Why Is Georgia Car Insurance So Expensive? An In-Depth Look

June 15, 2024

The High Cost of Car Insurance in Georgia

Georgia is among the top 10 most expensive states for auto insurance, with the average cost for full coverage car insurance being $1,638 per year. Several factors contribute to these high costs, impacting residents across the state.

Reasons for High Car Insurance Costs

Dangerous Highways

Georgia had the fourth-largest number of fatal auto accidents in the U.S. as of 2021. Increased traffic and vehicle miles traveled contribute to the high number of fatal accidents and subsequent claims.

No Cap on Premium Increases

Insurers in Georgia can increase premiums without state approval unless the increase is higher than 10%. This flexibility allows insurance companies to pass on the costs to all policyholders.

Expensive Healthcare Costs

Georgia has some of the highest healthcare costs in the country. Higher healthcare costs translate into more expensive claims for injuries, driving up insurance premiums.

Costly Auto Repairs

Auto repairs in Georgia are among the most expensive in the country. The high cost of repairs leads to higher insurance rates as companies cover these expenses.

Uninsured Drivers

Approximately 12% of Georgia drivers are uninsured. Despite the relatively average rate of uninsured motorists, it still impacts premiums since uninsured motorist coverage becomes crucial.

Severe Weather Risks

Georgia is prone to intense storms, tornadoes, and hurricanes which can cause significant vehicle damage. Insurance companies account for the risk of weather-related claims, increasing premiums.

High Risk of Vehicle Theft

Georgia ranks among the top five states for vehicle thefts. Vehicle thefts typically result in total loss claims, which are costly for insurers and lead to higher premiums for policyholders.

Historical Rate Changes

From 2015 to 2020, car insurance rates in Georgia increased by 16.8%. Rates decreased by 7.7% from 2020 to 2021, resulting in a total increase of 7.8% since 2015.

Strategies to Save on Car Insurance

Comparison Shopping

Compare quotes from multiple insurers to find the best rate.

Bundling Policies

Bundle home and auto policies to save an average of 17%.

Leveraging Discounts

Inquire about possible discounts such as good driver, accident-free, low mileage, and safe car discounts.

Using Comparison Tools

Utilize car insurance comparison tools for efficient rate comparison.

Raising Deductibles

Increase your deductible to lower your premium, keeping in mind the higher out-of-pocket cost in case of a claim.

Pay-As-You-Drive Coverage

Opt for pay-per-mile coverage if you drive infrequently to potentially lower costs.

Despite the high average cost of car insurance in Georgia due to several contributing factors, residents can still find affordable options by deploying strategic measures such as comparison shopping, bundling policies, and taking advantage of available discounts. Understanding these factors and implementing savings strategies can help manage and potentially reduce car insurance expenses.

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