OAI: Georgia Auto Insurance Rate Cut Should Prompt Reevaluation of Coverage

State Farm’s recent announcement that it is cutting overall rates for its Georgia auto policyholders should serve as more than just a rare bit of bright financial news, according to Online Auto Insurance (OAI).

The impending rate reductions could also give consumers a chance—and maybe even a few dollars—to review their Georgia car insurance policies to ensure they are sufficiently covered and use any savings to pay for additional coverage they may have put off as too costly.

State Farm officials say the rate cut—which takes effect Nov. 21—will lower overall rates by a statewide average of more than 2 percent, saving policyholders throughout the Peach State more than $23 million a year.

Not all types of coverage will become less expensive, and premiums will continue to vary according to where policyholders live, what and how far they drive and other factors. 

Georgia law requires that all motorists carry enough liability coverage to pay for damages of up to $25,000 for bodily injury to one person, up to $50,000 per accident and up to $25,000 in property damage caused by policyholders. 

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But as Insurance Commissioner Ralph T. Hudgens has pointed out, those liability coverages pay only for damage a policyholder does to other motorists and their property. And those levels may not provide enough financial protection in the event of a crash. 

According to the Insurance Information Institute (III), drivers who are found liable for bills that exceed the amount their policy will cover can find themselves having to pay the difference out of pocket. 

Industry experts say drivers should look into other coverage types such as collision and comprehensive, which will cost a little more than a bare-bones policy but will also provide greater peace of mind. 

OAI advises Georgia drivers who are insured by State Farm and other companies to call their agent or coverage provider and find out how much it would cost to increase their coverage to a level at which it would fully cover the financial fallout from a serious accident.