card, but lists you or your business as the insurer and provides DMV information rather than an insurance company contact.
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