Legal Question in Insurance Law in Georgia

Insurers are notorious for burying language in the fine print that allows them to avoid coverage when the insured thought that he/she was covered. Georgia is a mandatory auto insurance state. Appellate caselaw says that even if the insurer contends that there is no coverage under an automobile liability insurance policy, the law imposes an obligation on the liability insurer to provide the minimum limit coverage mandated by law to the innocent damaged party. In my view your insurer should have paid this claim and then tried to collect back from you. While that may sound like the same thing as what you are experiencing, it is not. The amount in question ($7500) is not high enough to justify litigation because the cost of getting an attorney would probably exceed that. The best thing for you is to try to work out a deal, The insurer will probably take less than the full amount. Negotiate with them. Good luck.

The insurer may or not be correct as your exclusion. But if they are, you owe the $7500. You'd either need to cut your best deal or have your license suspended. If you can't pay, a bankruptcy likely would erase the debt and protect your license.