Georgia Car Insurance Rates to Rise

Drivers all over Georgia may see significant increases in their car insurance rates due to a new law that took effect on the first of October this year, according to The Times-Union.  Some rates may increase as much as 81 percent for certain drivers, since insurance companies are setting their own rates under the new law.  The state Insurance Comissioner's Office reports that nineteen insurance companies have changed their rates for new or renewing customers so far, and fourteen of them have increased their rates between 2 percent and 11 percent.  The percentages are even higher for certain motorists, however. 
A male driver at the age of 28 insured by Central Mutual Insurance Company and convicted of DUI, an accident, or other violations, for example, will most likely see his rate increase by 81 percent.  Before October 1, 2008, the state had the authority to review insurance rates and approve them before they were set, but the new law allows companies to set their own rates.  As a result, 21st Century Insurance Company may increase rates by 9 percent, despite a 7.5 percent increase that occurred this August.  Approximately 60,000 drivers will be affected by the largest increases (those between 24.5 and 81 percent).  Some companies will be reducing their rates, such as State Farm and Lincoln General.