Auto Insurance Rates Increase Hikes of 2 to 11 Percent Common

Thousands of Georgia drivers can see them in substantial increases in auto insurance rates - as many as 81 percent for some drivers - insurance companies how to start fixing its own rates under a new law which came into force on 1 October.

Nineteen insurance companies have set new rates that renewal or new customers will encounter, 14 enacting increases averaging between 2 percent and 11 percent, depending on the state Insurance Commissioner's Office.

But the increases are much higher for some drivers. A 28-year-old male with the DUI conviction, accident or other infringements, which is insured by the Central mutual What can you expect the rate to climb 81 percent.

Drivers insured by 21st Century Insurance Co. will see their rates climb at least 9 percent, up by 7.5 per cent increase in the insurer received in August, when the state still had authority to review and approve insurance rates earlier.

"We are seeing a lot of companies coming in very serious fluctuations," Insurance Commissioner John Oxendine said.

The biggest increase from 24.5 per cent and 81 per cent, would affect about 60,000 drivers.

Six of the companies raising rates, in the 21st Century, are owned by American International Group, or AIG, which is in line for the multibillion-dollar rescue of the government. AIG officials did not respond to a request for comment.

The four companies will lower their rates to a fraction of a percent, including State Farm Mutual Insurance Co. Association, the state's largest insurer with 1.4 million policies. Lincoln General Insurance SA will be to reduce the rates the most, by 10 percent.

When state lawmakers debated the law, supporters said allowing insurers to set their own rates would spur competition and improve prices for consumers. It passed the House and Senate with only 13 votes against.

Insurance Commissioner John Oxendine fought the change, which was added to the bill to allow drivers to enhance their insurance uninsured drivers.

Oxendine said Friday he doubts the law will be more and increased competition.

"These companies may come back every few months and raise rates, if they want," Oxendine said. "I think that the key will be what happens next year."

Sen. Jeff Chapman, R-Brunswick, voted against the bill. He said he hoped eventually to be carried out rates down.