Why Is Auto Insurance So Expensive in Georgia?

There are several factors contributing to expensive auto insurance in Georgia.

Examples of these factors include expensive car repairs, limitless premium hikes, and an increased likelihood of weather-related incidents and car theft.

Despite the generally high rates, residents of Georgia can find affordable auto insurance by comparing quotes from different providers online.

An image illustrating why auto insurance is so expensive in Georgia
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Why is Auto Insurance So Expensive in Georgia?

The high cost of car insurance in Georgia is attributed to several factors:

Busy and Hazardous Roads

The state’s roads are among the busiest and most perilous, leading to higher insurance premiums.

Specifically, Georgia’s dangerous highways correlate with expensive auto insurance premiums due to a substantial number of fatal accidents.

In 2021, Georgia ranked fourth in the nation for fatal car accidents. Additionally, the state experienced a 14.2% increase in vehicle miles traveled from June 2020 to June 2021.

Lack of Regulation on Premiums

Georgia does not require state approval for most premium increases, thereby resulting in unchecked rate hikes.

Without a cap on premium increases, insurers in Georgia can raise rates by up to 10% without oversight, affecting all policyholders.

This is compounded by the state’s expensive healthcare costs, which inflate both car and health insurance premiums.

When accidents occur, the high cost of medical care leads to larger payouts by insurers, prompting them to raise rates.

Steep Medical and Repair Bills

The state faces some of the most expensive healthcare and auto repair costs in the U.S., which insurers pass on to consumers.

Auto repair expenses, although improved since 2020, remain high. Insurers therefore offset these costs through higher premiums.

In the case of accidents involving multiple vehicles, a single claim can lead to payouts for several repairs, further driving up rates.

High Number of Uninsured Motorists

Despite relatively lower rates, Georgia has a significant uninsured driver rate.

This highlights the importance of uninsured motorist coverage for protection against such incidents

With an approximately 12% of the driving population, means that those with insurance coverage often pay more to offset the risk and costs associated with collisions involving uninsured motorists.

While uninsured motorist coverage is optional in Georgia, it offers protection against such scenarios.

Extreme Weather Conditions

Georgia’s susceptibility to extreme weather conditions, such as severe storms, tornadoes, and hurricanes, often results in significant vehicle damage. Insurance providers cover these damages under comprehensive plans.

Events like floods and tornadoes can lead to a vehicle being declared a total loss, which incurs substantial costs for insurers.

Consequently, even those without full coverage may experience premium increases as insurers adjust to offset the financial impact of these expensive claims.

High Car Theft Rates

Additionally, Georgia’s high vehicle theft rates, ranking among the top five states, contribute to higher insurance costs.

The likelihood of theft leading to a total loss of the vehicle translates to considerable expenses for insurance companies.

This risk is reflected in the premiums of all policyholders, as insurers distribute the cost of theft-related losses across their customer base.

What are the Auto Insurance Costs in Georgia?

On average, Georgia drivers pay $977 annually for minimum coverage or $81.42 monthly.

For full coverage, the average cost is $1,638 yearly or $136.50 monthly.

Between 2015 and 2020, Georgia’s car insurance rates rose by 16.8%.

However, rates saw a 7.7% decrease from 2020 to 2021, leading to an overall increase of 7.8% since 2015.

Ways to Cut Costs on Auto Insurance in Georgia

Finding affordable car insurance in Georgia can be challenging, but it’s not impossible. Here are some strategies to help you lower your premiums:

  1. Compare Rates: Shop around and compare insurance quotes from various providers to ensure you’re getting the best deal.
  2. Bundle Policies: You can save an average of 17% by bundling your home and auto insurance with the same company.
  3. Seek Out Discounts: Ask about discounts for which you may be eligible, such as those for safe driving, being accident-free, low mileage, and vehicle safety features.
  4. Use Comparison Tools: Utilize car insurance comparison tools to quickly find the most cost-effective policies.
  5. Adjust Your Deductible: Consider increasing your deductible to reduce your premium, but remember that this means you’ll pay more out-of-pocket if you make a claim.
  6. Pay-Per-Mile Insurance: If you’re a low-mileage driver, consider pay-as-you-drive insurance to save money by paying only for the miles you drive.

What is the Cheapest Auto Insurance in Georgia?

On average, Country Financial provides the most affordable car insurance rates for drivers in Georgia.

A minimum liability policy averages $373 annually, while a full-coverage policy costs an average of $1,553 per year.

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