A new Bureau of Labor Statistics study showed the average amount by which rates rose in the US.
The US Bureau of Labor Statistics recently released the results of an auto insurance prices study in which it showed that rates rose 19.2 percent nationally from October 2022 to the same month in 2023.
That said, a new study on Georgia rates showed that drivers in that state saw higher increases.
The second study was conducted by MarketWatch and showed that Georgia insurance rates increased by 22 percent from 2022 to 2023, which is clearly higher than the national auto insurance increase.
There are several reasons to which insurers have pointed to help explain why the rates have been rising particularly quickly in the state, said the study. In Georgia, drivers have a higher rate of crashes than the national average, have higher property damage and medical claim payouts, and suffer more frequent break-ins and thefts.
“In 2022, the average full coverage premium in Georgia was $1,617 per year. This year, it jumped to $1,973 annually,” reported the study. “The 22% increase over the year is more than drivers in 30 other states saw.”
Fatal accident rates have also contributed to the higher auto insurance increases in Georgia.
Data from the National Highway Traffic Safety Administration (NHTSA) showed that Georgia experienced increases in fatalities from accidents and this played a role in increasing the rates in the state. From 1994 to 2021, Georgia saw an increase of 26 percent in vehicle crash fatalities, according to NHTSA data. Moreover, during that same span of years, crash fatalities rose by 35.4 percent per million miles driven in the state. This rising risk was directly linked to the increased rates.
Additional NHTSA data showed that in Georgia from the month of January through June 2023, there were 764 fatal vehicle crashes, which was actually a 13.3 percent drop when compared to the same time span in 2022.
The MarketWatch report said that aside from higher auto insurance payouts from costs following a vehicle crash, the rising cost of repairs was also an important factor driving premiums skyward. While theft, natural disaster, and crash damages are all typically included in standard coverage, the cost of repairs rose 10 percent by October 2023 when compared to the year up to that month in 2022.
