Georgia Car Insurance Rates Surge 22% in a Year, Experts Offer Cost-Saving Tips

Car insurance rates in Georgia have skyrocketed by 22% over the past year, with the average annual cost for full coverage reaching $2,019 in 2023, up from $1,633 in 2022 and $1,567 the previous year. The significant increase has left many drivers struggling to afford their premiums, prompting experts to suggest various strategies to help lower costs.

Several factors have contributed to the spike in Georgia car insurance rates. The rising costs of vehicle parts, repairs, and replacements due to supply chain disruptions and high demand during the pandemic have put pressure on insurers. Additionally, a shortage of mechanics has driven up auto repair costs. Insurance companies are also trying to recoup losses from 2021 when there was a sharp rise in fatal car accidents.

Why this matters: The surge in car insurance rates has a significant impact on Georgia residents' finances, as many are already grappling with the economic challenges brought on by the pandemic. The increased premiums add an extra burden to household budgets, making it crucial for drivers to explore cost-saving options.

To help mitigate the high costs, experts recommend that consumers take proactive steps. Shopping around and comparing quotes from multiple insurers is one of the most effective ways to find the best rates. Seeking out available discounts, such as those for defensive driving courses or pay-per-mile plans, can also result in significant savings.

Georgia Car Insurance Tips: Factors like good credit, a clean driving record, and infrequent driving can help drivers in Georgia find more affordable car insurance. Insurers like USAA, Auto-Owners, and State Farm tend to offer the cheapest rates in the state. Telecommuters and remote workers can potentially save up to 60% on their auto insurance by taking advantage of usage-based insurance options from providers like Progressive, USAA, and State Farm that offer discounts for low mileage drivers.

Experts also suggest considering switching to a 'pleasure use' policy instead of a commuting policy, which can result in immediate savings. "The auto insurance industry has been struggling due to the pandemic and global supply chain issues, leading to higher costs for insurers when vehicles are totaled or repaired," explains money expert Clark Howard.

Rising Georgia Insurance Costs: The 22% surge in Georgia car insurance rates over the past year has put a significant strain on drivers' finances. With the average annual cost for full coverage reaching $2,019 in 2023, experts emphasize the importance of proactively seeking cost-saving measures. By shopping around, taking advantage of discounts, maintaining a clean driving record, and exploring usage-based insurance options, Georgia drivers can potentially mitigate the impact of the rising premiums on their household budgets.

Key Takeaways

• Car insurance rates in Georgia have surged 22% in 1 year.
• Rising costs of vehicle parts, repairs, and shortage of mechanics drive up rates.
• Experts recommend shopping around, using discounts, and exploring usage-based plans.
• Insurers like USAA, Auto-Owners, and State Farm offer the cheapest rates in Georgia.
• Switching to 'pleasure use' policy can result in immediate savings on premiums.