Posted by: Adam McCann

As of 2016, the Georgia charged the fourteenth most expensive car insurance premiums in the country. That makes sense considering Georgia’s roads include over 257,000 lane miles, a larger road system than all but eight other states. In addition, their motor vehicle occupant death rate is on the high side, with the twenty-third highest in the country (higher than the national rate). Georgia drivers must carry at least $25,000 of coverage per person and $50,000 per accident for bodily injury and $25,000 for property damage. They must also have $25,000 per person and $50,000 per accident in uninsured motorist bodily injury coverage and $25,000 in uninsured motorist property damage coverage.

In this report, WalletHub dug deeper into the cost of premiums by using data collected from five of the largest auto insurers in the state (with a cumulative market share of 68%). The results reveal how individual factors such as gender, age and coverage type can impact a driver’s overall rate.

1. Key Findings
2. Geographic Impact
3. Demographic Impact
4. Auto Usage Impact
5. Type of Coverage Impact
6. Driving Record Impact
7. Premium Differences by Credit Score
8. Regional Characteristics Correlated with Maryland Car Insurance
9. Customer Satisfaction and Market Share
10. Methodology

Key Findings

 

Embed on your website<a href="https://ift.tt/35M17L1"> <img src="//d2e70e9yced57e.cloudfront.net/wallethub/posts/67570/2019-georgia-car-insurance-facts.png" width="700" height="2060" alt="" /> </a> <div style="width:700px;font-size:12px;color:#888;">Source: <a href="https://ift.tt/2MN8d9l>  

Geographic Impact

Premium Differences by City – The most expensive city is 131% more expensive than the least expensive

1= Least Expensive

 

Rank	City	Premium Relative to Baseline		Rank	City	Premium Relative to Baseline
1	Newnan* (baseline)	100%		16	Alpharetta	171%
2	Loganville	111%		17	Douglasville	173%
3	Dalton	143%		18	Covington	183%
4	Augusta	147%		19	Stockbridge	183%
5	Warner Robins	150%		20	Lawrenceville	184%
6	Canton	152%		21	Suwanee	184%
7	Cumming	152%		22	Mcdonough	184%
8	Savannah	156%		23	Lilburn	187%
9	Columbus	159%		24	Powder Springs	196%
10	Woodstock	161%		25	Norcross	201%
11	Acworth	164%		26	Duluth	204%
12	Kennesaw	166%		27	Atlanta	222%
13	Smyrna	168%		28	Lithonia	225%
14	Roswell	168%		29	Stone Mountain	228%
15	Marietta	171%		30	Decatur	231%

*The lowest premium was observed in Newnan, and it was used as a baseline as a result. The baseline value is $1,074.35/year

Premium Differences by City Size – Large and Small cities are up to 13% more expensive than medium cities

*The lowest premium was observed in the medium cities group, which was used as a baseline as a result. The baseline value is $1,686.82/year. Small City – Population of less than 100,000; Medium City – Population between 100,000 and 300,000; Large City – Population of more than 300,000.

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Demographic Impact

Premium Differences by Gender – Men pay ~1.75% more

*The lowest premium was observed in the female group, which was used as a baseline as a result. The baseline value is $2,575.34/year.

 

Premium Differences by Age – 16 year olds pay 458% times more than 66 year olds

*The lowest premium was observed in the 66 years old group, which was used as a baseline as a result. The baseline value is $2,464.85/year.

 

Premium Differences by Marital Status – Single individuals pay 1.44% more

*The lowest premium was observed in the married group, which was used as a baseline as a result. The baseline value is $2,538.74/year.

 

Premium Differences by Profession – There is no apparent difference in premiums by professional career in Georgia

     

*The premium observed was $2,575.34/year.

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Auto Usage Impact

Premium Differences by Type of Use – Small business owners pay 12% more on car insurance

*The lowest premium was observed for the commuting to work/school group, which was used as a baseline as a result. The baseline value is $3,170.67/year.

 

Premium Differences by Mileage – No big differences

*The lowest premium was observed in the 3,000 miles group, which was used as a baseline as a result. The baseline value is $2,699.41/year.

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Type of Coverage Impact

Premium Differences for Comprehensive & Collision Coverage – Adding coverage can increase your car insurance costs by 74%

*The lowest premium was observed in the no coverage group, which was used as a baseline as a result. The baseline value is $1,476.80/year.

 

Premium Differences by Liability Coverage – Deluxe coverage costs 63% more than the state’s minimum requirement

*The lowest premium was observed in the minimum coverage group, which was used as a baseline as a result. The baseline value is $1096.96.

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Driving Record Impact

Premium Differences Based On Driving Violations – Reckless driving on the last 3 months increases costs the most, on average around 135%

*The lowest premium was observed in the no violations group, which was used as a baseline as a result. The baseline value is $1,549.80/year.

