ATLANTA – Have your car insurance costs gone up recently? If so, you’re not alone – and it’s probably not your fault.

We recently asked our Facebook followers if they had noticed an increase in their car insurance premiums, and nearly 2,000 people responded with a resounding “yes.” For the vast majority of these individuals, nothing had changed – they hadn’t bought a new car, been in an accident, gotten a ticket, added anyone to their policy, or moved. Yet FOX 5 viewers reported that their premiums had increased by 10 to 30%, and in some cases even more.

With so many people affected by these unexpected increases, we decided to take a closer look at what’s happening in car insurance and see if we can find some answers.

Does it matter where you live?

Car insurance is more expensive in Atlanta than in rural areas of Georgia. This difference is due to several factors, such as population density, crime rate, and number of accidents/collisions.

In contrast, rates in rural areas tend to be lower due to fewer accidents, lower crime rates, and less traffic congestion. However, individual rates may vary depending on other factors such as driving history, vehicle type, and specific location.

Cost comparison

Here’s a look at the total costs (insurance/fuel/maintenance) for drivers in Atlanta with a 3-mile commute and for drivers outside of Atlanta with a 30-mile commute because they work in Atlanta. Note: These costs do not include weekly mileage other than commuting. Additionally, costs for things like rent and utilities can vary significantly depending on where the driver lives. These figures are rough averages that can be found online.

Assumptions:

1. Fuel efficiency: The Toyota Camry has an average fuel consumption of 28 miles per gallon (MPG) under combined driving conditions.
2. Gas price: The average cost of gas is expected to be $3.50 per gallon.
3. Maintenance costs: The average maintenance costs, including routine maintenance such as oil changes, tires, etc., are estimated at $0.09 per mile.
4. Working week: The driver works 5 days per week.
5. Annual basis: The calculations are carried out for 52 weeks in one year.

Commuting distances:

• Short commute: 3 miles one way, so 6 miles there and back.
• Long commute: 30 miles one way, so 60 miles round trip.

Annual miles driven:

Short commute:

• Daily commute: 6 miles (round trip).
• Weekly commute: 6 miles/day × 5 days/week = 30 miles
• Annual commute: 30 miles/week × 52 weeks/year = 1,560 miles/year

Long commute:

• Daily commute: 60 miles (round trip).
• Weekly commute: 60 miles/day × 5 days/week = 300 miles/week
• Annual commute: 300 miles/week × 52 weeks/year = 15,600 miles/year

Gas cost calculation:

Petrol costs for short commutes:

• Annual gallon consumption: 1,560 miles at 28 MPG = 55.71 gallons
• Annual gasoline cost: 55.71 gallons × $3.50/gallon ≈ $194.99

Gasoline costs for long commutes:

• Annual gallon consumption: 15,600 miles at 28 MPG = 557.14 gallons
• Annual gasoline cost: 557.14 gallons × $3.50/gallon = $1,950.00

Calculating maintenance costs:

Short commute times Maintenance costs:

• Annual maintenance cost: 1,560 miles × $0.09/mile = $140.40

Maintenance costs for long commutes:

• Annual maintenance cost: 15,600 miles × $0.09/mile = $1,404.00

Total costs per year:

Total costs for short commutes:

• Gasoline: $194.99
• Maintenance: $140.40
• In total: $194.99 + $140.40 = $335.40

Total costs for long commutes:

• Gasoline: $1,950.00
• Maintenance: $1,404.00
• In total: $1,950.00 + $1,404.00 = $3,354.00

Cost difference:

• Difference: $3,354.00 − $335.40 = $3,018.60

Conclusion

This shows that the driver with the longer commute pays $3,018.60 more annually for gas and vehicle maintenance than the driver with the shorter commute.

Living in Atlanta vs. Living Outside the Perimeter

So, considering all of these things, should you move? Would it save you money overall? With these factors in mind, let’s compare the cost of living for a single woman in her 40s living in a rental apartment in Atlanta to a single woman in her 40s living in a rental apartment in Acworth.

1. Rent:

• Atlanta:Average rent for a 1-bedroom apartment: $1,800/month.
• Average rent for a 1-bedroom apartment: $1,800/month.
• Acworth:Average rent for a 1-bedroom apartment: $1,400/month.
• Average rent for a 1-bedroom apartment: $1,400/month.

2. Additional costs (electricity, heating, cooling, water, garbage):

• Atlanta:Average utility costs: $160/month.
• Average utility costs: $160/month.
• Acworth:Average utility costs: $150/month.
• Average utility costs: $150/month.

3. Food:

• Atlanta:Food for one person: $350/month.
• Food for one person: $350/month.
• Acworth:Food for one person: $320/month.
• Food for one person: $320/month.

