Auto insurance bills skyrocket in Georgia but regulator powerless

[Southern Dad]

I get my renewal letter for my auto insurance. My auto insurance premium was going from $1275 to $1826 for a six month policy. Four cars on the policy, three drivers (including one teenager). You can imagine my surprise when I see this 30% jump considering that none of us have had any violations, accidents, or other claims. I called around to a few other companies, all higher then my $1275 but lower than the $1826. Yes, I was with Allstate.

It seems that auto insurance companies in Georgia no longer need to get approval to raise rates. I'm sure that seemed like a good idea at the time.

Auto insurance bills skyrocket in Georgia but regulator powerless

Georgia led the nation with the highest increase in personal auto insurance rates in 2016, according to a new analysis, but rising rates is nothing new for the state’s drivers.

Georgia ranked either first or second nationally for increases in the three previous years, too.

State Insurance Commissioner Ralph Hudgens said there is little he can do about skyrocketing rates because of a law passed a decade ago that makes it almost impossible for the government to stop such increases. Hudgens voted for the law while serving in the Georgia Senate, and he says he has no regrets about supporting it.

In the new normal, double-digit jumps and two increases a year have become routine. The biggest hike among the state’s large insurers hit last year, when Allstate imposed a stunning 25 percent average rate boost.

Why Georgia's auto insurance rates are skyrocketing

 

[Gaius46]

With GEICO, who I've been with for 20 years, I pay that much in NY for 2 cars and 2 people - both of us over with clean records. Granted one's a fully insured muscle car but the other's a beater just liability.

 

[PirateMk1]

I get my renewal letter for my auto insurance. My auto insurance premium was going from $1275 to $1826 for a six month policy. Four cars on the policy, three drivers (including one teenager). You can imagine my surprise when I see this 30% jump considering that none of us have had any violations, accidents, or other claims. I called around to a few other companies, all higher then my $1275 but lower than the $1826. Yes, I was with Allstate.

It seems that auto insurance companies in Georgia no longer need to get approval to raise rates. I'm sure that seemed like a good idea at the time.

Problem is even with regulation rates have been going up. I use Allstate myself but I may be switching. Georgia has mandatory insurance for the road and not quite enough insurance competition to keep rates down. Same with many states.

 

[Chomsky]

There's certain things the free-market does well (ex: consumer goods), and certain things it does not (ex: healthcare).

I have not given thought to it's effect on the insurance industry, but it surely looks like you got caught in the deregulation.

I also suspect it's the teenager that's one of the major cost components.

 

[Southern Dad]

Problem is even with regulation rates have been going up. I use Allstate myself but I may be switching. Georgia has mandatory insurance for the road and not quite enough insurance competition to keep rates down. Same with many states.

I have had insurance increases over the years but never 30% in one six month period.

 

[Southern Dad]

There's certain things the free-market does well (ex: consumer goods), and certain things it does not (ex: healthcare).

I have not given thought to it's effect on the insurance industry, but it surely looks like you got caught in the deregulation.

I also suspect it's the teenager that's one of the major cost components.

Yes, but that teenager was on the policy the entire last six month policy period. Adding her raised the insurance premium, that is why I was so shocked to see the increase this time. No accidents, no violations, no claims.

 

[Chomsky]

Yes, but that teenager was on the policy the entire last six month policy period. Adding her raised the insurance premium, that is why I was so shocked to see the increase this time. No accidents, no violations, no claims.

Well hate to say it, but after all the havoc of the current storm, I'd expect rates to go up even further. It seems to happen after large national disasters.

 

[PirateMk1]

I have had insurance increases over the years but never 30% in one six month period.

Allstate is betting that 30% isn't going to bite them in the ass. Whether that happens or not is up to you. First thing I would do is see if they will be more reasonable in their rate hike. I would drop em myself if they don't negotiate as it shows NO respect for your business with them. I would go with somebody with a better rate and service. I buy lots of insurance for all sorts of reasons and I don't hesitate to drop a company that doesn't respect me enough to not bend me over on a rate hike.

 

[Cigar]

Just wait until they have to start paying for those Cars underwater in Texas ... that Love will also be spread around.

