Why Is Car Insurance So Expensive In Georgia?
Higher rates of car theft and auto accidents increase car insurance premiums in Georgia. Additionally, severe weather, like storms and tropical cyclones, lead to car insurance claims, which in turn pushes up rates.
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Car insurance rates have been steadily rising across the United States, and Georgia is no exception. Drivers in the state have been seeing increases in their premiums due to a variety of factors, including higher accident rates, inflation, and rising repair costs.
There may be some relief for drivers in the U.S. as car insurance companies slow down the rate hikes for 2025. Although premiums are still going up, the increases are expected to be smaller than the 17% rise seen last year.
With more than 20 years in the insurance industry, I can provide a deeper understanding of why car insurance rates are rising. Keep reading to learn more about the factors driving up car insurance costs in Georgia.
Key Takeaways
Auto insurers are expected to raise premiums by an average of 7.5% in 2025.
The biggest rate hikes are anticipated from American Family, Allstate, and Liberty Mutual.
In 2023, Georgia saw 1,910,055 traffic crashes, with 7,974 of them being fatal, according to the Georgia Department of Transportation.
Rising economic inflation has increased the cost of various services, including car repairs and medical expenses, which can be a contributing factor in high rates.
One of the best ways to save on car insurance is by comparing quotes from different companies.
Why Is Car Insurance So Expensive In Georgia?
Car insurance in Georgia is expensive due to several factors. Georgia residents face higher car insurance costs due to higher rates of theft and accidents compared to other states. Additionally, Georgia’s population is growing and more people are driving, which results in more traffic accidents and high rates.
Georgia also faces more frequent extreme weather events, such as storms, droughts, and tropical cyclones. These, along with some other factors make Georgia’s car insurance expensive.
Unique Reasons Why Car Insurance In Georgia Is So High
The cost of Georgia car insurance can be attributed to the following reasons as noted below.
High Theft & Accident Rates
Georgia residents face higher car insurance costs due to higher rates of theft and accidents compared to other states. From 1994 to 2021, the state saw a 26% increase in fatalities, contributing to rising premiums.
Additionally, from 2019 to 2021, fatalities per million miles traveled increased by 35.4%. Car theft is also a major concern, with Georgia ranking 10th in the nation for vehicle thefts.
Expensive Auto Repairs
The rising costs of vehicle repairs are another factor driving up insurance premiums. With more advanced technology in vehicles, repair costs have soared. Inflation, along with higher labor costs, has pushed repair prices up by 45% since 2020.
Increase Driving
Georgia’s growing population means more people are on the road. This results in more accidents, insurance claims, and payouts. In 2023 alone, the state recorded 1,910,055 traffic crashes, with 7,974 being fatal, according to the Georgia Department of Transportation.
Uninsured Drivers
Around 12.4% of drivers in Georgia are uninsured, which is slightly below the national average. However, uninsured drivers still contribute to higher premiums for insured motorists, as the cost of accidents involving uninsured drivers is passed on to policyholders.
Severe Weather
Georgia faces more frequent extreme weather events, such as storms, droughts, and tropical cyclones. These events lead to more insurance claims, many of which are costly and unpredictable, causing insurers to raise premiums to cover these risks.
Rising Cost Of Healthcare
Healthcare costs in Georgia have been rising by an average of 6.2% annually, which affects car insurance premiums. When insurance companies need to pay out medical bills following accidents, these increased healthcare costs are reflected in higher premiums for drivers.
Factors Causing Your Car Insurance To Be So High
Several factors can impact the cost of your car insurance. Below are some of the most common ones that can affect your premium.
Vehicle Type
The make, model, and value of your car can significantly affect your insurance costs. High-performance cars or luxury vehicles typically come with higher premiums due to the increased cost of repairs and parts.
Coverage
The type and level of coverage you choose will impact your premium. The more comprehensive your coverage, the higher your rates are likely to be. Customizing your policy with higher limits can lead to increased costs.
Location
Living in cities like Atlanta can raise your insurance rates. Urban areas tend to have higher accident, theft, and vandalism rates, leading to increased insurance premiums compared to rural areas.
Driving Record
A clean driving record, free of accidents, violations, and DUIs, can help lower your insurance costs. Insurers offer discounts for drivers with a history of safe driving.
Age
Younger drivers, particularly teens and those under 25, generally face higher premiums due to their lack of experience on the road. Older drivers, especially those with a good driving history, may enjoy lower rates.
Credit Score
Insurers often consider your credit score when determining rates. A higher score suggests financial responsibility, which could lead to more affordable insurance premiums.
Safety Features & Ratings
Vehicles equipped with advanced safety features or that have high safety ratings might qualify for discounts on insurance premiums, as they are seen as less risky to insure.
Insurance History
A history of continuous coverage with no lapses in insurance can help lower your rates. Conversely, periods without coverage or a record of frequent claims may result in higher premiums.
How To Get Cheaper Car Insurance
In Georgia, there are several ways to lower your car insurance costs by taking advantage of discounts. Here are some common discounts you may qualify for:
Customer Loyalty
Car insurance companies often reward long-term customers with discounts up to 10%.
Good Driver
Georgia law mandates a minimum 10% discount for drivers aged 25 and older who maintain a clean driving record, have no at-fault accidents, and complete a defensive driving course.
Driver Education
Drivers aged 50 or older who complete an approved defensive driving course can qualify for 5% to 10% discount.
Continuously Insured
Drivers who have maintained insurance for at least six months can save on premiums.
Policy Bundling
If you insure multiple vehicles or get different types of policies (like home and auto) from the same insurer, you can earn a discount of up to 12%.
Good Student
Young drivers with a “B” average or higher can qualify for discounts up to 20%
Safety Features
Vehicles equipped with multiple airbags, anti-lock brakes, daytime running lights, and other safety features may qualify for discounts between 2% to 30%.
FAQs
What should I do if my car insurance is too high?
Shop around for quotes from different insurers, compare coverage options, and ask about discounts. Consider adjusting your coverage or deductible to reduce premiums.
Why did my car insurance rate go up?
Your rate may have increased due to factors like a rise in accidents, higher repair costs, changes in traffic laws, or your driving history. In Georgia, factors like high theft rates, weather events, and population density can also contribute to rate hikes.
