Car insurance rates for 2M Georgia drivers about to drop 3%
ATLANTA - More than 2 million Georgia drivers will see lower auto insurance costs after State Farm received approval for another rate reduction in the state.
What we know:
The Office of the Insurance and Safety Fire Commissioner confirmed that State Farm Mutual Automobile Insurance Co. was granted a 3% personal auto rate cut, bringing the company’s total average decrease in Georgia to 10% over the past year. State Farm Fire and Casualty Co. also secured approval for an additional 1.5% rate reduction, according to InsuranceBusinessMag.com.
State Farm estimates that since December 2024, its lower rates have saved policyholders roughly $400 million annually, or about $190 per insured vehicle. The reductions are attributed to fewer physical damage claims and statewide legal and insurance reforms.
What they're saying:
Insurance Commissioner John King said recent tort reforms — including limits on third-party litigation funding and revised rules for attorney fees and medical billing — have helped create a more stable insurance market. He credited fraud-prevention efforts and legislative changes for helping deliver more affordable premiums.
State Farm senior vice president Allyson Watts said the company is committed to helping customers save while maintaining strong agent support and customer service.
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Why you should care:
The latest rate change will go into effect for new business beginning Nov. 28, 2025. For renewing business, it will go into effect Dec. 28, 2025, according to State Farm.
According to Banrate.com, the average cost of full coverage, including collision and comprehensive insurance, is $2,909 per year ($242 per month) in the state of Georgia. A 3% decrease would mean that the cost would drop a little over $87 per year to approximately $2,821 per year. That is a savings of approximately $7.25 per month.
Car insurance rates in Georgia are "slightly higher" than the national average, which are $820 for minimum and $2m697 for full coverage. The annual average rate for residents of Atlanta is reported to be 20% higher than the state average.