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Facts You May not Know About Auto Insurance in Georgia

Auto insurance in Georgia costs more than in most of the United States. In fact, Georgia ranks 15th highest in the country for auto insurance costs. Why is that? There are many reasons why auto insurance costs are higher in the peach state. First, insurance prices reflect the long-term claim and accident experience of the "pool" of insured customers each insurance company covers. As loss costs rise, the actual cost to consumers rises as well. Premium changes reflect the actual loss experience for this "pool" of customers. If the insurance company makes a profit, over time rates decline. However, if the insurance carrier loses money, over time rates increase.

Factors that impact the frequency and costliness of auto accident losses are what cause Georgia's high auto insurance premium costs. These factors include:

  • Lots of cars on the road (especially in the metro Atlanta area where roughly 52% of all vehicles in Georgia are operated)
  • Past economic growth that outpaced roadway infrastructure; resulting in tight lanes, fewer shoulders and frequent roadway maintenance issues.
  • Georgia is a highly litigious environment for civil suits with lots of attorneys, accident lawsuits and settlements which drive up loss amounts. 
  • Long commutes
  • Distracted driving. Not just texting and driving, but eating, drinking and fatigue can also factor into distracted driving cases.

So what can you do? You can do your part by reducing the frequency and severity of automobile accidents in the state. You can do this by always wearing your seatbelt, never texting while you drive, never drive aggressively and only get behind the wheel when you are physically capable of doing so.

While everyone may intend to drive safely, there are some factors that are outside of your control. Because of this, we recommend you consider purchasing adequate insurance coverage and limits. A Georgia Farm Bureau agent can help make sure you get the coverage that you need. Find an agent in your area today


Content provided by Richard Hart, Director of Sales Training for Georgia Farm Bureau