Why Is Auto Insurance So Expensive in Atlanta?

Last Updated on November 17, 2021

Many drivers in Atlanta pay higher than average car insurance premiums. Several factors raise the price of car insurance in Atlanta, including state insurance laws, accident rates, and risk factors.

It’s not your imagination: drivers in Georgia pay some of the highest rates for car insurance in the United States. Based on 2020 insurance rankings, Georgia is the 6th most expensive state in America to insure a vehicle, with the average driver paying approximately $2,000 for a year of full coverage car insurance.

Why is auto insurance so expensive in Atlanta, Georgia? What’s the best and cheapest car insurance provider in Atlanta? How can you pay lower rates for car insurance in Atlanta? Find out everything you need to know about the price of auto insurance in the Atlanta area today.

Georgia Is One of the Most Expensive States for Car Insurance

Why Is Auto Insurance So Expensive in Atlanta?Car insurance prices vary widely across the United States. Drivers in Georgia, however, pay some of the highest car insurance premiums in America.

Georgia is one of the top 10 most expensive states in America to insure a vehicle. Statewide, the average Georgian pays roughly $2,000 per year for full coverage car insurance, which is significantly higher than the national average of around $1,400 per year.

In some rankings, Georgia is the 5th or 6th most expensive state for car insurance, trailing only Michigan, Louisiana, Florida, Texas, and California, where drivers pay more than $2,000 per year, on average.

Several factors raise the cost of car insurance in Georgia. Georgia has relatively high car insurance requirements, with drivers needing $25,000 of bodily injury liability per person, $50,000 of bodily injury liability coverage per accident, and $25,000 of property damage liability coverage. Georgia also requires uninsured motorist bodily injury coverage ($25,000/$50,000) and uninsured motorist property damage coverage ($25,000).

Yes, car insurance is expensive in Georgia – but it’s extra expensive in Atlanta due to several factors.

Big Cities Have Higher Auto Insurance Premiums

Across the United States, big cities tend to have higher auto insurance premiums than smaller cities and rural areas. Generally, you pay significantly more for car insurance in a big city than in a smaller town.

That’s why, on average, a driver in Atlanta pays over $2,000 per year for car insurance. You’re not only paying higher car insurance requirements because of Georgia state law, but you’re also paying higher car insurance because you’re in a big city.

That’s why drivers in Atlanta tend to pay higher rates for car insurance than drivers in Valdosta or Gainesville. You’re in a big city with more drivers, more traffic, and higher population density. That means more risk for insurance companies. In most cities, it also means higher crime rates – which also raise costs for insurers.

However, Atlanta drivers still pay relatively high rates for car insurance even when taking the city into account. In fact, Atlanta is expensive for car insurance even when compared directly to other cities in the United States.

Atlanta Has More Expensive Car Insurance than Other Big Cities

Even compared to other cities, Atlanta has some of the costliest car insurance in the United States.

In some rankings, Atlanta is the fifth most expensive city for car insurance in the United States, trailing only Detroit, New Orleans, Miami, and Los Angeles.

Typically, drivers in Atlanta pay 15% to 30% higher rates than the national average. That could mean paying $2,000 or more per year for car insurance. Some drivers pay $3,000 per year or more for car insurance in Atlanta.

Factors that Impact Car Insurance in Atlanta

Why is car insurance more expensive in Atlanta? Why do drivers in Atlanta pay some of the costliest car insurance premiums in the United States?

Here are some factors that impact car insurance costs in Atlanta:

Rising Costs of Healthcare: Healthcare costs have skyrocketed in the United States over the last decade, and these costs are unlikely to fall in the near future. Insurers in Atlanta cover millions of dollars in healthcare costs every year, and they pass higher costs onto policyholders in the form of higher premiums.

Rising Costs of Auto Repair: It’s not as cheap to repair a vehicle in Atlanta as it was 20 years ago. Just like healthcare costs, repair costs have risen in Atlanta, and that means higher premiums for policyholders.

Higher Population Density: Atlanta is more densely populated than smaller cities, and some ZIP codes – like ZIP codes closer to downtown – are particularly densely populated.

Traffic: Atlanta has some of the worst traffic problems in the United States. More traffic density leads to a higher risk of an accident. Cities with bad traffic also tend to have higher insurance premiums.

Crime Rates: Some ZIP codes in Atlanta have higher crime rates than other ZIP codes. Insurance companies pay for vehicle repair after vandalism or break-ins. They also compensate vehicle owners after theft. High crime rates increase costs for insurance companies in Atlanta.

High Rates of Uninsured Drivers: Approximately 12% of drivers in Georgia do not have car insurance. Uninsured drivers cost insurers millions each year. Insurers pass these costs onto policyholders.

How to Get Cheap Car Insurance in Atlanta, Georgia

Yes, it’s possible to get cheap car insurance in Atlanta, Georgia. By requesting a quote from the right companies, you can secure cheaper car insurance premiums on any type of vehicle – even as a medium risk or high-risk driver.

Some tips for reducing the cost of car insurance in Atlanta, GA include:

Removing a bad driver from your policy can impact car insurance rates. If you live in the same house as a driver with multiple at-fault claims and DUIs, for example, then you may want to exclude that driver from your policy to drop rates in half.

Best Cheap Car Insurance Companies for Drivers in Atlanta

Certain car insurance companies in Atlanta are known for charging cheaper insurance premiums than others. Based on our research, all of the following companies charge cheaper-than-average car insurance premiums in Atlanta:

  • Georgia Farm Bureau
  • Progressive
  • Allstate
  • USAA
  • State Farm

Compare quotes from multiple providers. Some Atlanta car insurance companies specialize in insuring high-risk drivers, for example, while others prefer drivers with zero accident history. By comparing rates today, you can secure the cheapest possible rates on car insurance in Atlanta.

Final Word on Atlanta Auto Insurance Rates

Yes, car insurance is expensive in Atlanta. Drivers across Georgia pay higher insurance rates than the national average, and drivers in Atlanta pay even higher rates due to several factors.

Fortunately, there are still plenty of affordable car insurance providers in Atlanta. To find the cheapest car insurance premiums in Atlanta, compare quotes online today.

James Shaffer
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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