In Georgia, car insurance rates have risen faster than most other states over the last several years. The primary cause of these rate increases is arguably the result of a different structure and process for setting car insurance rates. The insurance commissioner in Georgia previously reviewed in some detail any request or application for an increase in car insurance rates. Under a new law adopted in 2008, car insurance companies are authorized to increase their rates without significant review and/or approval by the insurance commissioner for most policies. Since that change in the law, car insurance rates have gone up dramatically.1
Why have rates risen? More wrecks? Maybe. More expensive repairs? Perhaps. More distracted driving from texting and cell phones? Most definitely.
But cars are safer now than they were 30 years ago. The long-term trend reflects that the safety of automobiles has improved, saving lives and preventing more serious injuries. As a result, serious injuries in car wrecks have declined. Fatalities have declined since 1975. However, they went up slightly in 2015 from 2014.2 Nevertheless, car insurance rates continue to rise faster than many consumer products/services. In subsequent newsletters, I will address the details behind these rising rates and possible causes of the same. I will also suggest how you can reduce your rates yet protect yourself from car wrecks that might cause not only serious injury but also significant financial consequences. We will also explore what you can do to oppose the current climate which authorizes these dramatic increases in insurance rates.
I've spoken to officials at the Georgia Insurance Commissioner's office, researched both legal and non-legal sources, some of which I have linked in this article for easy access by you and attempted to give you information for you to draw your own conclusions on these issues. We have an election in 2018 for the Georgia Insurance Commissioner. I will not recommend a candidate in my newsletter. That is not the purpose of this newsletter. However, each of us should become more informed on these issues and vote accordingly.