August 25, 2003
Albany- Beginning September 15th, car insurance companies will have the go ahead to raise rates. State Farm Mutual, which insures nearly 30% of all Georgia drivers, will have one of the largest increases with an average 4.2% jump in rates.
"It's very expensive running insurance," says Insurance agent Linda Reed. "People think insurance companies are the richest people in the world, and as a consumer I probably think that too. But, you have to take into consideration that insurance companies pay out millions and billions of dollars in claims every year," she explains.
With the rising costs of repairs, parts, labor, and medical costs price hikes may be the only way for companies to stay afloat. There may not be anything you can do to dodge paying higher premiums, but agents say you can take measures to get a lower rate.
"Probably the first thing they need to do is sit down with their agent and review their coverages. Make sure they understand what they have on their policy, and it's what they want and are willing to pay for," says State Farm Agent Jan Cooper.
Cooper says drivers fuming over higher rates should consider increasing deductibles and taking advantage of the dozens of discounts companies offer, both of which can shave dollars off your premiums.
Agents say while most people will see an increase, not everyone will endure higher payments. Nationally rates are expected to rise an average of 7% to 8%.
Posted at 5:00 PM by elaine.armstrong@walb.com
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