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    As of late, Georgia drivers have continued to be shocked by the large increases in the auto insurance premiums they see.  While some drivers are familiar with the fact that there are changes going on in the auto insurance industry, most Georgians still may not know the reasons why these changes are taking place.  At Guardian Insurance we try to educate our customers on a daily basis, working diligently to keep them informed about their policies and the reasons why the rates are what they are.  But now we feel that we need to be a little more proactive in reaching those individuals that are still searching for answers. 

    The simplest answer to the question is that price increases in Georgia auto insurance rates are based on insurance companies' loss ratios.  A loss ratio, very simply, means "for every dollar that an insurance company takes in, exactly how much of that dollar is paid back out to cover its customers insurance claims."  In Georgia, the answer in the past two years for most companies has been "all of it." Below is a table listing the country's largest auto insurance companies and their corresponding losses in 2015 (Source: SNL Financial):

RANK        COMAPNY                                COMBINED LOSS RATIO
    
1.                State Farm                                            112%

2.                GEICO                                                    98%

3.                Allstate                                                   101%

4.                Progressive                                             94%

5.                USAA                                                     103%

6.                Farmers                                                  109%

7.                Liberty Mutual                                         104%

8.                Nationwide                                              110%

9.                American Family Ins.                               106%

10.              Travelers                                                   97%


As the table shows this is an industry wide epidemic.  In the past higher loss ratios were thought to be consistent with non-standard insurance (or higher risk) carriers but the information shows that these losses are consistent with standard companies as well, with State Farm and Nationwide's losses being the greatest.  The trend we are seeing isn't just a representation of some drivers but rather a reflection of ALL drivers in general.

    
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