Car Insurance Stands to Rise

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

Who's Going UP?

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.

The increases are much higher for some drivers. A 28-year-old man with a 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 insurance giant 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. \

WHO'S NOT GOING UP?

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 cut rates the most, by 10 percent. \

Why change the law?

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.

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

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

"These companies may come back every few months and raise rates if they wish," said Mr. Oxendine. "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.

"It is obvious, I do not want to see anyone get taken advantage of," Mr Chapman said.