Managing your budget with Georgia auto insurance rates can be challenging. Georgia car insurance rates are among some of the highest in the nation, making it difficult for some drivers to navigate finances. You may be wondering, “Why is my car insurance rate so high in Georgia?” That’s a question worth exploring to determine if there are ways you can mitigate the expense.
Exploring Georgia’s Skyrocketing Rates
Georgia drivers have seen an increase in rates in the last several years. The cost of car policy rates has continued to skyrocket since about 2014 compared to the national average. Between 2014 and 2022, auto policy costs increased by 5.6%, while the national average increased by only 3.3%.
A Comparison to National Averages
You might be wondering about the secret behind Georgia having such high insurance rates. As you’ve probably figured out, Georgia has one of the highest car coverage rates in the country. It ranks 47th in terms of affordability, meaning there are only four other states that are more costly.
Georgians spend about 2% of their household income on auto policies alone. Nationally, drivers spend 1.5%.
Just in the last two years, Peach State drivers have seen a 21% increase in the cost of full-coverage insurance.
Navigating the Complex Terrain of Car Insurance Pricing
There are various factors at play that cause the auto rates to be higher in Georgia. Obviously, points on your driving record will affect rates. However, other factors, like inflation, rising replacement costs, high-risk driving behavior, and numerous cases of claim litigation abuse are common in every state. However, the Peach State has been hit harder on all these fronts.
Key issues that drive costs higher in Georgia include the number of underinsured motorists and injury claims.
The Road Specifics: Georgia’s Unique Insurance Landscape
When people are hit with economic pressure, such as inflation and rising costs, they may opt to not purchase auto coverage or be underinsured. This results in added costs for those who are insured. If an accident occurs with one of these uninsured or underinsured drivers, it costs everyone money.
Drivers are either forced to pay for damages themselves or attempt to recoup the money from the other driver. Premiums rise due to the additional claims and because many drivers add uninsured/underinsured coverage to their policies.
Is Atlanta the Only Reason for High Insurance Rates?
Atlanta is a large metropolitan area, which commonly has more traffic, wrecks, vandalism, and auto theft. Most large cities have more crime than less populated places. Georgia ranks ninth in the number of vehicles reported stolen. In fact, in 2022-2023, 28,171 cars were reported stolen.
However, even though living in Atlanta is a contributing factor to drivers paying more for their auto policies, it’s not the only factor. Other issues like road conditions, accident rates, and injury litigation play a part in the overall cost. Even your car’s make and model can impact auto insurance.
Legislative and Legal Factors in the Peach State
Legislative and legal factors play a part in rates in the Peach State. Some insurers are beginning to use data about driver behavior. This can provide relevant information for insurers about rates. However, some data may be collected without the drivers’ knowledge.
Additionally, a new law went into effect that gives the state insurance commissioner the power to review rate filings before they go into effect.
The Geographic Influence on Insurance Expenses
A state’s location and geography can play a part in the overall policy costs. Georgia is located en route to Florida, a favorite vacation destination. This means additional traffic passes through the Peach State, increasing the risk of accidents. Other geographical influences include the following:
- Urban areas, leading to congestion and risk of accidents. With Atlanta being a busy hub of activity, accidents are bound to happen more frequently here.
- More congested traffic areas, which involve a high number of vehicles on the road.
- Crime hotspots. Places that have a high number of auto thefts and vandalism will result in higher premiums.
- Weather patterns in the Georgia area. These include hailstorms, heavy downpours, flooding, and potential hurricane activity near the coastal areas.
- Rise in litigation, which increases the rates. Unfortunately, Georgia has a high litigation rate in several areas, which boosts the overall state’s premium.
Can Drivers Take the Wheel? Strategies to Lower Car Insurance
You may be wondering how to get cheap car insurance in Georgia. Drivers who are concerned about the rising cost of car policies can file complaints or express their concerns to several organizations and authorities:
- State Insurance Department: Phone: (800) 656-2298
- Consumer Financial Protection Bureau (CFPB) Website: Consumer Financial Protection Bureau
- Better Business Bureau (BBB): Website: Better Business Bureau
- National Association of Insurance Commissioners (NAIC): Website: National Association of Insurance Commissioners
- Elected officials such as state legislators