In 2022, the average full coverage premium in Georgia was $1,617 per year. This year, it jumped to $1,973 annually. The 22% increase over the year is more than drivers in 30 other states saw.
Car coverage rates rose around the country due to increases in many of the expenses and risk factors that auto insurance providers use to calculate premiums. However, rates increased in Georgia more than in other states for a few reasons specific to the state.
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Accident Rates in Georgia Are Going Up
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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.
Car Theft Is Still a Big Problem in Georgia
Thefts are another costly source of claims payouts for insurers. Cars are often damaged in the process of being stolen, and in many cases, damaged significantly or even totaled in the aftermath. In some cases, cars are never found and are written off as a total loss.
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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.
Automotive Repairs Have Gotten More Expensive Everywhere
When cars are damaged in an accident or from other sources such as natural disasters or theft, insurance providers foot the bill for repairs. And over the last several years, the cost of car repairs has gone up substantially — not just in Georgia, but around the entire country.
According to data from the U.S. Bureau of Labor Statistics (BLS), which tracks the consumer price index (CPI) of various goods, services and other expenses, the CPI for auto repairs and maintenance increased by 21.4% between 2019 and 2022. This increase means that the cost of repair claims has also gone up, adding significantly to the total cost of claims payouts for insurers.
Source: https://t-tees.com
Category: WHY
