Georgia is 10th most expensive state for car insurance
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The cost of car insurance is hitting high water marks nationwide, though drivers in Georgia are feeling the pain more than others.
Why it matters: Rising rates are fueling a transportation affordability crisis, especially in Atlanta, where car dependency has dominated for decades.
Driving the news: Georgia ranks 10th as the most expensive state for car insurance, with the average annual cost reaching $2,688 as of June, according to Insurify, which helps users collect quotes from multiple insurers.
- That's 15% higher than the national average.
- Peach State drivers saw a 21% increase in the cost of full-coverage insurance from June 2023 to June of this year.
Zoom out: The nationwide average annual cost of full-coverage car insurance hit $2,329 in June — up from $1,601 in January 2021, per Insurify.
- Some states that rank higher than Georgia include Maryland ($3,400), South Carolina ($3,336), Florida ($3,201) and Louisiana ($3,182).
How it works: Insurify's monthly figures are two-year rolling medians to account for "extreme market volatilities" in recent years, the company says.
- They're based on rates for drivers ages 20-70 with clean driving records and at least average credit scores.
Context: The overall cost of used and new cars has increased, driving up what insurers must pay to cover damages.
- Plus, Insurify notes vehicle thefts could influence high insurance costs in Georgia, which ranked ninth in the number of vehicles reported stolen (28,171) in 2023, the National Insurance Crime Bureau reports.
- A law went into effect last year that allows the state insurance commissioner to review rate filings before they go into effect.
The big picture: Several factors play into the difference in rates between states, including road conditions, accident rates and whether a state requires no-fault coverage (meaning plans must cover medical expenses regardless of who's at fault in an incident).
- Individual drivers' quotes, meanwhile, also take into account factors like their age, gender and driving record.
The intrigue: Insurers are increasingly using data about people's driving behavior to inform their rates — sometimes with drivers' knowledge and sometimes not, per the New York Times.
- In March, General Motors quit sharing details about drivers' behavior with data brokers that worked with insurers to create "risk profiles" following the Times' reporting on the practice.
The bottom line: If you're looking to save on insurance, try shopping around — sometimes you'll get a deal with a new provider.
- Compare auto policies on HelpInsure, a site maintained by the Texas Department of Insurance and the Office of Public Insurance Counsel.