Cost of car insurance: Atlanta vs. everywhere else, it makes a difference

ATLANTA - Has your car insurance cost increased recently? If so, you are not alone—and it’s probably not your fault.

We recently asked our Facebook followers if they had noticed a rise 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, received a traffic ticket, added anyone to their policy, or moved. Yet, FOX 5 viewers reported that their rates had increased by 10% to 30%, and in some cases, even more.

With so many people experiencing these unexpected hikes, we decided to take a closer look at what’s happening with car insurance and see if we could uncover some answers.

READ ALL THE STORIES

• Cost of car insurance: Why has car insurance gone up so much in Georgia?
• Cost of car insurance: How do I lower my car insurance costs?
• Cost of car insurance: What drivers can and can't control
• Cost of car insurance: Atlanta vs. everywhere else, it makes a difference

Does it matter where you live?

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

In contrast, rural areas typically have lower rates due to fewer accidents, lower crime rates, and reduced traffic congestion. However, individual rates can vary depending on other factors like driving history, vehicle type, and specific location.

Cost comparison

Here's a look at the total costs (insurance/gas/maintenance) for Atlanta drivers with a 3-mile commute and drivers outside of Atlanta but with a 30-mile commute because they work in Atlanta. Note: These costs do not include miles driven weekly for other things besides the work commute. Additionally, the cost for things like rent and utilities may vary quite a bit depending on where the driver resides. These numbers are rough averages found online. 

Assumptions:

1. Fuel Efficiency: The Toyota Camry has an average fuel efficiency of 28 miles per gallon (MPG) in combined driving conditions.
2. Gas Price: The average cost of gas is assumed to be $3.50 per gallon.
3. Maintenance Costs: The average maintenance cost, including routine services like oil changes, tires, etc., is estimated at $0.09 per mile.
4. Work Week: The driver works 5 days per week.
5. Yearly Basis: The calculations are done for 52 weeks in a year.

Commute Distances:

• Short Commute: 3 miles one way, so 6 miles round trip.
• 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 Costs Calculation:

Short Commute Gas Cost:

• Gallons used annually: 1,560 miles at 28 MPG=55.71 gallons
• Annual gas cost: 55.71 gallons×$3.50/gallon=$194.99

Long Commute Gas Cost:

• Gallons used annually: 15,600 miles at 28 MPG=557.14 gallons
• Annual gas cost: 557.14 gallons×$3.50/gallon=$1,950.00

Maintenance Costs Calculation:

Short Commute Maintenance Cost:

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

Long Commute Maintenance Cost:

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

Total Annual Costs:

Short Commute Total Cost:

• Gas: $194.99
• Maintenance: $140.40
• Total: $194.99+$140.40 = $335.40

Long Commute Total Cost:

• Gas: $1,950.00
• Maintenance: $1,404.00
• Total: $1,950.00+$1,404.00=$3,354.00

Difference in Costs:

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

Bottom Line

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

Living in Atlanta vs. living outside the Perimeter

So, considering all of the above, should you move? Would it save you money overall? Let's compare the cost of living for a single woman in her 40s living in a rented apartment in Atlanta versus a single woman in her 40s living in a rented apartment in Acworth, taking into account the specified factors.

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. Utilities (electricity, heating, cooling, water, garbage):

• Atlanta:Average utilities cost: $160/month.
• Average utilities cost: $160/month.
• Acworth:Average utilities cost: $150/month.
• Average utilities cost: $150/month.

