Understanding rising auto insurance s in Georgia
ALBANY, Ga. (WALB) - If your car insurance has increased since 2023, you are not alone. In Georgia, drivers are spending up to 3.5% of their income on auto insurance, according to Bankrate.com.
Chad Brooks, the owner of Brooks Body Shop, said he is experiencing higher costs in every aspect of the operation.
“We see it across the board, I mean labor, material costs, parts cost, and also freight cost. We have seen like last year a 26% increase just in liquid paint cost alone,” Brooks said.
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While product prices are increasing, Brooks says the procedure for some repairs like damaged bumpers is more complicated than ever, even if it seems like a minor repair.
“There are certain procedures that you have to follow if a bumper Is damaged in front of a sensor,” Brooks said. “Some of them cannot be repaired, and some of them can only have a minor repair. Most of them have to be replaced, and then you have to calibrate the sensors, whereas before you didn’t have the sensor.”
Across the country, insurance rates are up 26% according to Bankrate.com. While this price increase may not be directly tied to inflation, in the years following the COVID-19 pandemic, economist Ellis Heath with Valdosta State University says this increase could be a market adjustment to keep up with the rising cost body shops are seeing.
“If insurance were going up because of inflation, it would have to be because prices in general are going up across the board so insurance companies are having to charge more to keep up with the lower domestic, in this case, the dollar. and that’s how you would see inflation and insurance costs related,” Health said.
That could explain why your average annual insurance in Georgia has gone up $67. To save money on your policy, Brooks recommends shopping around to find policies that better suit your budget.
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