Why is Car Insurance So Expensive in Georgia?

Car insurance in Georgia costs significantly more than the national average. Drivers in Georgia pay approximately $4,689 per year for full coverage car insurance or $1,997 per year for minimum coverage, according to WalletHub.

This is much higher than the national averages of around $2,000 annually for full coverage and about $700 per year for minimum coverage.

So why exactly is car insurance so expensive in the Peach State? There are several factors unique to Georgia that cause rates to be higher.

Top 5 Reasons Car Insurance Costs More in Georgia

1. Georgians drive more miles

People in Georgia are driving more miles each year. More time on the road means more potential for accidents, claims, and insurance payouts.

For example, there were approximately 1,377 fatal crashes in Georgia in 2020, compared to 1,329 in 2015, according to the Governor’s Office of Highway Safety. More claims and payouts cause insurers to raise rates.

2. Vehicles today cost more to repair

New cars come loaded with expensive technology and features. A minor fender bender that once caused just a few hundred dollars in damage may now result in a multi-thousand dollar repair bill.

A National Association of Insurance Commissioners study found that the average cost to repair a vehicle was about 8% higher in 2018 than in 2014. Pricier repairs mean pricier premiums.

3. High rate of uninsured drivers

As insurance costs go up, more Georgia drivers take the risk of driving without coverage. In 2019, 12% of Georgia drivers lacked even minimum liability insurance, according to the Insurance Research Council.

When uninsured motorists cause accidents, insured drivers pay the price through higher premiums. Insurers have to raise rates to account for these losses.

4. Rising healthcare costs

Car insurance rates are heavily impacted by medical claims. But healthcare costs in Georgia are rising rapidly, going up an average of 6.2% each year, according to the Center for Medicare and Medicaid Services.

As medical bills get more expensive, car insurers have to charge higher premiums to keep up.

5. Increased severe weather

Severe storms, tropical cyclones, hail, floods and other weather events are becoming more frequent and intense in Georgia.

This weather causes a spike in claims, which tend to be less predictable and more costly for insurers. As a result, companies need to raise premiums to cover higher losses.

Other Factors That Make Car Insurance More Expensive in Georgia

Aside from those statewide factors, there are some additional things that can make your personal policy more costly, even if you have a good driving record.

Age

Insurers charge higher rates for teen drivers under 25 and elderly drivers over 65, since they are statistically more likely to be involved in accidents.

• In Georgia, a 16-year-old pays an average of $4,508 per year.
• A 25-year-old pays around $1,112 per year.
• Drivers over 65 pay approximately $874 per year.

Where you live

If you reside in a densely populated metro area like Atlanta, you’ll generally pay more than someone in a rural area. More drivers and traffic in cities mean a higher accident and claim frequency.

Some of the most expensive locations for car insurance in Georgia include:

• Lithonia
• Stone Mountain
• Candler-McAfee

How much you drive

Insurers look at your annual mileage when pricing your policy. Long commutes or high mileage will increase your rates.

Credit score

Drivers with poor credit pay significantly more for car insurance in Georgia. Those with no credit pay about 70% more than drivers with excellent credit, according to WalletHub data.

Lapses in coverage

Letting your auto insurance policy lapse can cause insurers to slap you with much higher rates when you go to get coverage again. Maintaining continuous coverage proves you’re a responsible insured.

How to Get Cheaper Car Insurance in Georgia

While some factors affecting your rates are out of your hands, there are still plenty of ways to save on Georgia car insurance:

• Shop around – Compare quotes from at least 3 insurers when your policy is up for renewal. New companies enter the market all the time and may offer better rates.

• Ask for discounts – Make sure you’re getting all the car insurance discounts you qualify for, like good driver, good student, defensive driving course completion, multi-policy, and more.

• Drop unnecessary coverage – Consider dropping comprehensive and collision coverage on older cars worth less than $3,000. The premiums may cost more than the car is worth.

• Raise deductibles – Increasing your deductible from $500 to $1,000 can lower your rates substantially. Just be sure you have savings to cover the higher out-of-pocket costs if you file a claim.

• Improve your credit – Pay bills on time, lower balances, and dispute any errors on your credit report to help raise your credit score.

• Enroll in telematics – Insurers offer discounts for sharing your driving data through an app or device. Safe driving can be rewarded with significant monthly or annual savings.

• Maintain coverage – Don’t allow your policy to lapse when switching companies or during financial hardship. Gaps in coverage will send your rates soaring.

• Ask about discounts – Make sure you’re taking advantage of every possible discount your insurer offers, like safe driver, low mileage, paid-in-full, good student, defensive driving course completion, affinity group, and more. Every little bit helps!

With Georgia’s high premiums, it pays to shop around regularly for the best rate. Comparing insurance quotes every 6-12 months when your policy is up for renewal can potentially save you hundreds of dollars a year.

Frequently Asked Questions

How much is minimum coverage car insurance in Georgia?

Minimum liability coverage in Georgia is:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $25,000 property damage

The average annual cost for minimum coverage in GA is around $1,997.

Why did my Georgia car insurance go up?

Some common reasons your Georgia car insurance may have increased:

• You had an accident, claim or traffic violation that’s now appearing on your record
• You moved to a more densely populated area
• You added a teen driver to your policy
• You purchased a new vehicle that costs more to insure
• You let your coverage lapse for a period of time
• General rate increases across the state

How can I lower my car insurance in Georgia?

To reduce your premiums in Georgia:

• Shop around and compare quotes frequently
• Ask about bundling discounts for insuring home and auto together
• Take a defensive driving course for a discount
• Raise your deductible
• Reduce unnecessary coverage like rental car reimbursement
• Enroll in telematics to have your safe driving habits rewarded

What are the cheapest cities for car insurance in Georgia?

Some of the cheapest cities for car insurance in Georgia are:

• Albany
• Warner Robins
• Dalton
• Gainesville
• Douglasville

Rural areas and smaller towns generally have lower premiums than major cities like Atlanta.

How much is car insurance for a 16 year old in Georgia?

In Georgia, the average annual car insurance cost for a 16-year-old driver is around $4,508. Teen rates are very high due to the increased risk of crashes.

To save money, have your teen take a driver’s education course and maintain a B average in school for a good student discount. Also consider putting your teen on your policy rather than purchasing their own policy.

When do car insurance rates go down in Georgia?

Car insurance rates start decreasing around age 25 in Georgia, as drivers gain more experience behind the wheel. Rates continue to gradually decline until around age 65, when they start increasing again due to higher risks for elderly drivers.

Young drivers under 25 see the steepest auto insurance rates. But maintaining a clean driving record can help teens save money on car insurance as they enter their 20s.

The Bottom Line

Georgia drivers pay some of the highest car insurance rates in the nation, more than double the national average. Costs keep climbing each year too, as risks and claims in the state rise.

But understanding all the factors that impact your premiums can help you find ways to lower your rates through comparison shopping, maintaining coverage, earning discounts, and being a safe, responsible driver.

While base rates are high in Georgia, you may still be able to reduce your bill by hundreds of dollars per year through smart policy decisions.