Insurance Industry: We Like Georgia’s 2009 Laws

The insurance industry is anticipating a profitable 2009 thanks to new Georgia laws taking effect January 1st.

Georgia’s insurance commissioner no longer has the power to control auto insurance rate increases. Commissioner John Oxedine fought that change, which took effect in October. He says auto insurance rates could spike by twenty five percent or more. The industry says the change will allow more competition. Most motorists renew their policies in January.

Also, this year motorists will have the option of choosing Uninsured motorist coverage. Insurance companies say UM, as it’s called, offers protections against hit and runs. Some consumer advocates say it’s a profitable product that offers little real world protection.

Georgia car theft capital

A new insurance industry survey says car thefts went down statewide in 2007 -- except in one Georgia city. The latest statistics from the National Insurance Crime Bureau say Columbus tops the state in per-capita auto theft.

The survey says that 1,757 vehicles were heisted in 2007, beating out Atlanta and Augusta, who scored second and third place, respectively.

Columbus car dealerships say thieves focus on vehicles over a decade old, because they're easier to hotwire, and offer a fast, no-questions-asked junkyard sale.

As well, anti-theft gear and on-board GPS tracking systems on newer vehicles, make them a tougher target for thieves.

Measure could lead to car insurance rate hike

A House committee approved a measure yesterday that could lead to a spike in car insurance rates.

Currently, auto insurance companies have to provide evidence and get approval from the commissioner’s office before they raise rates beyond the state’s minimum.

But if the House votes in favor of the measure, auto insurance rates could take effect immediately without prior approval.

The insurance commissioner says that would make Georgia drivers vulnerable to injudicious rate hikes—companies could base rates on whatever they choose from credit scores to addresses.