Why does my auto insurance rates continue to increase with a clean driving record?

This is a common question asked by just about every insurance consumer. There are numerous factors that contribute to rate adjustments. Although your personal driving history does play a role, it is not the ONLY factor. Two main reasons that you may be seeing change in your auto insurance rates are based on overall state losses/payouts and your state's auto fatality history. Lets start with breaking down how each of these can affect your rates.

- A State Losses/Payouts: An insurance carrier will generally go into each year with a forecast on what they expect to payout for accidents or claims in a given year. The insurance industry is based on the "Law of Large Numbers" which means that an insurance carrier is trying to minimize risk by having a large number of policyholders to help reduce exposure associated with losses or claims. When the payout for losses exceed the expected amount then insurance carriers are forced to compensate. This does NOT mean that everyone's rate change is the same. Obviously policyholders that have experienced a loss will see a larger change versus someone who didn't have a loss.

- A State's Auto Fatality Rate: Fatality rates of a state will play a major role in a company's rate. Due to the fact that the death of a driver or claimant will usually require a higher payout for the insurance provider, the carrier has to account for these numbers annually. Georgia has consistently been rated among the top when it comes to auto fatalities. Georgia, in 2019, is averaging approximately 100 auto fatalities per month! Insurance carriers will have to utilize these numbers when generating their proposed rate changes for a given year. You can check your states auto fatality rates on either your state's DOT or DMV websites. Here is a link to Georgia's DOT website: http://www.dot.ga.gov/DS/SafetyOperation/DAAA