HomeInsuranceHigh crime rates in your area can affect car insurance premiums

High crime rates in your area can affect car insurance premiums

Financial Services Company Bankrate said the average premium for full coverage in Georgia is $2,085 a year.

MACON, Ga. — The holiday season can be a very expensive time of year.

Adding to that, you may have noticed an increase in your car insurance rates this year. 

Financial services company Bankrate said the average premium for full coverage in Georgia is $2,085 a year. 

And last week, a Bader Scott study using 2022 data from the G.B.I. claimed Bibb County had one of the state’s highest crime rates. 

We noticed people on the neighborhood watch app Nextdoor asked about a connection between crime and car insurance rates. 

So we wanted to verify- is there any connection?

Can an increase in crime cause your car insurance rates to rise?

We talked to the Office of Commissioner of Insurance and Safety Fire, and insurance agent Christopher Walker from Macon’s Walker & Walker Insurance Agency.

“Zip codes are one of the factors for car insurance. So if you have a lot of break-ins in one particular area, that can come back and drive that up,” Walker said. 

He said there are a few ways insurance agencies look at crime. 

“The top two things you would look for on crime on the car insurance is the theft of the car and the break-ins,” Walker said. 

While high crime in your area can make a difference in how much you pay for coverage, Walker said it’s not the biggest factor that goes into consideration. 

“And they can make your insurance rise, but not as much cause they’re considered comprehensive claims. They don’t count as much as an at-fault accident would. But they do make a difference,” Walker said. 

We also reached out to the state insurance commissioner’s officer, who sent us this statement. 

“In short, yes. Crime rates, particularly theft and vandalism, play a direct role in influencing premium costs. Insurers assess the risk of claims payouts in areas with higher crime rates, and this risk assessment often results in higher premiums to offset potential losses. Comprehensive coverage is designed to protect against a range of risks, including theft and vandalism, which are particularly relevant in Georgia. Without this coverage, while your immediate premium might be lower, you potentially bear the full cost of non-collision-related damages. It’s important for policyholders to weigh the benefits against potential risks when deciding on their coverage option.”

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