Why Are Home & Auto Insurance Rates Increasing?
Many Georgia and Tennessee families have noticed rising home and auto insurance premiums over the past two years. If you’re wondering why your costs are going up and what you can do about it, you’re not alone. Here’s what’s driving these increases and how to keep your insurance affordable in 2025.
Top Reasons for Rising Insurance Premiums
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Severe Weather & Increased Claims
More hurricanes, floods, and wildfires have led to higher claims, forcing insurers to adjust rates. -
Rising Home & Auto Repair Costs
Inflation has driven up the price of construction materials, labor, and car parts, making claims more expensive. -
Legal Costs & the Need for Tort Reform in Georgia
Georgia’s high litigation expenses are contributing to rising insurance costs. Governor Kemp has made tort reform a legislative priority to help control premium hikes. -
Credit & Payment History Impact Rates
Insurers are placing greater emphasis on credit scores and payment history when determining policy pricing. -
Home Maintenance & “Pride of Ownership” Matter
Homeowners who consistently maintain their properties may receive better rates as insurers prioritize well-kept homes with lower risk. -
Post-COVID Driving Habits & Increased Auto Losses
Since the pandemic, driving behaviors have shifted, leading to higher accident rates and increased claims. More aggressive driving, distracted driving, and speeding have contributed to rising auto insurance costs.
What to Expect for Home & Auto Insurance in 2025
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Premiums May Continue to Rise but Could Stabilize – If inflation slows and tort reform passes, rate increases could ease.
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Stricter Underwriting & Higher Deductibles – Insurers are tightening approval criteria and shifting more costs to policyholders.
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Expanded Discounts for Safe Homes & Good Credit – Maintaining your home and improving your credit score can help you save.
How to Lower Your Home & Auto Insurance Costs
✅ Maintain Your Home – Regular roof inspections, security upgrades, and storm-resistant features can qualify for discounts.
✅ Improve Credit & Payment History – Pay bills on time to keep your rates lower.
✅ Minimize Claims & Losses – Avoid filing small claims that could raise your rates over time. Keep your home well-maintained and practice safe driving.
✅ Avoid Ticket Violations & Maintain a Clean Driving Record – Speeding tickets and other infractions can cause significant increases in auto insurance costs.
✅ Raise Your Deductible – A higher deductible can lower your monthly premium.
✅ Use Safe Driving & Telematics Programs – Some auto insurers reward safe driving habits with discounts.
✅ Shop Around & Work with an Independent Agent – Compare policies to find the best coverage at the most affordable price.
Controlling Your Insurance Costs in 2025
While insurance costs are rising due to inflation, extreme weather, and legal expenses, families can take steps to manage their premiums. Keeping up with home maintenance, improving credit, and supporting tort reform efforts in Georgia can help control future costs.
For guidance on affordable home and auto insurance in Georgia and Tennessee, contact LG Insurance Group. We can compare multiple providers and find the best coverage for your needs.
