Georgia has several bad faith routes in a car crash case, and they aren’t interchangeable. Which one applies depends on whose policy it is and what kind of loss.
| Route | Who | Trigger | Possible added amount | Source |
|---|---|---|---|---|
| Own policy | Insured, against own insurer | Refusal within 60 days of demand, in bad faith | Up to 50 percent of the loss or $5,000, whichever is greater, plus fees | O.C.G.A. § 33-4-6 |
| Other driver's insurer, property damage only | Claimant | Written offer, 60 days, then recovery at or above it | Same, plus fees | § 33-4-7 |
| Uninsured motorist | Insured | Refusal within 60 days and a bad faith finding | Up to 25 percent or $25,000, whichever is greater, plus fees | § 33-7-11(j) |
| Failure to settle within limits | Insured | Rejecting a reasonable within-limits offer | Excess judgment | Southern General v. Holt (1992) |
The last route needs care. In Holt, the Georgia Supreme Court recognized the insurer’s duty to its own insured when a claimant offers to settle within the policy limit. The injured person doesn’t own that claim unless the insured assigns it. Cotton States v. Brightman (2003) deals with an insurer that needs another insurer’s money to settle.
Georgia also regulates how those offers work. A pre-suit offer prepared with a lawyer’s help in a motor vehicle case follows § 9-11-67.1, including at least 30 days to respond. SB 83 (2024) added a safe harbor for a recipient that agrees to the material terms and pays the limits or demand amount, for offers from July 1, 2024.
A slow adjuster isn’t automatically bad faith. A reasonable dispute over value or fault is a defense. Under § 33-4-6 and § 33-4-7, a plaintiff must also mail the Commissioner of Insurance a copy of the demand and complaint within 20 days of suing.
General information about Georgia law as of November 2026. It is not legal advice and does not create an attorney-client relationship.