In Georgia, car insurance rates went up a lot over the last year, just like they did in most other states. The average full coverage premium increased by 22% from 2022 to 2023 in the Peach State. This raise means that people will pay an average of $356 more a year for car insurance. This makes owning a car a lot more expensive.
Georgia drivers face some of the highest car insurance rates in the nation. On average, Georgia motorists pay over $1,900 per year for basic liability coverage and around $4,700 annually for a full coverage policy. This is significantly more than the national averages.
There are several key factors that contribute to the lofty auto insurance costs in the Peach State:
High Rate of Accidents and Fatalities
Georgia has an above-average rate of vehicle accidents and fatalities compared to other states. According to the National Highway Traffic Safety Administration (NHTSA), there were 1,491 motor vehicle crash fatalities in Georgia in 2020. That equals a rate of 1.26 fatalities per 100 million vehicle miles traveled, which is higher than the national rate of 1.13.
More accidents means more claims filed with insurers, which leads to higher premiums. Georgia also has a high incidence of factors like distracted driving and drunk driving that contribute to crashes.
Auto Thefts and Vandalism
Georgia ranks among the top 10 states for auto thefts, with metro Atlanta accounting for the majority. Over 26,500 vehicle thefts were reported statewide in 2021. This is up significantly from prior years.
Insurers must cover theft and vandalism damage under comprehensive policies, another factor boosting premiums. Georgia’s auto crime rate exceeds the national average.
Litigious Environment
Georgia is considered to have a highly litigious legal environment. Car accident victims are more prone to pursue legal action and file lawsuits to receive compensation. Jury awards and settlement payouts also tend to be higher.
This results in more expensive claims for insurers, especially involving severe injuries and medical treatments They pass these costs along through higher liability rates
PIP Laws and Handling Fraud
Georgia has mandated no-fault personal injury protection (PIP) coverage for all drivers. This pays medical bills after accidents regardless of fault. While intended to help consumers, it also led to widespread fraud and abuse.
Insurers incurred significant costs dealing with fraudulent claims. Tougher regulations have helped, but high uninsured motorist rates still drive up premiums.
Fair Access to Insurance Requirements (FAIR)
Georgia’s FAIR plan requires insurers to cover high-risk drivers who can’t obtain policies in the voluntary market. But this also spreads the risk and claims costs across all policyholders.
Many insurers end up substantially hiking rates for standard market consumers to account for high-risk exposure under FAIR.
Natural Disasters
Being located in the Southeast, Georgia sees its fair share of costs from storms, floods, and other disasters. While less than hurricane-prone states like Florida, rebuilding and repairs still add claims costs passed to policyholders through premiums.
Rate Deregulation
Georgia deregulated auto insurance rates in 2015. This gave insurers more freedom to raise rates without approval from the state Department of Insurance. Many hiked premiums aggressively after this policy change.
Limited state oversight enables excessive rate increases and reduced competition in pricing. Consumers ultimately pay the price.
Rising Accident Costs
Not only are accidents more frequent in Georgia, but the cost per accident has also been rising steadily. Increased medical costs, larger payouts for pain and suffering, more expensive vehicle repairs, and climbing rates for rental cars while damaged vehicles are in the shop are all inflating the cost of claims.
With pricier settlements and payouts per accident, insurers hike premiums across the board to cover higher anticipated costs.
Urbanization and Congestion
Metro Atlanta continues to grow at a rapid pace. More drivers on increasingly congested roads equals more accidents and claims. High-risk urban areas like Atlanta pull up Georgia’s overall premium rates.
Densely populated cities also see more cars stolen or vandalized. And parking lot fender benders are commonplace.
No Public Auto Insurance Option
Some states have public or quasi-public car insurance options that increase market competition and help lower rates. But Georgia has no state-run insurance, which might help control costs through lower overhead expenses.
This lack of a public option limits pricing alternatives for consumers. Private insurers dominate the market and dictate higher premiums.
Car Theft Is Still a Big Problem in Georgia
Thefts are another costly source of claims payouts for insurers. A lot of the time, cars are damaged when they are stolen and are often damaged a lot or even totaled afterward. In some cases, cars are never found and are written off as a total loss.
Car theft is a bigger problem in Georgia than in most other states. According to data from the Insurance Information Institute (III) Georgia ranked 10th in the country for most car thefts — with 26,238 in 2022. The high rate of car theft in the state has likely been a factor in the state’s insurance premium increases.
Accident Rates in Georgia Are Going Up
Car accidents are the largest source of claims for auto insurers. Even seemingly-minor ones can result in large payouts for property damage and medical claims. That means that when accident rates go up, car insurance premiums are likely to go up with them.
In Georgia, accident rates have gone up significantly in the past several years. Between 2019 and 2021, there was a 35.4% increase in traffic fatalities per million miles traveled in Georgia, according to data from the National Highway Traffic Safety Administration (NHTSA). This has meant more payouts for insurers, which companies tend to cover by charging higher premiums.
Why is auto insurance so expensive in Georgia?
FAQ
What is the average car insurance cost in Georgia?
Did GA car insurance go up?
Why is car insurance so expensive all of a sudden?
Which state is more expensive for car insurance?
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Top 10 most expensive states for car insurance
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Top 10 cheapest states for car insurance
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California: $2,416
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Vermont: $1,319
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Colorado: $2,337
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Ohio: $1,417
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South Dakota: $2,280
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Idaho: $1,428
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Michigan: $2,266
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Virginia: $1,469
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Why is Georgia car insurance so expensive?
Georgia car insurance rates are higher than average, even if they aren’t as expensive as some other states. There are several reasons why car insurance is so costly in Georgia, including the states, dangerous and busy roadways, lack of premium regulation, high healthcare costs, expensive repairs and a relatively high rate of uninsured drivers.
Are car insurance prices rising in Georgia?
Matt Dunigan and his team set up their big barbecue road show – bringing love, laughs… GEORGIA — Nationally, the U.S. Bureau of Labor Statistics showed vehicle insurance prices rose 19.2% from October 2022 to 2023. In Georgia, a new study by MarketWatch showed that Peach State Insurance rose more, increasing 22% from 2022.
Are You overpaying for car insurance in Georgia?
Reference our editorial standards or learn more about how we make money. Car insurance in Georgia costs $1286 for a 6-month policy — 18% more expensive than than the national average rate. According to our data, 40% of drivers in Georgia believe they are overpaying for car insurance.
Does Georgia have low-cost car insurance?
From 2015 to 2020, Georgia car insurance rates increased by 16.8%, but rates decreased from 2020 to 2021 by 7.7%, resulting in a total increase since 2015 of 7.8%. Despite it being so difficult to find low-cost car insurance in Georgia, drivers don’t have to settle for high premiums.