For the third consecutive year, Georgian drivers will face higher premiums for their coverage.
Georgia auto insurance rates are headed skyward once again, making this the third year in a row drivers in the state are paying more. This also makes it the third straight year that Georgia drivers have faced the highest insurance rate increases in the country.
For many drivers, this situation has become frustrating but is no longer considered to be surprising.
Last year, Georgia auto insurance rates saw the highest increase in personal lines among all the United States, according to S&P Global Market Intelligence analysis data. That said, the Atlanta Journal-Constitution (AJC) said this has been the case for a while. In fact, it claims Georgia has seen the highest personal auto insurance rate hikes in the country for three straight years. The AJC said this is simply the new normal for motorists in the state, as insurance companies regularly increase rates by percentages in the double digits.
Georgia auto insurance rates can increase in the state without requiring pre-approval from regulators.
This has been the situation since 2008. In that year, the state passed a law making it possible for car insurance companies to move forward with rate hikes without needing regulatory approval. The bill was supported by Insurance Commissioner Ralph Hudgens, who was in the Georgia Senate that year.
The goal of the new law was to help boost the market’s competition. There are currently more than 200 auto insurance companies selling policies in the state. That said, AJC reports indicate that the insurance industry continues to feel justified in boosting its rates across the board for a spectrum of different reasons.
Among the top explanations insurers have for needing to raise their rates to such a degree each year include: rising traffic volume, mounting numbers of accidents and crashes, as well as increasing costs associated with vehicle repairs in the state.
Hudgens has announced that he does not intend to run in 2018 for what would have been his third term as insurance commissioner. His office was not available for immediate comment at the time this Georgia auto insurance rates article was written.