Average Car Insurance Cost in Georgia

Insurers factor in several things when determining premiums for each driver, with some factors subjective to the driver and others subjective to the state. Let’s check out what insurers in the Peach State use to calculate premiums for Georgians and break down the average cost of a car insurance policy in Georgia.

The average car insurance in Georgia is a policy with at least the legal minimum coverage, if not more. Car insurance laws in the state require all drivers to have at least $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $25,000 of property damage liability per accident, otherwise expressed as 25/50/25 liability coverage. Those who finance or lease their vehicles will likely need collision and comprehensive coverage on their policies as a term in their legally binding agreement.

While it’s perfectly legal to carry the minimum amount of coverage the law requires, many drivers in the Peach State opt for a full coverage policy. A full coverage policy allows drivers to tailor their coverage to their specific needs to feel completely protected on the road. 

Since Georgia doesn’t have a no-fault law and instead acts as a tort state, drivers aren’t required to carry a first-party medical benefit (FPMB) on their policies, like personal injury protection (PIP) or medical payments coverage (MedPay). States that require drivers to carry an FPMB often have higher-than-average insurance rates, so the lack of an FPMB requirement is one of the ways premiums in the Peach State stay on par with the national average.

Those opting for a full coverage policy in the state often raise their liability limits to 100/300/300 and add coverages like uninsured motorist coverage (UM), an FPMB like MedPay, and other coverages like collision and comprehensive. 

On average, monthly car insurance in Georgia costs about $150 for a full coverage policy or about $75 for a minimum coverage policy. A minimum coverage policy will only have liability coverage with a limit of 25/50/25 and collision and comprehensive coverage if you’re required to have these coverages by your lender or leaser. A full coverage policy will include liability coverage and additional optional coverage types, like MedPay, UM, collision, comprehensive, and GAP coverage.

When binding a policy, policyholders must decide what they value more, cost or coverage. Drivers who value cost over coverage will typically opt for a minimum coverage policy, as the premiums are about half the cost of a full coverage premium. Those who value coverage over cost will likely opt for a full coverage policy with several additional coverages.

However, many drivers don’t want to sacrifice one for the other and prefer to find a compromise between cost and coverage. Drivers who value cost and coverage equally typically opt for a full coverage policy tailored to their needs from an insurer that offers the cheapest rates in the state and plenty of opportunities for stackable discounts.

Here at Clovered, we recommend having a full coverage policy, as it provides far more protection on the road. In many cases, the short-term savings of a minimum coverage policy pale in comparison to the long-term protection of a full coverage policy.

In Georgia, car insurance rates depend on several factors and vary from driver to driver. While the average rate in the state is about $1,780 for a full coverage premium, some drivers can expect to pay more or less than average, depending on a few key factors.

Car insurance rates are subjective in every state, as insurers use unique factors about the driver to determine their premiums. In the Peach State, insurers may use your age, gender, ZIP code, driving record, and several other factors to determine your rates. These factors help insurers calculate the risk they take by insuring you. High-risk drivers in the state often pay higher premiums. 

For example, according to the CDC, teenage boys are among the most expensive populations to insure because they are highly statistically likely to get into car accidents. When an insurer binds a policy for a teenage boy or anyone who falls into a high-risk category, like someone with an SR-22, they risk a higher likelihood of that policyholder filing a claim and using their insurance resources.

While the sticker shock can dissuade policyholders from having a full coverage policy, it’s important to remember that premiums fluctuate throughout the years and eventually decrease once the policyholder proves themself to be a safe driver. Plus, many of the state’s top insurers offer discounts specifically for students or new drivers to help lower your premiums.

The cost of car insurance in Georgia, and in any state for that matter, varies widely with age. Young drivers can often expect to pay at least double the average cost of $1,780 for a full coverage policy, so around $3,600 in the Peach State. In contrast, middle-aged drivers can expect to pay at or below average, depending on their driving record and insurance history. 

Depending on their driving history, older folks typically see a spike in premiums, especially when hitting age 70. While premiums may not spike all the way up to double the average, they may slowly creep up as you age.

The average car insurance cost in Georgia is about $1,780, or just over 5% more than the national average cost of a full coverage premium, about $1,670 annually. Aside from the unique factors about each driver that insurers use to determine premiums, insurers also use statistics about the state to calculate their rates.

Two of the most significant determinants in car insurance premiums are the state population and the population of uninsured drivers. States with high populations or densely populated cities typically have a higher average premium cost than those that are less populated or lack densely populated cities. Drivers in highly populated areas usually pay more in premiums because where there are more people, there are more drivers, and where there are more drivers, there’s a higher chance of the policyholder getting into an accident. Thus, drivers in populated areas are a high risk to insure.

On top of the driving population, the number of uninsured drivers in a state or a city is a massive factor in its average insurance premiums. States or ZIP codes with many uninsured drivers typically see higher-than-average premium costs because the risk of a policyholder getting into an accident with an uninsured driver is higher.

Getting into an accident with an uninsured driver in a tort state like Georgia means your insurer will have to foot the bill rather than the policyholder depending on the at-fault party’s liability coverage. The average number of drivers who lack sufficient insurance in Georgia is about 12%, the same as the national average.

Since Georgia doesn’t have a huge population, and the number of uninsured motorists is on par with the national average, the average premium in the state stays on par with the national average, too. 

If you pay higher than the state average for your premiums, it’s likely because you live in a densely populated city like Atlanta, have infractions on your driving record, have previously made an auto insurance claim, or your insurer has increased their rates.

The cost of car insurance in Georgia is about $1,780 annually for a full coverage policy or about $900 annually for a minimum coverage policy. Always keep in mind that your premium isn’t the only thing you pay for when you have an auto insurance policy. If you ever need to file a claim, you’ll have to pay a deductible before you receive the full amount of your insurance benefits.

Typically, policies with high premiums have the option for a low deductible, and policies with low premiums only have high deductible options. That’s not always the case, so clarifying your deductible options with your insurer is essential before binding a policy.

A liability-only policy in Georgia is typically only half the cost of a full coverage policy, so about $900 annually, plus your deductible, should you file a claim. While the short-term savings associated with a liability-only policy are tempting, a policy with minimal coverage may not always be the best option.

If you prefer to have more than liability coverage on your policy to protect you in various situations, you may consider getting a full coverage policy instead. While full coverage policies cost more than those with minimal coverage, the deductibles are often lower, putting you at a much smaller risk of financial ruin. With a minimum coverage policy, if you cause an accident and the victim files a claim with your liability coverage, once they exceed your 25/50/25 limit, you’re liable for the remainder of the expenses. 

If you’re looking to find a full coverage car insurance policy closer to Georgia’s average rate, the best way to do so is to get and compare quotes from the state’s top insurers. Lucky for you, quotes are our specialty here at Clovered.

We have a free quoting tool you can use to get quotes from top insurers in minutes. If you have any questions about your quotes or the cost of insurance in the Peach State, call us at 833-255-4117 or email us at [email protected] to speak with an agent directly.