Inflation causes insurance prices to rise across Georgia

Published: Jun. 5, 2023 at 10:55 PM EDT|Updated: Jun. 5, 2023 at 11:18 PM EDT
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SAVANNAH, Ga. (WTOC) - Inflation is affecting just about every aspect of our lives, from fast food to gas, and to home and auto insurance.

According to the Insurance Information Institute in Georgia, we are already over the national average by over $100.

It’s really as simple of an explanation as the prices of materials to rebuild or fix go up, the insurance prices follow.

“Some companies are seeing an increase of 10% for auto and 10-15% for home insurance,” said Steve Manders with the State Commission of Insurance.

The price of living is rising and insurance isn’t always in the budget for everyone.

”I have some friends who are self-insurance which means that they keep enough money in the bank that if something would happen they can fix it, and not have to spend as much money on insurance,” said Sandy McCloud, a resident of Tybee Island.

But those who choose to have coverage, are paying a prettier penny than before.

In 2023, according to the Insurance Information Institute, Georgia’s average home insurance premium is 1362, but the national average is 1272.

James Hollands has been a homeowner in Savannah for 28 years and learned first hand when a storm hits, insurance is non-negotiable.

“I mean, I had the deductible for $2000 when Matthew hit and I mean who didn’t have $2000 worth of damage,” said Holland.

He has been with his insurance company since the early 2000s and says he feels blessed not to feel the effects of insurance prices, but right down the road, realtor Sandy McCloud says they aren’t so lucky.

“Since I moved out here in ‘94, it’s gradually getting more and more , but some companies stopped writing policies for east of 95,” said McCloud.

But the good news is that it could be looking up, the climb is slowing down.

“It’s not as steep as it was before,” said Manders.

Steve Manders says that there are a lot of factors that have gone into why insurance rates have gone up.

However, he says that he has seen the market worse years ago so he hopes to see that trend level out soon.