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Regional Characteristics Correlated with Georgia Car Insurance

 

 

	Lowest	Highest	∆ Highest vs Lowest Premium Difference	Correlation Factor
Hispanic Pop	Lithonia(2%)	Dalton(51%)	-37%	-0.09
African American Pop	Cumming(3%)	Lithonia(92%)	48%	0.19
Asian Pop	Powder Springs(1%)	Duluth(26%)	-10%	0.22

*Correlation factor for each metric is calculated across the 30 largest cities in Georgia

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Complaints and Market Share by the Largest Car Insurance Companies in Georgia

Company	Market Share	Complaints Index	WalletHub User Reviews	Overall Customer Satisfaction Rank
Liberty Mutual	6%	1.38	3.6 (194 reviews)	1
Allstate	7%	1.07	3.8 (210 reviews)	2
Progressive	10%	0.69	3.6 (298 reviews)	T-3
Travelers	6%	0.63	3.2 (96 reviews)	T-3
Geico	10%	0.79	3.8 (541 reviews)	5
Esurance	4%	0.90	4.1 (157 reviews)	6
Nationwide	3%	0.81	4.1 (204 reviews)	7
State Farm	21%	0.63	4.0 (427 reviews)	8
USAA	6%	0.61	4.1 (190 reviews)	9
Georgia Farm Bureau	6%	0.62	4.3 (10 reviews)	10

*Source: Office of Insurance and Safety Fire Commissioner, 2018. Reviews data is accurate as of 10.01.2019.

The complaints index is the ratio between the market share of complaints divided by the market share of premiums written. The lower the index, the better.

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Methodology

In order to examine how auto insurance premiums vary within Georgia, we collected insurance quotes from the websites of five of the largest providers in the state. The five insurance providers chosen were give on its availability to provide online quotes.

City Data Assumptions:City Selection: We chose the 30 most populated cities, according to U.S. Census Bureau data.City Zip Code selection: For each quote, we were required to enter a zip code on the insurer’s quoting platform. For each city we picked the zip codes with the highest population, so that on a cumulative basis those zip codes represent the most of the total population of that city.

For all demographic and insurance details data across the report, we have used the 31210 zip code, unless specified otherwise. The average premium amount across all cities for the base case scenario is closest to the average premium obtained for this zip code; as such it was chosen as to represent average fluctuations between the different factors.

Assumptions of the Base-Case Driver and Automobile

Experienced Female Driver
2014 Toyota Camry
	DRIVER CHARACTERISTICS:
	Licensed: 20 Years
	Age: 36 Years
	Employment Status/Profession: Unemployed
	Marital Status and Gender: Single Female
	Membership in Organization: None
	Traffic Violations: None
	Annual Mileage: 15,000
	Daily Use Purpose: Commute to School/Work (20 Miles Each Way)
	Days per Week: 5
	COVERAGE:
	$50,000 for Injury/Death to One Person
	$100,000 for Injury/Death to More than One Person and $50,000 for Damage to Property
	Collision Coverage with Uninsured Motorist of $30,000
	Collision Coverage with Underinsured Motorist of $60,000 (UMUND)
	$500 Collision Coverage (COLL)
	$500 Comprehensive Coverage (COMP)
	VEHICLE CHARACTERISTICS:
	2014 Toyota Camry L, 4-Cyl., Sedan
	Assume: driver-side air bag, standard performance, no anti-theft device

In order to obtain comparable results across different scenarios, we kept the car information the same for each quote. Starting with the above base case, we altered the parameters one at a time and extracted the resulting quotes to outline the differences across gender, marital status, age, profession, annual mileage, and daily use of car.

For traffic violations and Liability coverage, full details were not included in the above charts for simplicity sake. They are as follows:

Traffic Violations from the Past 36 Months:

• 1 Speeding Ticket, 1–19 Miles Over Limit (3 Months Ago)
• Reckless Driving – 1 Speeding Ticket, 20+ Miles Over Limit (3 Months Ago)
• Improper Turn/No Signal (3 Months Ago)
• DUI (12 Months Ago)
• 1 Accident, No Casualties, $1000+ Claim (12 Months Ago)
• 1 Accident, No Casualties, $1000+ Claim (3 Months Ago)
• Clean Driving History (Base Case)

Liability coverage:

• Minimum: Mandatory state minimum liability limits for Georgia: $25,000 per person and $50,000 per accident for bodily injury, $25,000 for property damage and no collision or comprehensive deductible.  
• Economy Liability: $25,000 per person and $50,000 per accident for bodily injury and underinsured bodily injury liability, and $25,000 for property damage.
• Economy Full Coverage: $25,000 per person and $50,000 per accident for bodily injury and underinsured bodily injury, $25,000 for property damage, $500 collision and $500 comprehensive deductible.
• Basic: $50,000 per person and $100,000 per accident for bodily injury, $30,000 per person and $60,000 for underinsured bodily injury, $30,000 for property damage, $500 collision and $500 comprehensive deductible.
• Premium: $100,000 per person and $300,000 per accident for bodily injury, $50,000 per person and $100,000 for underinsured bodily injury, $50,000 for property damage, $500 collision and $500 comprehensive deductible.
• Deluxe: $100,000 per person and $300,000 per accident for bodily injury, $50,000 per person and $100,000 for underinsured bodily injury, $50,000 for property damage, $250 collision and $250 comprehensive deductible.

Company Data Assumptions:

List of Insurance Providers: The ideal list of providers includes 10 out of the top 20 with the highest market share.

Complaints Index: The complaints index was obtained by dividing the total complaints for each individual company by the total number of complaints across all insurance companies in Georgia (complaint market share), all divided by total market share. The Overall Customer Satisfaction Rank was determined by averaging the rankings for the Complaint Index and WalletHub User Review categories.

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