For many drivers across the Peach State, the rising cost of everyday living is a constant concern. This includes car insurance, which has increased 8.80% across the state of Georgia from 2023 to 2024.
Unfortunately for some policyholders, another increase is on the horizon as GEICO prepares to enact a 4.6% rate adjustment. But there’s still time to shop around and save before the change goes into effect.
What’s Happening?
GEICO, Georgia’s 4th largest auto insurance carrier, was recently approved to increase rates by an average of 4.6% across the state. This adjustment is set to impact renewal business starting on August 4, 2025, raising rates for an estimated 78,243 policyholders. The average policyholder can expect to see their premiums go up by $129.
Why Insurers Increase Premiums
Whenever you hear about an impending rate increase, it’s important to understand the reasons behind the change. While your own insurance quote can go up due to changes in your personal risk profile, more widespread trends can impact rates across the board.
Adjustments like this one are often driven by a variety of key factors:
Rising Repair Costs: Modern vehicles are equipped with increasingly sophisticated technology, from advanced driver-assistance systems (ADAS) to complex sensors and integrated computer systems. While these features enhance safety, they also make repairs significantly more expensive. A minor fender bender can now involve replacing high-tech components, leading to higher repair bills. The rising cost of parts, specialized labor, and even the inflation in rental car costs during repairs all contribute.
Increase in Accident Frequency and Severity: Unfortunately, Georgia has seen trends indicating a rise in both the number of accidents and the severity of those accidents. Factors such as distracted driving, increased traffic congestion (especially in urban areas like Metro Atlanta), and higher speed limits can all contribute to more frequent and more impactful collisions. More accidents mean more claims, and thus, higher costs for insurers.
Rising Medical Expenses: Beyond vehicle damage, the cost of medical care for injuries sustained in car accidents continues to climb. Hospital stays, surgical procedures, physical therapy, and long-term care can be incredibly expensive, directly impacting the payouts insurance companies must make.
Weather-Related Claims: Georgia is no stranger to severe weather, including heavy storms, hail, and even tropical storm remnants. These events can lead to a surge in comprehensive claims for damages like hail, flooding, and fallen trees. When a region experiences more frequent or severe weather events, it increases the overall risk pool for insurers, which can translate to higher premiums.
Increased Litigation and Uninsured Drivers: Some regions experience higher litigation rates surrounding accident claims, which adds to insurers’ legal costs. Furthermore, a significant number of uninsured drivers on the road means that when accidents occur, the financial burden often falls back on insured motorists’ policies, indirectly driving up costs for everyone else.
Inflation: Just like the cost of groceries and gas, the overall economic inflation impacts every aspect of the insurance industry, from administrative costs to the cost of legal services. Insurers must factor these broader economic shifts into their rate calculations.
Shop now and save!
Strategies to Save on Your Car Insurance in Georgia
Even with a rate increase from your current provider, you have several powerful strategies at your disposal to potentially offset these higher costs and find cheap car insurance in Georgia. It’s all about being proactive and informed.
Re-Quote Your Policy: If your policy renewal date falls after August 4, 2025, contacting GEICO before that date to request a new quote could potentially allow you to lock in a rate based on the current, pre-increase pricing for a new term. While not guaranteed for all situations, it’s a critical first step. Don’t assume your renewal will automatically reflect the most favorable terms.
Shop Around: Even if you’ve been a loyal GEICO customer for years, the competitive insurance landscape means that different carriers will assess risk and price policies differently. Use a comparison tool to get quotes from at least three to five other insurance companies in order to make sure you’re getting the best deal.
Review and Adjust Your Coverage:
Increase Your Deductible: If you have an emergency fund and can comfortably afford a higher out-of-pocket expense in the event of a claim, increasing your collision and comprehensive deductibles can significantly lower your premium.
Drop Unnecessary Coverage: For older vehicles (generally those 10+ years old) that are paid off, consider if collision and comprehensive coverage are still worth the cost. If your car’s market value is less than the annual cost of these coverages plus your deductible, it might make more financial sense to drop them and save that money for potential repairs or replacement.
Adjust Liability Limits: While you should always carry adequate liability coverage, review your current limits. If you have significantly higher limits than legally required and your financial situation has changed, you might explore adjusting them, though this should be done with caution and an understanding of potential risks.
Maximize Your Discounts: Insurance companies offer a wide array of discounts that many policyholders overlook. Contact GEICO (or any potential new carrier) and ask for a comprehensive list. Common discounts include:
Multi-Policy/Bundling Discounts: Insuring your car and home (or renters) insurance with the same company.
Safe Driver/Accident-Free Discounts: For maintaining a clean driving record over a certain period.
Good Student Discounts: For young drivers who maintain good grades.
Low Mileage Discounts: If you drive fewer miles than average.
Anti-Theft Device Discounts: For vehicles equipped with alarms or tracking systems.
Defensive Driving Course Discounts: Completing an approved driver safety course.
Payment Discounts: For paying your premium in full or setting up automatic payments.
Vehicle Safety Feature Discounts: For cars with advanced safety features.
Maintain a Clean Driving Record: This is a long-term strategy that pays dividends. Avoiding accidents and traffic violations is the best way to keep your premiums from increasing due to your individual driving history.
Improve Your Credit Score: In Georgia, your credit-based insurance score can influence your rates. Working to improve your credit score through responsible financial habits can lead to lower premiums over time.
Consider a Usage-Based Insurance Program: Many insurers offer programs (often via a telematics device or app) that monitor your driving habits (e.g., mileage, braking, acceleration). If you’re a safe, low-mileage driver, these programs can offer significant discounts.
The Road to Affordable Car Insurance
Next time, get notified as soon as your rates are set to change! Start tracking your policy for free with Auto Quote Tracker, and we’ll send rate change alerts directly to your inbox.
