Car insurance in Georgia: What affects your rate and why?



ATLANTA – Car insurance rates come to mind when most people think about car accidents or speeding tickets, but they are not the only factors that could lead to a higher rate.

Channel 2 Action News spoke to several Georgia drivers who said their monthly rates ranged from about $230 to $400.

Georgians are paying more for car insurance than previous years. Some people get hit harder than others, but not always because of their driving record.

We’re digging into the factors some say are unfair in determining rates, Tuesday on Channel 2 Action News at 5 p.m. 

The differences come from several factors.

Age, place of residence, and type of vehicle are all factors, former insurance commissioner Tim Ryles said. 

Channel 2 Action News found that in Georgia, insurance companies also take into account your credit score, even your zip code. 

[READ: How to shop for a new auto insurance policy]

“Simply because the frequency of accidents is going to be higher in one zip code versus another, or the cost of accidents will be higher in one zip code versus another,” University of South Carolina Professor Robert Hartwig said.

Insurers do not look at income, but rather, focus on risk and risk alone, Hartwig added.

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