In recent years, auto insurance rates have been soaring in Georgia. One reason rates have been going up is that accidents are on the rise in Georgia. Another reason is that there is nothing to stop insurance companies from hiking up rates. Georgia used to regulate auto insurance rates so that insurers could only raise rates when given prior approval from the state to do so.
But in 2008, the Georgia legislature passed a bill deregulating the auto insurance industry. Today, insurance companies in Georgia can raise rates freely when they decide to.
Deregulation was supposed to increase competition and allow free market forces to drive prices down. But this didn’t happen. Instead, auto insurance rates have steadily risen in Georgia each year since. In 2016, Georgia saw the highest increase in personal auto insurance rates in the entire country. Overall, Georgia auto insurance premiums are the twelfth highest in the country.
Insurance Commissioner Ralph Hudgen has done little to address the rising rates. As a senator in 2008, Hudgen was the chairman of the Georgia Senate Insurance Committee and supported deregulation. His stance against regulating the insurance industry, coupled with the fact that he has accepted large campaign contributions from the insurance companies, has led many to wonder whether he is really looking out for Georgia consumers.
Insurance Companies Say Premiums Reflect Increase in Traffic and Accidents
Commissioner Hudgen and the insurance industry argue that rate hikes simply reflect the increasing risk of car accidents on Georgia roadways. There is pretty good evidence to back this claim up. According to the Georgia Office of Highway Safety, the number of auto crashes increased in Georgia for four consecutive years between 2011 and 2015. There were a record 385,221 accidents in 2015 (data for 2016 is not yet available.) Costs per claim are also on the rise.
Robert Hartwig, a risk management expert, told the Atlanta-Journal Constitution “it is certainly not the case that the private passenger auto insurers are earning a rate of return that in some way could be considered excessive or unreasonable.” Whether or not this is the case, the increasing risk of car accidents on Georgia roadways is at least one big reason that rates have been increasing.
Despite Cost, Personal Auto Insurance is Essential for Drivers
Rising insurance rates reflect the growing danger of Georgia roadways. Higher insurance costs also encourage some drivers to go without auto insurance. Uninsured motorists present a big problem for Georgia accident victims.
If you are thinking about driving without insurance to save money, don’t do it. Despite the costs, it is critical to have insurance coverage. Auto insurance is legally required and you can lose your license for driving without insurance. Drivers should also make sure their plan includes uninsured motorist coverage. If you are driving without insurance, it puts you at great risk legally and financially.
For More Information, Contact the Kennesaw Personal Injury Attorneys at Williams Elleby Howard & Easter
The Kennesaw ,Ga personal injury attorneys at Williams Elleby Howard & Easter, are dedicated to helping auto accident victims get the compensation they deserve. If you would like more information about this issue, or if you have been in an accident and would like to discuss your case, contact Williams Elleby Howard & Easter, at 833-LEGALGA today.
