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Drivers in Georgia are currently paying 10% less than the national average for car insurance with an estimated annual premium of $1,642. However, according to research conducted by Rate Retriever, factors such as credit score, zip code, and coverage level can result in a cost increase of up to 71%.
As inflation continues to increase and the economy struggles to right itself, saving money is top of mind for every consumer. Understanding exactly how car insurance rates are determined in Georgia and knowing the opportunities for savings available helps ensure that you have the best rate.
No matter the location, car insurance companies primarily set rates based on the amount of risk associated with each individual policy. This risk is determined by personal factors such as driving record, age, and where you live, as well as the make and model of your car.
Beyond that, each state’s department of insurance sets unique requirements that impact yearly premiums. In Georgia, the minimum requirements for car insurance are bodily injury liability insurance that covers $25,000 per person and $50,000 per incident as well as property damage liability insurance that covers $25,000 per incident.
Policy owners in Georgie have the option to add physical damage insurance such as comprehensive and collision coverage, as well as uninsured motorist insurance that provides coverage if you are involved in an accident with a driver who does not have insurance.
According to Rate Retriever’s Quarterly Insurance Rates Update, Georgia drivers who choose a minimum coverage car insurance policy can save up to 50% when compared to those with premium coverage. The estimated annual premium for minimum coverage car insurance in Georgia is $813 on average, about half the cost for a premium full coverage policy.
Comparatively, drivers in Georgia with a premium policy who pay an average of $1,642 per year while those who opt for a standard coverage policy – with slightly lower limits – pay around $1,650 annually, which is around $8 more.
Rate Retriever’s research also revealed that credit score is one of the more important determining factors for car insurance rates in Georgia. Currently drivers with poor credit pay an average of $2,816 yearly, 71% more than those with good credit.
Drivers who have a fair credit rating pay 19% more than those with good credit with an estimated annual premium of $1,958. Unsurprisingly, those with excellent credit are assigned the lowest car insurance rates. Having an excellent credit score can save you up to $298—or 18% — on your annual premium in Georgia compared to drivers with good credit.
Even within the same state, car insurance premiums can vary drastically depending on zip code. If you are looking to insure your vehicle in a zip code known for high rates of car theft, a high population density, or an above average accident rate, your rates will likely be higher than someone looking for insurance in a lower risk area.
Rate Retriever’s research showed the most expensive zip code for car insurance in Georgia is 30035. Located in Decatur, GA, the average annual premium for this zip code is $2,223. One reason for this could be that this Georgia city has a high population density of around 2,385 people per square mile, which increases the risk of an accident occurring.
The zip code paying the least for car insurance in Georgia is 31601 in Valdosta, GA. In comparison to Decatur, this area has a population density of just over 200 people per square mile, making the level of risk significantly lower, which may contribute to lower rates.
Even though rates are highly tailored to the policyholder, there are several ways that anyone can save money on car insurance in Georgia. The first of these is doing some research on any discounts you may be eligible for. Several insurance companies offer special discounts such as loyalty, good student, and safe driver discounts.
Multiple car insurance companies such as Geico and Progressive offer specific safe driving discounts to those who complete a defensive driving course. Taking a course like this shows insurance companies that you are up to date on the best safety practices on the road, making you less likely to file a claim.
Next, married couples can save up to 54% for car insurance in Georgia by combining their policies. The average price for a married couple in Georgia with separate car insurance policies is $3,280, however, combining policies can bring that amount down to $2,407 yearly and even as low as $1,510 if the couple chooses to share a vehicle.
Improving your credit score is another way to lower your car insurance rates in Georgia. Drivers in Georgia stand to save about 70% on their rates just by raising their score from poor to good.
Raising your deductible can also help save you money on your premium. By doing this, you are accepting more financial responsibility if you ever have to file a claim, so you do run the risk of spending more in the long run. This is why you should consider the pros and cons of this method to be sure it is the right choice for you.
Lastly (and most effectively), you could save money on your annual premium by comparing several car insurance companies in your area to see who is offering the lowest rates for your unique profile. Every insurer is different and the rates they set may vary drastically depending on several different factors. Take our short quiz to find the cheapest insurance provider near you.