Georgia Legal Guide: Who Is Covered by an Auto Insurance Policy?  

You were in an accident, and it was clearly not your fault. You get the police report and quickly learn that the driver was not the vehicle’s owner or the named insured on the auto policy. Instead of a settlement, you are left with questions.  

Is the at-fault driver covered? What if the driver isn’t covered?  Whose insurance is responsible for paying your claim?  

The omnibus clause, which is the part of an insurance policy for the at-fault driver, will answer many of these questions and put your claim on a path forward. 

Key Points: 

• Georgia auto policies must usually extend liability coverage to persons beyond just the named insured, including certain family members and permissive users, which can significantly expand the insurance available after a crash.​ 
• The omnibus clause generally treats the named insured, a resident spouse, and resident relatives as insureds, often even when they are driving non‑owned vehicles, subject to policy language and exclusions.​ 
• Any person using the insured vehicle with the express or implied permission of the named insured (or spouse) is usually covered. 
• Insurance companies may still dispute coverage by arguing lack of residency, lack of permission, or use outside the scope of permission, but they bear the burden of proving an exclusion applies. 
• Because liability coverage often follows both the car and, in some situations, the driver to non‑owned vehicles, identifying every potentially applicable policy is critical in uninsured and underinsured motorist scenarios. 

The Omnibus Clause and Persons Insured 

An automobile liability insurance policy is a contract between an insurance company and the person named on the policy’s declaration page. 

Georgia law doesn’t allow insurance companies to limit coverage to only that one named person on the declaration page. Under Georgia’s financial responsibility laws (O.C.G.A. § 33-7-9 and O.C.G.A. § 40-9-34), every auto insurance policy issued in our state must provide liability coverage to a broader, “identifiable class of persons” beyond just the policy owner.  

This protection is spelled out in what’s called the “omnibus clause”—a standard provision in every Georgia auto insurance policy that identifies exactly who is covered.  

The omnibus clause creates several categories of insured persons. When you’re trying to recover compensation after an accident, understanding these categories helps you determine whether valid insurance coverage exists and whether you can make a claim on the named insured’s policy. 

The categories of covered individuals are as follows:  

The Named Insured  

This is the person (or business) listed on the declaration page of the policy, i.e. the person who purchased the insurance.   

The Named Insured’s Spouse  

If the named insured is married and their spouse lives in the same household, that spouse is automatically covered, as if they were also named on the policy, even if their name does not appear anywhere on the paperwork.  

Resident Relatives  

Any relative of the named insured who lives in the same household is covered. This typically includes children (even adult children living at home), parents, siblings, or other family members who share the residence.  

Permissive Users  

Any person using the insured vehicle with either express permission (clear, direct approval) or implied permission (circumstances suggesting the owner would have agreed) from the named insured or their spouse is covered.  

Vicariously Liable Parties  

Anyone who might be legally responsible for the actions of one of the covered persons listed above is also insured. For example, if a teenager causes an accident while driving the family car, the parents could be held vicariously liable, and the insurance covers them too.  

What Does the Omnibus Clause Mean for Your Claim? 

When you’re injured by another driver, you need to know that valid insurance coverage exists to compensate you for your medical bills, lost wages, pain and suffering, and other damages. Insurance companies sometimes try to escape paying claims by arguing the driver who caused your accident wasn’t covered.  

This becomes especially important in underinsured or uninsured motorist (UIM/UM) situations. Your own insurance company might try to deny your UIM/UM claim by arguing that the at-fault driver actually had valid coverage under someone else’s policy through the omnibus clause. Or conversely, you might discover that a driver you thought was uninsured actually qualifies as an insured person under their family member’s or friend’s policy.  

Hypothetical Example: Whose Insurance Pays for Sasha’s Accident? 

Sasha was driving home from her nursing job at Northside Medical Center in Roswell when another car ran a red light on Northmeadow Parkway and T-Boned her car. She suffered a concussion, whiplash, and a fractured wrist that required surgery.  

The driver who caused the accident was a 24-year-old named Jaxson. When Sasha’s attorney investigated, they discovered that Jaxson was driving his father’s SUV.  

The vehicle was insured under a policy with Jaxson’s father, Michael, listed as the named insured. Jaxson’s name didn’t appear anywhere on the insurance policy, and he no longer lived at his father’s address. 

The insurance company initially tried to deny Sasha’s claim, arguing that Jaxson wasn’t covered because he wasn’t a resident of his father’s household. However, he was using his father’s vehicle with permission. Michael had allowed Jaxson to borrow the SUV to move some furniture that weekend.  

This express permission meant Jaxson qualified as a “permissive user” under the omnibus clause. As a result, Sasha was able to pursue her claim under Michael’s policy and recovered compensation for her medical expenses, lost income for the time she had to take off work, and her pain and suffering.  

Does Coverage Follow the Driver?  

Yes, liability coverage follows some insured persons when they use vehicles that are not their own. The omnibus clause can provide coverage for the named insured, their resident spouse, and resident relatives when driving a “non-owned” vehicle. 

For example, if the named insured borrows a friend’s car to run errands and causes an accident, their own auto insurance policy may provide coverage even though the accident didn’t involve their own vehicle. This creates a potential additional source of compensation for accident victims beyond just the vehicle owner’s insurance.  

When you’re dealing with an underinsured motorist situation, this “non-owned vehicle” coverage can be crucial. The at-fault driver might have their own insurance policy that covers them even when driving someone else’s car, giving you another avenue for recovering compensation outside of the vehicle owner’s policy. 

When Can Insurance Companies Avoid Covering “Insured Persons”?  

Even with Georgia’s strong omnibus clause protections, insurance companies sometimes look for ways to limit or deny coverage. They might argue:  

• The driver wasn’t really a “resident” of the named insured’s household  
• The driver didn’t have actual permission to use the vehicle  
• The driver was using the vehicle outside the “scope” of the permission granted  

However, Georgia law recognizes that insurance companies can waive these policy conditions through their conduct. For instance, if an insurer has been accepting premium payments knowing that a person doesn’t technically meet the residency requirement, they may have waived their right to deny coverage based on that technicality.  

Do not take an insurance company’s denial of coverage at face value. An experienced attorney can investigate whether the insurer’s position is actually correct under Georgia law or whether they’re trying to avoid their legal obligations.  

What Should You Do If the Insurance Company Denies Your Claim Based on Who Was Driving?  

If you’re injured in an accident and the at-fault driver’s insurance company claims there’s no coverage because of who was driving, don’t give up.  

First, remember that Georgia law specifically requires broad coverage through the omnibus clause. The insurance company has the burden of proving that the driver wasn’t covered, you don’t have to prove that they were.  

Second, examine the relationship between the driver and the vehicle owner. Was the driver a spouse, relative, or household member? Did they have any kind of permission to use the vehicle?  

Third, consider whether there might be other applicable insurance policies. Remember that coverage can follow certain insured persons to non-owned vehicles, so there might be insurance beyond just the policy on the vehicle that hit you.  

A car accident attorney familiar with Atlanta area insurance companies and policies can handle this on your behalf. They can review the available policies and who is responsible for paying for your injuries.