4. Commuting costs:

Atlanta residents (5 km to work):

• distance: 3 miles one way, 6 miles round trip.
• Annual commuting kilometers: 6 miles/day × 5 days/week × 52 weeks/year = 1,560 miles
• Annual gas costs: 1,560 miles at 28 MPG × $3.50/gallon ≈ $195
• Monthly gas costs: $195/year ÷12 ≈ $16.25/month

Acworth residents (30 mile commute to Atlanta):

• distance: 30 miles one way, 60 miles round trip.
• Annual commuting kilometers: 60 miles/day × 5 days/week × 52 weeks/year = 15,600 miles
• Annual gas costs: 15,600 miles at 28 MPG × $3.50/gallon = $1,950
• Monthly gas costs: $1,950/year ÷12 ≈ $162.50/month

5. Car insurance:

• Atlanta:Average car insurance: $238/month.
• Average car insurance: $238/month.
• Acworth:Average car insurance: $207/month.
• Average car insurance: $207/month.

6. Tenant insurance:

• Atlanta:Average renters insurance: $15/month.
• Average renters insurance: $15/month.
• Acworth:Average renters insurance: $12/month.
• Average renters insurance: $12/month.

Total monthly costs:

Atlanta residents:

1. Rent: 1,800 US dollars
2. Utilities: 160$
3. Eat: $350
4. Commuting (petrol): $16.25
5. Car insurance: $238
6. Tenant insurance: 15$
7. In total: $2,579.25/month

Acworth residents (including commuters to Atlanta):

1. Rent: 1,400 US dollars
2. Utilities: 150$
3. Eat: $320
4. Commuting (petrol): $162.50
5. Car insurance: 207 $
6. Tenant insurance: 12 $
7. In total: $2,251.50/month

Summary:

• Atlanta residents: $2,579.25/month
• Residents of Acworth: $2,251.50/month

Difference: Living in Acworth and commuting to Atlanta is approximately $327.75/month cheaper than living directly in Atlanta. This calculation takes into account the costs of rent, utilities, groceries, commuting, car insurance and renters insurance for both locations.

Even with the added commuting costs for Acworth residents, it is a cheaper option overall due to lower rent, utilities and insurance.

Or consider an area like Tucker, which is partly inside and partly outside the perimeter. Here’s the breakdown of the cost of living in Tucker:

Tucker residents (including commutes to Atlanta):

1. Rent: 1,500 US dollars
2. Utilities: 150$
3. Eat: 330$
4. Commuting (petrol): $81.25
5. Car insurance: $250
6. Tenant insurance: $13
7. In total: $2,324.25/month

Summary:

• Atlanta residents: $2,561.25/month
• Residents of Tucker: $2,324.25/month

Difference: Living in Tucker and commuting to Atlanta is approximately $237/month cheaper than living in Atlanta.

What is the average cost of car insurance for Atlanta residents?

The average annual cost of fully comprehensive car insurance for Atlanta residents was $2,688 in 2023. It is projected to be $2,893 in 2024.

Does it matter where you live in Atlanta?

In Atlanta, the cost of car insurance varies significantly by zip code. In some areas, premiums are significantly higher due to factors such as crime rates, traffic congestion, and accident frequency. The most expensive zip codes for car insurance in Atlanta are 30310 (West End/Westview), 30354 (Hapeville), 30349 (College Park/Union City), and 30315 (South Atlanta/Pittsburgh). In these areas, average monthly premiums for comprehensive insurance can be as high as $259.

On the other hand, some zip code areas in Atlanta offer relatively lower car insurance costs. Areas such as 30318 (Northwest Atlanta/Blandtown/Underwood Hills), 30312 (Grant Park/Summerhill), and 30324 (Lindbergh/Morningside) are known for their cheaper insurance premiums. These neighborhoods generally have less traffic, fewer accidents, and lower crime rates, which reduces risk for insurers and consequently lowers insurance costs for residents.

Car insurance costs and basic services costs in cities near Atlanta

• Alpharetta: $2,467/$23,400
• Decatur: $3,215/$21,000
• Douglasville: $2,789/$19,800
• Dunwoody: $2,280/$22,200
• Fayetteville: $2,644/$19,800
• Fairburn: $3,128/$18,600
• Johns Creek: $2,240 per year/$22,200
• Kennesaw: $2,497 per year/$19,800
• Lawrenceville: $2,725/$19,800
• Lithonia: $3,389 (most expensive city in the state)/$17,400
• Marietta: $2,671 per year/$19,800
• Morrow: $3,160/$17,400
• Peachtree City: $2,370/$19,800
• Roswell: $2,515 per year/$21,000
• Sandy Springs: $2,260 per year/$22,200
• Smyrna: $2,670/$21.00
• Stockbridge: $3,014/$17,400
• Woodstock: $2,471/$19,900

Car insurance costs and basic costs in other major cities in Georgia

• Athens: $2,243/$16,200
• Augusta: $2,297/$13,800
• Columbus: $2,243/$15,000
• Mâcon (city): $2,524/$13,800
• savannah: $2,521/$18,600

Note: The figures for basic costs (rent/utilities/food) are conservative estimates. They are based on 1 person in a 1-bedroom apartment. Sources were Zillow, Numbeo And Best Places.

Sources