Collision and comprehensive coverage in Georgia

Collision and comprehensive coverage pay for damage to your own vehicle, whoever was at fault, under the terms of your policy. Georgia’s insurance requirement in O.C.G.A. § 33-34-4 concerns liability insurance, so neither is required by that section, though a lender or lessor can require them by contract. In Georgia, what these coverages pay has a feature worth knowing: the Supreme Court held in State Farm v. Mabry that physical damage coverage can include a vehicle’s diminished value after repair.

What each one covers

Feature	Collision	Comprehensive
Basic trigger	Impact with a vehicle or object, or an overturn	Loss from a cause other than collision, as the policy lists
Examples	Crash with another car, a guardrail, or a tree	Theft, fire, vandalism, falling objects, hail, flood
Fault	Not the test	Not the test
Deductible	As shown on the declarations page	As shown, and glass may differ

The policy controls the edge cases. An animal strike is one example, and a policy may place it under comprehensive. Check the definitions section instead of relying on a general rule. A hit-and-run may be handled under collision, under uninsured motorist property coverage, or under both, as explained on uninsured motorist coverage.

Choosing between your policy and the other driver’s

Route	Timing	Cost to you	Risk
Your collision coverage	Does not wait on the other insurer's fault decision	Deductible, possibly recovered later	Deductible may not come back in full
At-fault driver's liability	After that insurer accepts liability	No deductible	Delay and valuation disputes
UM property coverage	When the other driver is uninsured under the statute	A deductible of at least $250 under § 33-7-11(a)(2)	Coverage must exist on your policy

If your insurer pays, it may pursue the other driver and its insurer. Ask how any deductible recovered is handled. Using one route does not necessarily end your rights on another, but a release can, so read what you sign. Rental and towing costs are covered separately in rental car coverage and loss of use.

What the policy pays: value, repair, and diminished value

A policy may pay the lesser of the vehicle’s actual cash value or the repair cost, less the deductible. A policy may offer new car replacement or similar terms, and that is an added coverage to be read on its own.

Georgia’s distinct rule comes from State Farm v. Mabry, 274 Ga. 498 (2001). Policyholders claimed State Farm had failed to pay part of their first-party physical damage losses. The Court drew on an older line of cases treating the insurer’s primary obligation as covering “the difference between the value of the property immediately before the injury and its value immediately afterwards”, with the repair-or-replace clause as a subordinate limit. It upheld the trial court’s finding that a vehicle’s value can be reduced even by a proper repair. So a person with repaired damage to their own car may ask the insurer to address diminished value.

Limits and details matter, including the policy’s current language, how the insurer assesses the loss, and any formula used. In Amica v. Sanders, 335 Ga. App. 245 (2015), a third-party case, simply using a formula developed after Mabry was not bad faith without other evidence. Third-party diminished value is covered on property damage claims.

Total loss and disputes over value

A vehicle may be totaled when repair would be uneconomic. The policy, the insurer’s practice, and any applicable regulation decide how that is measured. Ask the insurer for its valuation report and check it for errors in trim, mileage, options, and condition. Comparable sales that do not resemble your vehicle are a fair target.

If you disagree, these tools are available:

• A written counter with evidence. Comparable listings or an independent valuation.
• The appraisal clause, if your policy has one. It may lead to a binding amount. In Clary v. Allstate, 340 Ga. App. 351 (2017), a home insurance case, the insurer paid the appraisal award and judgment on it was upheld.
• A complaint or demand. Section 33-4-6 can apply to a refusal to pay a covered first-party loss within 60 days after demand, if a finding of bad faith is made. The limits are covered on insurance bad faith.

If you owe more than the settlement pays, see GAP coverage.

How this fits with liability coverage

Liability insurance pays others when you are responsible, as liability coverage explains, and it does not fix your own car. Georgia’s fault-based system means you can seek your vehicle damage from the other driver, but only collision or comprehensive pays regardless of fault. So a driver who caused a crash and has no collision coverage has no insurance recovery for their own vehicle.

Deciding whether to carry them

This is a choice that depends on the vehicle’s value, the deductible, the premium, whether a loan requires coverage, and how much loss a person can absorb. If a financed vehicle’s coverage lapses, a lender may have contract remedies, and a GAP product may not pay. A person with an older vehicle can compare the likely total loss payment, after the deductible, with the yearly cost.

After a loss

1. Report the claim in the time your policy requires.
2. Photograph the vehicle and keep it available for inspection.
3. Get the estimate and any supplement in writing.
4. For a repair, ask how the insurer assesses diminished value.
5. Note the four-year limit in §§ 9-3-31 and 9-3-32 for a claim against the other driver. A policy may have its own shorter suit deadline against your insurer, so read that clause.

Sources

• Official Code of Georgia Annotated, November 2022 public release: §§ 9-3-31, 9-3-32, 33-4-6, 33-7-11, 33-34-4
• State Farm v. Mabry, 274 Ga. 498
• Amica v. Sanders, 335 Ga. App. 245
• Clary v. Allstate, 340 Ga. App. 351

This page was last reviewed in November 2026 for general information. Laws and court decisions can change after that date. It is not legal advice and does not create an attorney-client relationship.