Georgia drivers may soon have to pay more for car insurance, due to changes that went in effect May 22.
A major insurance carrier set a planned rate increase that is currently still under state investigation. However, due to the fact that the investigation was not completed by the effective May 22 date, auto insurance rates for drivers may now rise without issue.
The Insurance Journal reports that the average increase in premium rates for the state is expected to be about a 25%, yet the Georgia Insurance Commissioner Ralph Hudgens warned that some policyholders may see a rate hike as high as 58%. The rate change is able to go through without state approval due to a legislative change that occurred in 2008. Instead of requiring commissioner approval for rate hikes, the carriers are allowed to go ahead and file them for later review by the state, also known as a “file-and-use”.
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Of course, insurance carriers have their own reasoning for raising premiums. An economy with solid job growth and inexpensive gas prices means that more drivers are out on the road. As a result, there have been more collisions, more claims and more costly insurance payouts.
Source: The Insurance Journal
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