Hey Y'All Georgian's are paying more for car insurance
It's true, Georgian's are paying the highest rates for car insurance. The rates continue to go up every 6 months. One insurance company submits a rate change to the Insurance Commissioner and the other insurance companies have to follow suit with rate increases, usually less than the initial company. The reason, is to remain competitive. Since the individual agencies have no pull in determining the rates their only choice is to adjust or lower coverage for a customer so as to lower the rate for their 6 month period. What do you do when you've lowered the rate to the state minimum for Liability? There's no room to reduce premium the next renewal.
The result of this is that the customer either pays the higher rate increases each renewal or they shop and find a better rate somewhere else, only to find that rate going up in another 6 months. It's a continuous game of either sucking it up and staying where you are at or jumping around from company to company. Then, when you try to go back to that company you liked being with or were with for many years, you find that the rates are now higher. Why are they higher, because that customer is now coming back in as a new customer and are therefore subject to the current rates. What that customer doesn't realize is that although they were experiencing rate increases, they are "grandfathered" in to a rate bracket and canceling their policy at that time pushes them out of that bracket and requires they start newly if they are returning.
These instances of rate increases are coming about because the insurance companies are required to hold a threshold of reserves being higher than claims paid out. Normally, the one's with claims would pay the higher premium, but due to the number of accidents within the state, everyone is seeing an increase and paying for it. For those causing the accidents, they too are seeing increases or sometimes denials from an insurance company. For this reason many insurance companies have increased their underwriting guidelines for writing a new customer. Two or more accidents or tickets in the last 3 years can wind up with a decline with that company.
From an insurance agent and customer service rep's perspective, the conversation is continuous. Customers want to know why, did something change on their policy? Do they have a ticket they don't know about? Why the increase? The explanation is usually that there was a state wide rate revision.
What I tell my customers and I strongly believe in is that the use of a cell phone to the ear or texting and driving, needs to be stopped. This one factor would reduce the accidents within the state and I'm sure we would see a decrease in insurance premiums or at least a stop to the increases.
Further, reform to change the rating factors for insurance, possibly mirroring the rating in California, would help to change the industry.
I am here to answer questions, concerns, or receive your input on this subject. I've included an article that further outlines what I've covered above. http://www.wsbtv.com/news/local/car-insurance-in-georgia-what-affects-your-rate-and-why/637031883
The result of this is that the customer either pays the higher rate increases each renewal or they shop and find a better rate somewhere else, only to find that rate going up in another 6 months. It's a continuous game of either sucking it up and staying where you are at or jumping around from company to company. Then, when you try to go back to that company you liked being with or were with for many years, you find that the rates are now higher. Why are they higher, because that customer is now coming back in as a new customer and are therefore subject to the current rates. What that customer doesn't realize is that although they were experiencing rate increases, they are "grandfathered" in to a rate bracket and canceling their policy at that time pushes them out of that bracket and requires they start newly if they are returning.
These instances of rate increases are coming about because the insurance companies are required to hold a threshold of reserves being higher than claims paid out. Normally, the one's with claims would pay the higher premium, but due to the number of accidents within the state, everyone is seeing an increase and paying for it. For those causing the accidents, they too are seeing increases or sometimes denials from an insurance company. For this reason many insurance companies have increased their underwriting guidelines for writing a new customer. Two or more accidents or tickets in the last 3 years can wind up with a decline with that company.
From an insurance agent and customer service rep's perspective, the conversation is continuous. Customers want to know why, did something change on their policy? Do they have a ticket they don't know about? Why the increase? The explanation is usually that there was a state wide rate revision.
What I tell my customers and I strongly believe in is that the use of a cell phone to the ear or texting and driving, needs to be stopped. This one factor would reduce the accidents within the state and I'm sure we would see a decrease in insurance premiums or at least a stop to the increases.
Further, reform to change the rating factors for insurance, possibly mirroring the rating in California, would help to change the industry.
I am here to answer questions, concerns, or receive your input on this subject. I've included an article that further outlines what I've covered above. http://www.wsbtv.com/news/local/car-insurance-in-georgia-what-affects-your-rate-and-why/637031883
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