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  3. Navigating Georgia’s Increasing Auto Insurance Rates: Effective Strategies
Focused woman sitting at a dining table, engaged in budgeting on her laptop, in a well-lit room during mid-day. The back of the laptop is visible, with no screen shown. Through a large bay window beside her, several vehicles are visible in the driveway, symbolizing the personal impact of the recent auto insurance rate increase in Georgia.

Disclosure: This post may contain affiliate links, which means Uplift Insurance Group may receive a commission if you click a link and purchase something that we have recommended. Please note that all of our content is based on our personal opinion and is not influenced by the compensation we receive. For more information, please refer to our Advertiser Disclosure.

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Unless you’ve been living under a rock, I’m sure you’ve heard the word “Inflation” become increasingly common in typical, every-day conversations.

Just the other day, I decided to make a pit-stop at Kroger to grab a few items for dinner.

I was quite surprised that my total shot right past $100.

I didn’t even consider this stop to be a “grocery store trip” – I was merely grabbing some staples and then a few items to make dinner for my wife, and I.

There’s no denying the cost-of-living situation has become increasingly worse, and unfortunately, inflation has leeched into more than just gas and groceries – we’re seeing historic rate increases on auto insurance. 

For many of our fellow Georgians, this increase is more than just an annoyance; it’s a financial challenge considering this stacks on top of the changes to rent, gas, groceries, and nearly everything else you purchase.

But why are auto insurance rates consistently increasing, even if you haven’t filed a claim? And how can we bring costs back down for every-day families?

Well, that’s exactly why we wrote this blog.

So if you’ve noticed your car insurance bill has recently jumped, this post is for you.

Understanding the Trend

The trend of rising auto insurance rates in Georgia isn’t just hearsay; it’s reality backed by data.

Rates had been climbing so aggressively that the insurance commissioner had to step in, and sign a new piece of legislation called HB-221 (Read more) – which essentially prevented the insurance companies from entering huge rate increases without state intervention.

Regardless of the law, the question remains the same: Why are auto insurance rates going up?

Several factors contribute to this phenomenon:

Firstly, Georgia’s growing population and increased traffic have led to significantly more accidents, which in turn drives up insurance claims and, subsequently, insurance premiums.

Additionally, the rise in repair costs, driven by advancements in vehicle technology and higher prices (inflation) for auto parts, also plays a significant role.

You see, many policyholders are under the impression that if they are less risky, then they will be rewarded with better rates. Although that can be true, it’s nearly never the case.

Albeit, we don’t know the actual mathematics behind how the insurance companies create their rates (it’s trade secret), we do know that the insurance company has one primary expense: insurance claims.

Sure, they also have other expenses like payroll, marketing, software, etc – BUT their largest expense will always be insurance claims.

When the frequency, or size, of insurance claims in a state increase dramatically, then the insurance company will respond by increasing their baseline rates so they can stay profitable.

Insurance companies are in the game of making money, and the sooner we understand that game, the sooner we can start saving money.

Strategies to Lower Your Rates

But it’s not all doom and gloom.

There are several strategies, we recommend, to combat these rising costs. Let’s explore some effective ways to keep your auto insurance rates in check:

Shop Around

Loyalty doesn’t always pay when it comes to auto insurance. Make a habit of shopping around for quotes, especially when your policy is up for renewal.

Different companies have different ways of viewing auto insurance rates. Knowing this, it’s smart to collect all of your options, and review them individually. (Uplift agents will do this for free)

On top of that, companies are constantly changing their rates. Depending on if the company wants to grow, or stay stable – they will increase or decrease rates significantly.

Adjust Your Coverage

Evaluate your current coverage. Do you really need comprehensive coverage for an older car? Does your deductible really need to be $0? Do you honestly need a $250,000 liability limit?

Adjusting your coverage to better fit your current situation can lead to savings, but before making changes to coverage, we highly recommend you speak to a licensed professional, or request a quote from someone like Uplift Insurance Group.

Insurance agents aren’t all created equal, but here at Uplift – the only priority is finding the best deal for you.

Discounts and Bundling

Don’t overlook discounts. Many companies offer discounts for things like a clean driving record, multiple cars on one policy, or even for completing a defensive driving course.

Additionally, bringing more policies to the table can help you save money. Typically, insurance companies will provide their largest discount when you bundle your auto and home insurance, or even auto and renters insurance.

Improve Your Credit Score

In Georgia, as in many states, your credit score can influence your insurance rates dramatically, and even impact how much your initial payment is.

Needless to say, the higher your credit score, the lower your rates will tend to be.

We say “tend” gingerly because every company has their own method for calculating rates, but as an objective third party (that deals with them every day) – most of our higher-credit-score clients pay lower premiums overall.

Usage Based Insurance

UBI (Usage Based Insurance) is becoming increasingly more common, and it could help you save quite a bit of money if you’re open to an alternative type of auto insurance.

So what is UBI?

Well, in lieu of paying a fixed payment every month, regardless of how often you drive – you could opt for a company that charges you by the mile.

Here at Uplift, we have a few carriers that offer this type of car insurance, and it’s honestly proven to work well when attempting to lower car insurance costs.

Especially for people who don’t drive often, or work from home.

If you think you might be a good fit for UBI, then give us a call or request a quote

The Importance of Comparing Quotes

One of the most effective tools in your arsenal against rising auto insurance rates is the ability to compare quotes.

It’s actually the reason I started Uplift Insurance Group, and opted to work with 30+ carriers, instead of the typical 1, or 2 companies.

You should always compare rates, and here’s why:

  1. Discover Better Rates: Insurers often change their pricing structures. By regularly comparing quotes, from a reputable broker, you might find a better rate with another insurer.
  2. Tailored Coverage: Your insurance needs can change over time. Comparing quotes helps ensure your coverage aligns with your current circumstances.
  3. Stay Informed: The process of comparing quotes keeps you informed about what’s available in the market and what constitutes a fair price for your insurance.

Conclusion

Navigating the landscape of Georgia’s auto insurance rate increases can seem daunting, but it doesn’t have to be a journey you embark on alone.

By understanding the reasons behind these hikes, feeling the impact on a personal level, and employing strategic measures to counteract these increases, you’re already taking significant steps towards lowering your costs.

We encourage you to use our online quote form to see how much you could save. It’s quick, easy, and could be the first step to significantly lowering your auto insurance rates in Georgia. Drive safe, stay informed, and take charge of your auto insurance needs today.

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