Back in 2001 after Sept 11th I was consulting at CNA Insurance and believe it or not, they made back every penny they had to pay out in less than 5 years. Most of that was just dropping insurers and Upping everyone else.

**** does flow down ...

 

[Southern Dad]

Allstate is betting that 30% isn't going to bite them in the ass. Whether that happens or not is up to you. First thing I would do is see if they will be more reasonable in their rate hike. I would drop em myself if they don't negotiate as it shows NO respect for your business with them. I would go with somebody with a better rate and service. I buy lots of insurance for all sorts of reasons and I don't hesitate to drop a company that doesn't respect me enough to not bend me over on a rate hike.

My home is insured with State Farm and my RV is insured with Progressive. I've always thought about moving them to one company but it has worked better having them separate until now. I wound up getting different companies because USAA actually farms out their RV coverage to Progressive in my area.

But you hit it on the head. I've called them, if they can't match the lowest quote that I get, I'll be getting a new policy from someone else.

 

[Dittohead not!]

I've been with several insurers who did the same thing, quoted me a low rate for the first few months, then raised the rates by 25 -30%. They must have thought I wouldn't notice, or wouldn't shop around. One of them even asked me why I didn't ask for a rate quote from them before I switched, meaning, if we'd have known you were getting quotes, your rates from us would have been lower.

It's a cutthroat business for sure.

I've been with California Casualty for years now, and they never have raised my rates that much. Moreover, they have a year contract, so, no low rates for three or six months, then spike them up.

 

[Kal'Stang]

I get my renewal letter for my auto insurance. My auto insurance premium was going from $1275 to $1826 for a six month policy. Four cars on the policy, three drivers (including one teenager). You can imagine my surprise when I see this 30% jump considering that none of us have had any violations, accidents, or other claims. I called around to a few other companies, all higher then my $1275 but lower than the $1826. Yes, I was with Allstate.

It seems that auto insurance companies in Georgia no longer need to get approval to raise rates. I'm sure that seemed like a good idea at the time.

Dang...feel for ya man. I have one car with full coverage for $804/year. Farmers Insurance is the company I go through. And the price has been the same ever since I got the policy almost 5 years ago.

 

[trouble13]

There's certain things the free-market does well (ex: consumer goods), and certain things it does not (ex: healthcare).

I have not given thought to it's effect on the insurance industry, but it surely looks like you got caught in the deregulation.

I also suspect it's the teenager that's one of the major cost components.

Its not really operating by free market principles if people are mandated to purchse the product.

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[Chomsky]

Its not really operating by free market principles if people are mandated to purchse the product.

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That is true.

 

[Dittohead not!]

Its not really operating by free market principles if people are mandated to purchse the product.

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Is food bought and sold by free market principles?

Try getting along without that.

 

[trouble13]

Is food bought and sold by free market principles?

Try getting along without that.

Your are full of hyperbolic hogwash today, Are you really trying to contend that food would not exist in a free market system. That is one of the silliest things I have heard yet. Good luck defending that position.

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[Dittohead not!]

Your are full of hyperbolic hogwash today, Are you really trying to contend that food would not exist in a free market system. That is one of the silliest things I have heard yet. Good luck defending that position.

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That is quite the opposite of what I posted.

Insurance and food are necessities. Both are bought and sold in a (relatively) free market. That we need auto insurance in order to operate a motor vehicle is not evidence that insurance is not a free market commodity.

 

[trouble13]

That is quite the opposite of what I posted.

Insurance and food are necessities. Both are bought and sold in a (relatively) free market. That we need auto insurance in order to operate a motor vehicle is not evidence that insurance is not a free market commodity.

insurance is not a necessity it is a gov mandated luxury that society provides.

food however is a necessity and it does not operate in a free market economy. You would need to eliminate subsidies and gov regulations for it to be anything close to a free market

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[Dittohead not!]

insurance is not a necessity it is a gov mandated luxury that society provides.

food however is a necessity and it does not operate in a free market economy. You would need to eliminate subsidies and gov regulations for it to be anything close to a free market

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Car insurance is a necessity if you're going to drive a car. I suppose if you live in New York, having a car could be considered a luxury. Here in California, not so much. As for it being "government mandated," it's only mandated if you're putting other's property and lives at risk by driving a car, and you can't drive one without doing so. Personally, I'd rather have that egregious government mandate than have to deal with more uninsured drivers than we already have.

