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Georgia’s Auto Insurance Rates Our Skyrocketing but Why?

What is happening?

If you’re a Georgia resident with an auto policy that recently renewed, you’re likely to have noticed the spike in your annual premium.  Unfortunately, you are not alone.  Auto insurance rates are the highest they have ever been in Georgia – and some of the highest in the country.  Since auto premiums are growing faster than the average income in the state, Georgia middle-class families are really feeling the sting.

Why is this happening?

There are many factors that go into the rating of an individual or family auto insurance policy. Driving record, age of drivers, credit score, level of education and home zip code are just a sampling of the data used to determine your premium.  For example, a family living in the city with a 17-year-old driver in the house will pay a much larger premium on average than a mid-twenty, newly-wed couple living in the suburbs.  What insurance companies look at is the amount of risk.  If the risk is greater, there is more chance of a loss.

More Factors Causing Price Increases:

  • Vehicles repairs cost double compared to 5 years ago due to technology and cameras installed on all newer models.
  • 97% of drivers are using their phones in some fashion such as Google maps, Waze, emails, texting and even watching video!
  • We are driving a lot more because gas is cheaper than it was 5 years ago.

How can we fix it?

A recent study found insurance companies earn less profit in Georgia compared to the nationwide average. We can debate all day about why Georgia seems to suffer from more accidents and claims than most other states but the fact is, insurance companies are losing money insuring drivers in this state.

Until there is a statewide decrease in insurance claims, and insurance companies see better return on their business, there’s not much we can do about the increases in premiums.  However, there are small steps we can take to receive the maximum number of discounts offered. First, make sure you have spoken with your agent about your current situation.  Are you a newlywed? Moved away from the city? Teen driver left for college? All of these life changes could result in a decrease in your monthly premium.

A safe-driver tracking device is another tool that can be used to save money. No, these devices are not recording where you are going, but they are monitoring HOW you are getting there. This tool not only shows the insurance company that you are in fact, a safe and careful driver, but they also make you aware of problem areas in your driving that may save you from an accident in the future.  For this reason, many insurance companies offer these devices at no cost to you and most of them ONLY give you discounts, not increases even if you aren’t the safest driver.

For example, Safeco’s Right-Track program gives insureds a 5% discount just for installing the device and they can continue to earn up to 30%! Make it a fun game with your significant other and/or kids to see who can receive the most discounts with their Right-Track device. Learn your driving habits, have some fun, and most importantly, SAVE SOME MONEY!

To learn more about how to sign up for Safeco’s Right-Track program and other ways to save money on your monthly premium, contact your Personal Problem Solver, Cindy Koegel today!

Cindy Koegel Gillman Insurance Problem Solver

“We don’t just sell policies, we deliver solutions!” Email me at:

Cindy Koegel

Gillman Insurance Problem SolverCindy Koegel | Gillman Insurance Problem Solvers
Home & Auto Insurance Problem Solver
11375 South Bridge Pkwy Suite 100, Alpharetta, GA 30022
Phone: (678) 822-0144