Georgia car insurance prices rose more than 30 other states in 2023, study says

GEORGIA — Nationally, the U.S. Bureau of Labor Statistics showed vehicle insurance prices rose 19.2% from October 2022 to 2023.

In Georgia, a new study by MarketWatch showed that Peach State Insurance rose more, increasing 22% from 2022.

Among the reasons insurance costs are going up, according to the study, are a higher number of accidents, larger payouts for property damage and medical claims and more frequent car thefts and break-ins.

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“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,” the study reported.

Citing increases in fatalities reported through 2021 by the National Highway Traffic Safety Administration, MarketWatch said the increase in fatal accidents had also contributed to increased premiums for motor vehicle insurance.

In Georgia, the number of fatalities increased 26% from 1994 to 2021, according to NHTSA. Shown from 2019 to 2021, the study said the fatalities increased 35.4% per million miles traveled in the Peach State, adding to higher premiums.

The increase in fatal accidents “has meant more payouts for insurers, which companies tend to cover by charging higher premiums.”

More recent data from NHTSA showed Georgia had 764 fatal accidents from January to June 2023, a 13.3% decrease from the same time period the year before.

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In addition to higher costs for payouts after an accident, MarketWatch said another cost adding to what you’re paying for insurance is the cost of repair. Damage from accidents, theft and natural disasters are typically covered by your insurance. The BLS said cost of repair grew close to 10% in October, compared to the year before.

On top of the damages themselves, thefts were up nationally, and Georgia was no exception.

In 2022, the Insurance Information Institute reported Georgia had as many as 26,529 motor vehicle thefts, with the Atlanta metro area alone having more than 17,000. III pulled its data from the National Insurance Crime Bureau, who released updated theft numbers in October.

“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,” MarketWatch reported said. “Other factors, such as the market rates of used cars upon which total loss payouts are based, are also at near-record highs.”

As a result of the various factors that can impact insurance prices, “Georgia drivers may see rates increase again in 2024,” MarketWatch said. They added that inflation could continue to push costs up, and that it was “unlikely that those rates will start to fall in the near future.”

While insurance costs are expected to go up, recent legislation passed in Georgia could make it slower.

In July, Gov. Brian Kemp signed House Bill 221, which allows the Georgia Insurance and Safety Fire Commissioner to review all insurance rate filings before they take effect, meaning the insurance commissioner can disapprove of minimum policy costs and providing a 60-day delay for the office to research the changes.

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