PLGeorgiaeasy

Under a Georgia personal auto policy, towing and rental reimbursement coverages are best described as:

Q: Under a Georgia personal auto policy, towing and rental reimbursement coverages are best described as:

Optional coverages purchased by endorsement — Georgia compulsory financial responsibility under O.C.G.A. § 40-9-37 only requires bodily injury and property damage liability at 25/50/25. Towing, labor, and rental reimbursement are sold as optional endorsements that the insured may add for an additional premium. They are not bundled automatically with collision; the insured must elect them. Nor are they confined to the Georgia Automobile Insurance Plan, the assigned risk plan under O.C.G.A. § 40-9-100; O.C.G.A. § 33-34-3.1 lets any insurer offer optional coverages, including loss of use as a separate coverage.

AMandatory coverages required by O.C.G.A. § 40-9-37

BIncluded automatically with collision coverage at no charge

Optional coverages purchased by endorsement

DAvailable only through the Georgia Assigned Risk Plan

Why this is the answer

Georgia compulsory financial responsibility under O.C.G.A. § 40-9-37 only requires bodily injury and property damage liability at 25/50/25. Towing, labor, and rental reimbursement are sold as optional endorsements that the insured may add for an additional premium. They are not bundled automatically with collision; the insured must elect them. Nor are they confined to the Georgia Automobile Insurance Plan, the assigned risk plan under O.C.G.A. § 40-9-100; O.C.G.A. § 33-34-3.1 lets any insurer offer optional coverages, including loss of use as a separate coverage.

Studying for the Georgia Personal Lines exam?

This question comes from our PL bank. Take a free practice test — no signup.

Free PL practice test Personal Lines exam guide