Why Are Auto Insurance Rates in Georgia Expensive?

If you live in Georgia, you’re probably aware that the state has significantly high rates for auto insurance. It’s because the state has accident-prone highways and routes with a considerably high percentage of car crashes.

Georgia insurance companies have the right to increase premiums without seeking approval from the insurance commissioner of the state. This is the reason auto insurance rates in Georgia are relatively higher than in other states.

You may have to pay around $1,660 annually for full insurance coverage or $690 for minimum coverage for your car in Georgia. The national average for full coverage is no more than $1,500 per year. As the insurance cost increases, the charges of premium insurance also go up.

Plus, insured drivers have to share rising insurance costs. This increases insurance rates whenever an insurer renews your policy, regardless of individual factors, such as location or driving record.

Here, we’ve listed some reasons explaining why auto insurance increases annually in Georgia.

Why Auto Insurance is Expensive in Georgia

Higher Number of Drivers

Georgia has a high rate of drivers, resulting in more car crashes, claims, and rising premiums.

This might sound bizarre to you, but the state has around 1,600 fatal car accidents each year.

 High Cost of Auto Repairs

The reason behind expensive car repairs in Georgia is the high-end repair parts. The average cost of auto repairs in the state was around $966 in 2016. Since vehicles today come with hi-tech features, it has increased the cost of auto repairs.

Uninsured Driving

Many people in the state drive uninsured due to the increasing insurance costs. A survey found that 12 percent of Georgia drivers only have the minimum liability insurance. This cost of uninsured drivers passes on to people via rising premiums.

High Rates of Healthcare

Georgia has higher rates for healthcare facilities. Car insurers have to pay a huge amounts to compensate for medical bills. The cost for healthcare increases by an average of 6.5 percent annually in Georgia.

Severe Climate Conditions

Georgia has a severe climate. It experiences severe weather conditions like tropical storms, droughts, and flooding. These events cause insurance companies to have to pay more money during the claims process. As a result, they raise insurance rates to manage things.

Other Tips

Keep in mind that many things affect car insurance costs in Georgia. Though you can’t control them all, you can focus or be cautious about contributing factors. For instance, you can drive safely, obey traffic laws, and keep a clean driving record to keep your auto insurance cost down.

It is always better to assess and compare the rates of three to four insurance companies to try to save. Ideally, check the rates at least twice a year when renewing your policy.

Summing Up

In a nutshell, Georgia has higher auto insurance rates due to the high cost of healthcare facilities, a high number of drivers, expensive car repairs, and harsh weather. Thus, controlling them is possible if you vigilantly compare the rates and keep your driving record clean.


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