Auto insurance rates have gone up significantly in Georgia, with the average full coverage premium jumping from $1,617 per year in 2022 to $1,973 annually this year. This represents a 22% increase, which is higher than the rate hike in 30 other states.
One of the main reasons for the increase in rates is the rise in accident rates in Georgia. Even minor accidents can result in significant payouts for property damage and medical claims, making insurers charge higher premiums to cover the cost. According to data from the National Highway Traffic Safety Administration (NHTSA), Georgia saw a 35.4% increase in traffic fatalities per million miles traveled between 2019 and 2021.
Car theft is another costly source of claims payouts for insurers. Georgia ranks 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.
The cost of car repairs has also gone up substantially across the entire country, according to data from the U.S. Bureau of Labor Statistics (BLS). The CPI for auto repairs and maintenance increased by 21.4% between 2019 and 2022, leading to an increase in the cost of repair claims and adding significantly to the total cost of claims payouts for insurers.
Unfortunately, due to continued inflation and the persisting factors driving the increase in insurance rates, it is unlikely that Georgia drivers will see any significant fall in premiums in the near future. Drivers will have a clearer picture of the state of the auto insurance industry when reliable data on accident rates, property crimes, and other sources of damage for 2023 starts to come in.