• Georgia law requires motorists to carry insurance with a minimum liability of $100,000.cars parking in parking area image by L. Shat from Fotolia.com
  
  Car insurance allows motorists to establish financial responsibility in the event they cause an accident that results in injury, death or property damage. State laws vary in the types of coverage required, minimum coverage amounts and penalties for failure to maintain insurance. The state of Georgia requires drivers to maintain liability insurance---coverage for damages caused by the driver of the policy. Also, drivers operating leased or financed vehicles are often required by the lender to maintain additional types of coverage, such as comprehensive and collision.
  
  

Insurance Requirements

• Georgia law requires drivers to carry bodily injury insurance with a minimum liability of $25,000 for one injured party and $50,000 per occurrence. This means that if the policyholder causes an accident that results in injury of one person, the policy must be able to pay out at least $25,000. If an accident causes injury to two or more people, the policy must be able to pay out at least $50,000. In addition, drivers must carry property damage insurance with a minimum liability of $25,000 per occurrence. Driving without this coverage is a misdemeanor and punishable by up to a year in jail and a $1,000 fine.
  
  

Reporting Coverage

• State law requires insurance companies to electronically report insurance policies to the Georgia Electronic Insurance Compliance System within 30 days after a policy is purchased. This electronic database allows law enforcement, the Department of Driver Services and other state offices to access the information. Drivers, however, should always carry their insurance card in their vehicle. Insurance companies also report policy cancellations and terminations, and the Department of Driver Services will contact a driver with lapsed insurance and instruct her to obtain a new policy. Failure to do so can result in fines and revocation or suspension of vehicle registration.
  
  

Alternate Means of Financial Responsibility

• While most drivers establish financial responsibility with a car insurance policy, there are ways to do so. Motorists can secure a bond, deposit or other means that provides the minimum $100,000 coverage (combination of the injury and property damage minimums). The Georgia Insurance and Safety Fire Commissioner handles these deposits.