Neither insurance nor food is totally "free market," but both do operate by the laws of supply and demand, and competition.

 

[trouble13]

Car insurance is a necessity if you're going to drive a car. I suppose if you live in New York, having a car could be considered a luxury. Here in California, not so much. As for it being "government mandated," it's only mandated if you're putting other's property and lives at risk by driving a car, and you can't drive one without doing so. Personally, I'd rather have that egregious government mandate than have to deal with more uninsured drivers than we already have.

Neither insurance nor food is totally "free market," but both do operate by the laws of supply and demand, and competition.

your talking in too many circles for me to keep up with. neither food nor insurances operates in a free market but both could. What is your argument with that statement? At this point you just seem to be arguing for the sake of arguing.

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[Perotista]

I get my renewal letter for my auto insurance. My auto insurance premium was going from $1275 to $1826 for a six month policy. Four cars on the policy, three drivers (including one teenager). You can imagine my surprise when I see this 30% jump considering that none of us have had any violations, accidents, or other claims. I called around to a few other companies, all higher then my $1275 but lower than the $1826. Yes, I was with Allstate.

It seems that auto insurance companies in Georgia no longer need to get approval to raise rates. I'm sure that seemed like a good idea at the time.

For the last several years in Georgia I've been paying around 800 every six months for two vehicles. So I went back and checked this years out. The price did indeed increase, but from around 800 give or take to close to 900. Since both vehicles come due at on different months, I hadn't paid much attention. I have State Farm, not All State.

 

[Cephus]

That is quite the opposite of what I posted.

Insurance and food are necessities. Both are bought and sold in a (relatively) free market. That we need auto insurance in order to operate a motor vehicle is not evidence that insurance is not a free market commodity.

That's ridiculous. You don't drop dead if you don't have car insurance. Many people did just fine for many years without it before the government started mandating that if you owned a car, you had to have insurance. The insurance industry doesn't have to compete for your business, they just have to compete for their slice of the pie that exists whether anyone wants it or not.

 

[Lord Tammerlain]

That's ridiculous. You don't drop dead if you don't have car insurance. Many people did just fine for many years without it before the government started mandating that if you owned a car, you had to have insurance. The insurance industry doesn't have to compete for your business, they just have to compete for their slice of the pie that exists whether anyone wants it or not.

I believe car insurance today is mandated not to protect the driver that has the insurance but the person/s that driver hits.

I expect most drivers if they hit someone will not have the money on hand to pay for the injuries and damages to the people they injured. A serious vehicle accident could result in some one being a quadriplegic with medical bills in the hundreds of thousands of dollars. The person who hit that person unless quite rich, will not have the money to pay for that without insurance.

You can get in many areas just Personal Liability and Property Damage insurance to compensate the people who are hit and not get insurance to cover damage to your car

 

[Dittohead not!]

your talking in too many circles for me to keep up with. neither food nor insurances operates in a free market but both could. What is your argument with that statement? At this point you just seem to be arguing for the sake of arguing.

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My point is that the government requiring drivers to have auto insurance does not preclude a free market for said insurance.

 

[Dittohead not!]

I believe car insurance today is mandated not to protect the driver that has the insurance but the person/s that driver hits.

I expect most drivers if they hit someone will not have the money on hand to pay for the injuries and damages to the people they injured. A serious vehicle accident could result in some one being a quadriplegic with medical bills in the hundreds of thousands of dollars. The person who hit that person unless quite rich, will not have the money to pay for that without insurance.

You can get in many areas just Personal Liability and Property Damage insurance to compensate the people who are hit and not get insurance to cover damage to your car

Exactly. The only insurance that is mandated is liability. If your car is demolished in an accident, and it's your fault or a one car crash, you're out of luck and the government doesn't care. If, on the other hand, you crash into my car, and it's your fault, then you'd better have insurance.