While every state has their own car insurance laws that are pretty standard, there are also many auto insurance policies that differ between states. Things like geography, demographics and even the number of drivers out on the road can affect your car insurance rates. Pay attention to some of the following reasons outlining why obtaining coverage in Georgia can be different from other states you’ve lived in.
More Driving, More Claims
When it comes to driving, the idea is simple: get in, get going, and zip around at your convenience. However, when you consider the increases in driving hours and miles, then you need to think about what the other increased effects will be as well. In short, there is an increase in negative activity on the road.
- Inclement weather
- Erratic lane changes
- Not abiding street signs
- Speeding
- Drunk driving
- New drivers
- Distracted driving
- Ill-maintained vehicles
Sure, we all have to pass a test to get a driver’s license, but this doesn’t mean that everyone with a license is as equally skilled a driver. No matter how good we are, we’re only as strong as the weakest link, and if there’s a poor driver out on the road the same time you are, your chances of getting in an accident are higher.
Specific State Tendencies
As you can see, it is not just specific insurance problems or legal issues that can potentially cause coverage rates and policies to go up. A large portion of the problem of why coverage is increasing for many people in the state of Georgia is not only how business is done in general, but also by the way that the system as a whole works: it’s based on the driver skill set. Some of the problem is manageable, but currently, a large part of the reason for increases is due to the fact that the average driver is causing more damage. The average insurance company needs to pass on the costs of that damage. Be sure you understand what you should be paying (and could be paying) before you accept any rate increase.
Overall National Trend
Some people are suggesting that what is happening in the state of Georgia is coming down the pipeline for everyone. It is only a matter of time until everyone’s rates start jumping through the roof due to the above traffic accident causes. The fact that Georgia is getting hit first only means residents of the state need to find the best car insurance Georgia has to offer. If you start to consider the idea that cars are becoming cheaper, gas prices are going down and people are becoming more comfortable with driving more often, then it should only make sense that our rates are going to go up. It’s not just about the costs of one state and how Georgia operates, Rather, it’s about how one motorist’s skills differ from the next motorist’s.
Ability to Change Rates
The way that insurance companies actually operate with a specific state government can be another major component to how rates change as well. You have to consider the speed and general ease in which rates can be changed. As CBS News reports, because Georgia is a “file and use” state, all insurance companies need to do is file their next set of rates in a certain amount of time, be it an increase or decrease.
The rates then go into effect as soon as the company processes them. A rate hike can literally hit you (seemingly) out of nowhere, and that is the reason why so many drivers are just now seeing higher rates. If all it takes for our rates to go down is to drive safely, why don’t more of us do it?
