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Georgians are paying an average of $30 per month more in 2023 than in 2022 — our team found out why rates rose

Just like it did in most states across the country, car insurance rates took a big jump up in Georgia over the last year. The average full coverage premium increased by 22% from 2022 to 2023 in the Peach State. That increase amounts to an average of $356 more for auto coverage per year, adding significantly to the cost of owning a car.

Why Auto Insurance Rates Increased So Much in Georgia

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.

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.

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.

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.

Georgia Drivers May See Rates Increase Again in 2024

The added expense of higher car premiums may be a significant burden for many Georgia drivers. But it’s unlikely that those rates will start to fall in the near future.

Due to continued inflation, many of the elements listed above that have driven this latest increase in insurance rates have yet to subside. While the rate of inflation has begun to decrease, many of the costs that insurance companies take into account continue to go up. Other factors, such as the market rates of used cars upon which total loss payouts are based, are also at near-record highs.

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. However, for now, higher auto insurance premiums in Georgia seem likely to be the new normal for drivers in the state.