ACWORTH, Ga. — Driving in metro Atlanta may already give you a headache, but if you're among those who've looked at your car insurance costs lately, you may also be feeling additional pain.
Drivers are footing bigger bills for insurance premiums, due in part to increases in crashes, lawsuits and higher repair costs.
It's an impact Sherry Rosen has been tracking since her renewal last year.
"My rate was 176, and then in December when it renewed, it went up to 197," Rosen said. "Then January, it went up - in one month!"
For Rosen and others, the frustration is that such changes are one-sided.
"Nothing's changed," she shared. "No claims, no accidents, nothing. No reason for them to increase my rate."
Yet, Rosen and independent insurance agent Whitney Horne said that's exactly what's happening.
"You see rate increases, but I've never seen it like this," Horne said, and she's worked in the industry for more than a decade. She said she's now routinely fielding calls from clients, experiencing sticker shock as their policies come up for renewal.
"I think a lot of people think it's just something that's happening individually to them," she shared. "They don't realize that this is a nationwide issue and that it's really bad in Georgia, where we're seeing just huge rate increases, especially if they have been with the same carrier for a long time. They just really don't realize, like, how much that policy has gone up."
In fact, the average cost of full coverage car insurance is up 26% compared to 2023. According to Bankrate.com, the annual premiums nationwide now average $2,543, with Georgia drivers paying on average $67 more ($2,610 annually).
Agency owner Gerard Wichalonis is also getting daily inquiries about the increases.
"I get phone calls every day, from people who are who are seeing their rates go up and they're, they're in shock," Wichalonis said. "And the first thing I tell them, 'it's not your fault. It's nothing you've done.' It's the cost of doing business in Georgia has gone up for everything from repairing their vehicles to, you know, to the amount of accidents that are."
Industry leaders shared further perspective on the issue.
“Auto insurance premiums have been on the rise for the simple reason that the cost of what goes into auto insurance has been rising," Bob Passmore, department vice president of personal lines at the American Property Casualty Insurance Association said in a statement. "In 2022, auto insurance claims and expenses spiked to more than $1.12 for every $1 in premium."
According to Passmore and APCIA, inflation has been a primary driver of the increased costs needed to repair and replace cars. The association also pointing to upticks in risky driver behavior as well as distracted driving, which can also increase claim and injury-related costs.
“Any strain on insurance affordability and availability is a serious concern," Passmore said. "The property casualty insurance industry is analyzing these issues and advocating for solutions to address increasing insurance costs for families, individuals, and business owners. Insurers are advocating for better infrastructure, including reliable supply chains for critical auto parts and safer roads, which should result in fewer crashes, and controlling claims costs to help keep insurance premiums affordable for consumers.”
But there are ways to counter some of the costs passed on to consumers. Consumer Reporters laying out the following tips to save on premiums:
Increase Your Deductible.
Now might be the time if you haven’t raised your deductible recently. Consider a thousand-dollar deductible to save on your annual premium. Remember, you’re increasing your potential out-of-pocket repair costs after a crash, so make sure you have access to the money just in case. Or use the savings to build an emergency fund.
It might be time to Drop Collision and Comprehensive Insurance.
As your car's years and miles pile up, its value decreases. That lowered value might not justify the expense of paying for collision and comprehensive coverage.
Take a Defensive Driving Course.
Some insurance companies let you take a safe-driving course to get a discount. It only takes a few hours, tends to cost around $25 and the savings can add up. And you might even be able to take the course online.
Shop around then bundle.
You may be able to save hundreds a year by combining your home and auto policies.
Sign up for driver monitoring.
You can save up to $800 with some insurance companies if you allow them to track your driving habits with a smartphone app or a device that plugs into your car’s diagnostic port -- so long as you prove to be a safe driver. There are some tradeoffs. Remember you’re giving up some privacy, in much the same way you do when using certain smartphone apps in exchange for a potential discount.
Horne and Wichalonis also caution families to talk with teen drivers about the cost that even a fender bender can have on premiums. Distracted driving, they also emphasized, also can cost you big.
"That ticket will stay on your record for five years," Horne said. "I have seen it actually double people's rates."