Can Family Members Claim Auto Insurance Benefits After an Accident in Georgia? Understanding Household Exclusions and Public Policy

As a Georgia personal injury attorney with over 25 years of experience helping accident victims navigate complex insurance claims, I’ve seen firsthand how confusing auto insurance policies can be—especially when family members are involved. One common scenario: You’re a passenger in a vehicle driven by a relative or another person named on the same insurance policy, and you get injured due to their negligence. Can you make a claim under the policy’s liability coverage? The short answer is yes, but with important limitations tied to Georgia law and public policy. In this post, I’ll break it down based on key Supreme Court rulings and current requirements, so you can better understand your rights.

The Basics: Liability Claims Between Insureds on the Same Policy

Under Georgia law, if you’re injured as a passenger due to the driver’s negligence—and both of you are named insureds on the same auto policy—you can generally file a claim against the insurer for bodily injury under the liability coverage. However, most policies include “family” or “household” exclusion clauses that limit or deny coverage for injuries to relatives or other insureds living in the same home. These exclusions aim to prevent fraudulent or collusive claims within families, but they’re not always fully enforceable.

The key principle here is public policy. Georgia courts have long held that exclusions can’t leave innocent victims unprotected or expose drivers to unexpected liability, especially when mandatory minimum coverage is at stake. This stems from the state’s compulsory insurance laws, designed to ensure financial protection for all road users.

Landmark Cases: Stepho v. Allstate and Southeastern Fidelity v. Chaney

Two pivotal Georgia Supreme Court decisions from 1989 illustrate this:

1. Stepho v. Allstate Ins. Co. (259 Ga. 475, 383 S.E.2d 887 (1989))
   In this case, Stephen Stepho owned a truck insured by Allstate, with a policy excluding liability for injuries to blood relatives in the household. His adult son Saad (a named insured) was driving when his 14-year-old brother Nashwan (a passenger) was injured in an accident. The court ruled the family exclusion invalid up to the mandatory minimum coverage, as it violated public policy by potentially leaving the injured minor unprotected and exposing the driver to unanticipated liability. However, the exclusion could apply to amounts above the minimums. The reasoning? Georgia’s mandatory insurance law prioritizes “complete liability coverage for the protection of the public and the insured.” This holding applies even without intrafamily tort immunity, as the court emphasized protecting victims and avoiding unfair surprises for insureds.
2. Southeastern Fidelity Ins. Co. v. Chaney (259 Ga. 474, 381 S.E.2d 747 (1989))
   Here, Effie Chaney (named insured) was injured as a passenger in her own vehicle while her adult daughter June (also a named insured and resident relative) was driving. The policy’s family exclusion denied coverage, but the court invalidated it to the extent of the minimum limits. The exclusion was broader than Georgia’s tort immunity rules (which don’t apply between emancipated adults), making it contrary to public policy favoring full liability protection. As Justice Weltner wrote, “Because the exclusion in this case is broader than immunity under our tort system, it is against public policy and cannot be enforced.”

These cases establish a clear rule: Family exclusions are unenforceable up to Georgia’s statutory minimums if they conflict with public policy. For coverage beyond those minimums, the exclusion might hold, depending on the policy’s language and specifics of the case.

Georgia’s Current Minimum Liability Requirements

As of 2025, Georgia requires all drivers to carry at least the following minimum bodily injury liability coverage as proof of financial responsibility (O.C.G.A. §§ 40-9-2(5) and 40-9-37):

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

This “25/50/25” standard hasn’t changed in recent years, despite rising medical and repair costs that often exceed these limits. If your claim falls under a family exclusion, you may only recover up to these amounts from the policy—leaving you to pursue excess damages directly from the at-fault driver or through other means, like uninsured/underinsured motorist (UM/UIM) coverage if applicable.

Have There Been Updates Since These Rulings?

Georgia’s public policy on family exclusions remains rooted in these 1989 decisions, with no major Supreme Court reversals or legislative overhauls since 1990. Recent laws, like the 2019 insurance modernization bill (SB 132), focused on broader updates to Title 33 of the Georgia Code but didn’t alter exclusion enforceability. Other developments, such as named driver exclusions (e.g., HB 585 in 2025), allow insurers to exclude specific individuals but don’t directly impact household/family clauses. Always check your policy wording, as courts continue to scrutinize exclusions case-by-case to ensure they align with protecting victims and insureds.

What This Means for You

If you’ve been injured as a passenger in a family vehicle, don’t assume the policy exclusion bars your claim entirely. You may still access the minimum liability benefits, which can cover medical bills, lost wages, and pain and suffering up to those limits. However, insurance companies often deny claims initially, citing exclusions— that’s where an experienced attorney comes in to fight for what you’re entitled to.

At my firm, George C. Creal, Jr. P.C., we specialize in Georgia personal injury and auto accident cases. We’ve helped countless clients recover from insurers who try to hide behind policy fine print. If this sounds like your situation, contact us today for a free consultation. Remember, laws can evolve, so consult official sources or a licensed attorney for the latest advice tailored to your case.