How Major Life Events Affect Your Auto Insurance Rates in Georgia
In the Peach State, it’s not a big surprise that different life events and auto insurance rates go together like peach cobbler with the family for Sunday night dinner. That is to say that they tend to come in pairs!
In this guide, you’ll see how these different life events can play a role in the prices you pay to insure your vehicle. You’ll also see how you can save some money along the way! Let’s dive in.
Understanding Car Insurance Rates in Georgia
Georgia may have some unique things that set it apart from other states (like those beautiful old towns such as Savannah), but when it comes to car insurance rate factors, it’s pretty similar to other states in the country.
In general, things like your driving history (a spotless record can keep your premiums low, and that matters if you have a new teen driver, for example), location, coverage choices, the car you drive, and your credit score all play a part.
The Driving Forces Behind Premium Calculations
To drill down into the “driving” forces behind how premium calculations work (pun intended), here’s what you need to know:
- Driving History: A spotless record can lead to lower premiums, while accidents, traffic violations, or claims can significantly increase costs.
- Location: Urban areas with higher traffic density and crime rates typically see higher premiums than rural or suburban regions.
- Coverage Choices: Opting for higher coverage limits, lower deductibles, or additional features like comprehensive and collision coverage will raise the premium.
- Vehicle Type: Luxury vehicles or sports cars tend to cost more to insure due to their high repair or replacement costs and increased likelihood of being targeted by thieves.
- Credit Score: In Georgia, the impact of credit scores on insurance rates is tangible. Drivers with better scores are generally seen as lower risk, resulting in lower premiums.
Milestones on the Road of Life
There’s an old quote: “There are decades where nothing happens, and there are weeks where decades happen.” Maybe that quote applies to your own life, too! Things like getting married, having kids, and aging all play a role in the prices you pay to keep yourself and your car safe on the road.
Hitched or Unhitched: How Marital Status Alters Insurance Costs
Clients often ask, “Does getting married lower your car insurance rate?” Marital status is one of the often overlooked factors that can affect your car policy premiums. Statistically, insurers consider married drivers a lower risk due to their likelihood of driving more cautiously and being involved in fewer accidents. In Georgia, getting married could lower your car coverage rate by a small amount, depending on the insurer.
On the other hand, single, divorced, or widowed drivers might not enjoy such discounts, which can result in slightly higher premiums. For those in long-term partnerships, it’s worth exploring if bundling policies such as home and auto coverage can yield additional savings.
From Swaddles to Graduation Caps: Parenthood and Policy Prices
Here’s another question agents often get: “Will adding my child to my policy increase my auto insurance rate?”
It makes sense. Parenthood brings numerous financial changes, and this aspect is no exception. (Remember what the first part of this guide said about life events and auto insurance?)
While having a child itself does not directly impact your insurance rate, adding a teenage driver to your policy will. Teenage drivers are considered high-risk due to their inexperience, leading to substantial increases in premiums.
In Georgia, like in other states in the U.S., it’s common to see premiums rise by as much as 50% or more when a teen driver is added to the policy. Penny pinchers take note: there are still some ways to get affordable insurance in Georgia.
Some parents opt for separate policies for their teens to mitigate costs, while others explore discounts for good grades or driver’s education courses to offset the increase.
Just make sure you exhibit safe driving behaviors in front of your kids long before you have to teach your teen to drive (ideally without losing your mind).
The Accelerators of Age
It always feels like you’re pumping the gas pedal in life, doesn’t it? With age comes wisdom — and lower premiums. Up to a certain point, that is. Here’s what you need to know.
Young, Wild, and Insured: The Youth Tariff Cliff
Younger drivers, especially those under the age of 25, face higher car insurance premiums due to their increased likelihood of being involved in accidents. Insurers factor in the risk associated with younger drivers’ lack of experience and tendency to engage in riskier driving behaviors.
In Georgia, the “youth tariff cliff” often results in significant rate reductions when drivers reach the age of 25, provided they maintain a clean driving record. Before reaching this milestone, drivers can explore discounts such as safe driving programs or good student incentives to lessen the financial burden.
Wisdom on Wheels: Aging and Its Comforting Effect on Costs
With age comes wisdom! Rates tend to fall as you get older, up to about your early 60s. From the insurer’s perspective, they see people in their mid-30s to their early 60s as the lowest-risk drivers on the road.
At that age, you tend to have fewer accidents and exercise greater caution when on the highway (unlike when you were in your teens and twenties, blasting down the interstate with your friends).
After a certain point, though, driving becomes a bit more mentally and physically taxing. After about age 65, insurers start to gradually raise premiums. Older drivers tend to have lower reaction time and may have more accidents than those in their 30s through 60s.
However, you can still save money even in your late 60s by having a clean driving record and possibly by even taking a defensive driving course.
Residential Pit Stops
Here’s another common question agents get a lot: “Will moving increase my auto insurance rate?”
Maybe! Location, location, location. It’s not just a saying that real estate agents like to endlessly blare into your ear. It also matters to insurers. Where you park your car (which is most of the time, by the way, if you think about it) matters.
Safer neighborhoods with better drivers tend to make insurers breathe a sigh of relief. Other factors include things like living in suburbia versus dense urban environments like downtown Atlanta. Let’s dig into each of these factors to see what can be uncovered.
Relocating Residences: Navigating New Neighborhoods and Rates
Where you live in Georgia has a direct impact on your car insurance rates. Moving to a different neighborhood or city may either increase or decrease your premiums, depending on factors like traffic density, crime rates, and accident statistics in the area.
For example, moving from a rural area like Blue Ridge to a metropolitan region like Atlanta could result in a sharp premium hike due to the increased risks associated with city driving. Conversely, relocating to a quieter suburban area with lower crime rates could bring premium reductions. Be sure to update your address promptly with your insurer when moving to avoid any potential coverage issues.
Your Home’s Impact: Ownership and Insurance Interplay
Homeownership can also influence your car premiums in Georgia. Owning a home typically signals financial stability, which is a factor insurers consider when determining premiums. Many insurance companies offer discounts when policyholders bundle their home insurance and auto protection.
However, renters may face slightly higher premiums due to the perceived lower stability compared to homeowners. Nonetheless, renters can still explore multi-policy discounts by bundling renters insurance with their auto policy.
Make Sure You’re Covered No Matter Where Life Takes You
In this guide, you received a comprehensive overview of the different car insurance rate factors. Things like having children added to your policy, getting married, and moving can all play a role in the final calculation you pay. But as some parting wisdom, remember to stay focused on the fundamentals: Drive safely, and tailor your coverage to your life needs.
That being said, a good agent can help you no matter where life takes you. At Velox Insurance, we’re here to help you and your family through all life stages. To get started with your custom auto quote, give us a call today at (855) 468-3569, request your free quote online, or visit your local Velox office today and speak with us in person. We look forward to driving on the road ahead with you!
