In 2023, Georgia experienced a notable increase in car insurance rates, with a significant 22% rise compared to 2022. This escalation surpassed the increases seen in over 30 other states, highlighting a unique financial strain for Georgia’s motorists. The average annual premium for full coverage in Georgia, which was $1,617 in 2022, jumped to $1,973 in 2023.
This marked increase is attributed to several factors, including a higher number of accidents, more extensive property damage and medical claims, and an increase in car thefts and break-ins. Georgia’s increase in traffic fatalities also played a critical role in the surge of insurance premiums.
From 1994 to 2021, fatalities in the state rose by 26%, with a sharp 35.4% increase in fatalities per million miles traveled observed from 2019 to 2021. These statistics, reflecting a growing trend in road accidents, have necessitated larger payouts from insurers, thereby contributing to the rising premiums.
Additionally, the cost of auto repairs and maintenance has seen a significant uptick, with a 21.4% increase between 2019 and 2022 according to the US Bureau of Labor Statistics. This rise in repair costs, coupled with the high number of vehicle thefts — Georgia ranks 10th in the country for most car thefts — adds to the factors influencing insurance rates.
In response to these challenges, recent legislative actions in Georgia aim to provide some regulatory oversight on insurance rate increases. House Bill 221, effective from July 1, grants the Georgia Insurance and Safety Fire Commissioner the authority to review all car insurance rate filings before they go into effect.
This bill seeks to close a loophole previously exploited by insurers to increase rates significantly, sometimes by as much as 25% in a single filing. Despite these regulatory efforts, industry predictions suggest that the average annual car insurance rate in Georgia might continue to rise, potentially reaching $1,895 in 2023, as forecasted by Insurify’s report on auto insurance trends. This continued upward trend indicates that Georgia drivers may face further hikes in their insurance premiums in the foreseeable future.
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