On the Georgia Property & Casualty exam, the Personal Automobile Policy appears both as the standard ISO-style contract and as a layer of Georgia auto laws you must apply. This guide reviews the policy's lettered coverage parts, then drills the Georgia overlay: the at-fault (tort) system, the modified-comparative 50% bar, the commonly cited 25/50/25 minimum limits, and the rule that UM/UIM must be offered. The Georgia-specific material is where most state credit is earned.

Policy structure (the national base)

The Personal Auto Policy (PAP) is a packaged contract organized into lettered parts:

• Part A — Liability: pays bodily injury (BI) and property damage (PD) the insured is legally liable for; the insurer provides a defense, and defense costs are paid in addition to the limit.
• Part B — Medical Payments: pays medical/funeral costs for occupants regardless of fault.
• Part C — Uninsured/Underinsured Motorists (UM/UIM): pays the insured's injuries when the at-fault party is uninsured or underinsured.
• Part D — Coverage for Damage to Your Auto: Collision and Other Than Collision (Comprehensive), each with a deductible, settled at Actual Cash Value (ACV).
• Part E — Duties After an Accident or Loss and Part F — General Provisions.

Limits may be written as split limits (e.g., 25/50/25) or as a Combined Single Limit (CSL). Insureds include the named insured, resident spouse, resident relatives (including a child away at school), and permissive users. Eligible vehicles are private passenger autos, pickups, and vans not used mainly for business. That framework is national; Georgia governs the limits and the liability environment.

Georgia uses a tort (at-fault) liability system

Georgia is an at-fault / tort state, not a no-fault state. The driver who causes a crash is financially responsible, and the injured party recovers from that driver's liability coverage or by suing. This is why liability and financial responsibility sit at the center of Georgia auto regulation.

The 50% bar: modified comparative negligence

Georgia applies modified comparative negligence under the "50% bar" rule:

• A claimant who is less than 50% at fault may recover, reduced by their own percentage of fault.
• A claimant who is 50% or more at fault recovers nothing.

Note the contrast with the 51% bar used by some other states: in Georgia the cutoff is 50% or more = barred. Expect a question that hinges on whether a claimant who is "exactly 50%" can recover (in Georgia, no).

Minimum liability limits: commonly cited 25/50/25

Every Georgia driver must show financial responsibility, usually by carrying liability insurance at or above the state minimum split limits, commonly cited as 25/50/25:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $25,000 property damage per accident

Shorthand: "25/50/25." These are statutory floors—producers routinely recommend higher limits. Driving without coverage brings fines, registration/license consequences, and full personal exposure for damages. (Verify the current minimums, as legislatures adjust them.)

UM/UIM must be offered

UM/UIM covers the insured when the at-fault driver lacks insurance or carries too little.

• In Georgia, UM/UIM must be offered, and the insured may reject it in writing; absent a valid written rejection, it is generally included at limits equal to the liability limits.
• Georgia recognizes both "reduced/difference" (offset) and "added-on/excess" UIM approaches—the insured may choose how UIM stacks against the at-fault driver's limits.
• The other driver must be legally at fault for UM/UIM to respond.

The recurring theme: UM/UIM is not silently omitted—it is part of the policy unless waived in writing.

PIP / Med Pay note

Because Georgia is tort, not no-fault, there is no mandatory PIP. Optional Medical Payments (Med Pay) can be purchased to cover the insured's and passengers' medical/funeral costs regardless of fault, but it is not required. Don't confuse Georgia with no-fault states that mandate PIP.

Required vs. optional coverages

Key Georgia numbers to memorize

Common exam traps

• Georgia is at-fault (tort), not no-fault—there is no mandatory PIP.
• The 50% bar (not the 51% bar): a claimant exactly 50% at fault recovers nothing in Georgia.
• 25/50/25—the $25k appears twice (per-person BI and PD); don't transpose the $50k per-accident figure.
• UM/UIM is included unless rejected in writing; it is not buried until requested.
• Hitting an animal is Other Than Collision (Comprehensive), the same national rule.
• Liability defense costs are paid on top of the limit (national rule that still applies in Georgia).

Quick recap

• The PAP's Parts A–F structure is national; Georgia sets the limits and legal framework.
• Georgia is a tort/at-fault state using modified comparative negligence with a 50% bar (50% or more at fault = no recovery).
• Minimum liability is commonly cited as 25/50/25.
• UM/UIM must be offered and applies unless rejected in writing; there is no mandatory PIP because Georgia is not a no-fault state.
• Physical-damage coverages (Collision/Comprehensive) are optional unless a lender requires them.