3. Food:

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

4. Commute Costs:

Atlanta Resident (3-mile commute to work):

• Distance: 3 miles one way, 6 miles round trip.
• Annual Commute Miles: 6 miles/day×5 days/week×52 weeks/year=1,560 miles
• Annual Gas Cost: 1,560 miles at 28 MPG×$3.50/gallon=$195
• Monthly Gas Cost: $195/year÷12=$16.25/month

Acworth Resident (30-mile commute to Atlanta):

• Distance: 30 miles one way, 60 miles round trip.
• Annual Commute Miles: 60 miles/day×5 days/week×52 weeks/year=15,600 miles
• Annual Gas Cost: 15,600 miles at 28 MPG×$3.50/gallon=$1,950
• Monthly Gas Cost: $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. Renter’s Insurance:

• Atlanta:Average renter’s insurance: $15/month.
• Average renter’s insurance: $15/month.
• Acworth:Average renter’s insurance: $12/month.
• Average renter’s insurance: $12/month.

Total Monthly Costs:

Atlanta Resident:

1. Rent: $1,800
2. Utilities: $160
3. Food: $350
4. Commute (Gas): $16.25
5. Car Insurance: $238
6. Renter’s Insurance: $15
7. Total: $2,579.25/month

Acworth Resident (including commute to Atlanta):

1. Rent: $1,400
2. Utilities: $150
3. Food: $320
4. Commute (Gas): $162.50
5. Car Insurance: $207
6. Renter’s Insurance: $12
7. Total: $2,251.50/month

Summary:

• Atlanta Resident: $2,579.25/month
• Acworth Resident: $2,251.50/month

Difference: Living in Acworth and commuting to Atlanta is approximately $327.75/month less expensive than living directly in Atlanta. This calculation takes into account the costs of rent, utilities, food, commute, car insurance, and renter's insurance for both locations.

Even with the added commuting costs for the Acworth resident, the lower rent, utilities, and insurance make it a more affordable option overall.

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

Tucker Resident (including commute to Atlanta):

1. Rent: $1,500
2. Utilities: $150
3. Food: $330
4. Commute (Gas): $81.25
5. Car Insurance: $250
6. Renter’s Insurance: $13
7. Total: $2,324.25/month

Summary:

• Atlanta Resident: $2,561.25/month
• Tucker Resident: $2,324.25/month

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

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

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

Does it matter where you live in Atlanta?

In Atlanta, car insurance costs vary significantly depending on the ZIP code, with some areas experiencing much higher premiums due to factors like crime rates, traffic congestion, and accident frequency. The most expensive ZIP codes for car insurance in Atlanta include 30310 (West End/Westview), 30354 (Hapeville), 30349 (College Park/Union City), and 30315 (South Atlanta/Pittsburgh). In these areas, average monthly premiums for full coverage can reach as high as $259. 

On the other hand, some Atlanta ZIP codes offer relatively lower car insurance costs. Areas like 30318 (Northwest Atlanta/Blandtown/Underwood Hills), 30312 (Grant Park/Summerhill), and 30324 (Lindbergh/Morningside) are known for having more affordable premiums. These neighborhoods generally have lower traffic density, fewer accidents, and lower crime rates, which help reduce the risk for insurers and, consequently, lower the insurance costs for residents. 

Cost of car insurance & cost of basics 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 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/$21,000
• Stockbridge: $3,014/$17,400
• Woodstock: $2,471/$19,900

Cost of car insurance & cost of basics in other major Georgia cities

• Athens: $2,243/$16,200
• Augusta: $2,297/$13,800
• Columbus: $2,243/$15,000
• Macon: $2,524/$13,800
• Savannah: $2,521/$18,600

Note: The numbers for cost of basics (rent/utilities/food) are conservative estimates. They are based on 1 person in a 1 bedroom apartment. Sources were Zillow, Numbeo and BestPlaces. 

Sources

• Georgia Highway Safety
• Federal Highway Administration
• Bankrate
• National Association of Insurance Commissioners
• LexisNexis Risk Solutions
• AutoInsurance.com
• Insurance Information Institute
• Atlanta Police Department Weekly COBRA Report
• ConsumerAffairs.com
• FRED Economic Data
• Value Penguin

Thanks to John Emil D'Angelo, owner of InsurancePM.com for sharing his expertise.