The Zebra, a digital platform that facilitates comparison of insurance policies, has reported that drivers in Georgia experienced an average 29% rate increase for their car insurance in 2023 compared to the previous year. The findings were shared in a report last updated on Jan. 24.
According to the report, the average rate increase in Georgia was comparable to several other states, including Alabama (28%), Connecticut (27%), and New Hampshire (28%). Conversely, states with the smallest rate increases between 2022 and 2023 included South Dakota and Vermont at 2%, and Wyoming at 3%. A few states even saw an average decrease in rates during this period, such as Michigan (-18%) and Idaho (-11%).
Insurance analyst Ava Lynch highlighted one factor contributing to rising car insurance rates as ongoing effects from the pandemic. With fewer drivers on the road during the pandemic, insurance providers were able to maintain lower rates due to a decreased number of accidents leading to fewer insurance claims. However, Lynch noted that more drivers returned to the road in 2021 and 2022, some of whom had "just taken a long break from traffic congestion," resulting in an upsurge of accidents.
In addition, Lynch stated that supply chain disruptions caused by the pandemic led to shortages of some vehicle parts. This resulted in higher costs for repairs and replacements. Mark Friedlander from the Insurance Information Institute confirmed these increased costs have surpassed inflation. "Replacement costs have increased a cumulative 45% over the past four years due to supply chain disruption and the increasing cost of labor," said Friedlander. "Comparatively, inflation for the overall U.S. economy increased 15% within this same period."
The report also pointed out numerous other factors contributing to escalating car insurance costs. These include "more litigated claims due to increased accident severity," higher medical care costs, a rise in uninsured drivers, and an elevated rate of vehicle thefts. In 2022, more than one million cars were stolen nationwide, marking the highest recorded number of stolen cars since 2009.
According to Valdosta Today, Georgia ranks among the top ten states in the country with the highest rate of vehicle thefts. Approximately one out of every 142 cars registered in Georgia was reported stolen in 2022.
Founded in 2012, The Zebra aims to simplify the insurance policy selection process for consumers. As stated on the company's website, The Zebra's algorithm uses customer information to compare over 100 insurance providers and suggest suitable policies based on individual needs.
Lynch is a licensed insurance agent who joined The Zebra in 2016. Her analysis has been cited by various publications including Investopedia, Liberty Mutual, and Yahoo Finance.