3 Companies That Are Dropping Car Insurance Rates In Georgia

Many drivers are feeling the pain of having their auto insurance costs rise at a staggering rate. ValuePenguin's State of Auto Insurance in 2025 report shows that the average increase in rates was 12% in 2023 and 16.5% in 2024, while a late 2025 Lending Tree survey found that 58% of Americans who buy auto insurance say the cost is a challenge for their financial situations.

However, it appears costs are starting to level off, as insurance companies are beginning to compete for business by reducing rates for customers who are willing to shop around. In the state of Georgia, consumers are seeing evidence of this through announcements from Georgia Insurance and Safety Fire Commissioner John F. King. He recently announced that Safeco Insurance Company of Illinois, Safeco Insurance Company of Indiana, and Liberty Mutual Personal Insurance Company are each dropping their rates by roughly 5% to 6% for Georgia drivers heading into 2026. Weeks earlier, State Farm announced that it too would reduce its rates in Georgia by 3% going forward.

While car insurance rates have been rising fastest in California, Illinois, Minnesota, Missouri, and North Carolina, Georgia has recently passed legislation aimed at trying to reduce costs. Georgia's General Assembly passed House Bill 221 in 2023, allowing the state to review rate filings in an effort to keep them from increasing at unfair percentages. Before the bill, companies could enact rate increases in Georgia without approval from state regulators.

According to King's office, Liberty Mutual Personal Insurance Company will reduce its auto rates by 5.7% for the state's drivers in 2026. For those looking for ways to save on car insurance, this reduction is welcome news. Liberty Mutual has been offering insurance for more than 110 years. During its formation in 1912, its original name was Massachusetts Employees Insurance Association (MEIA). It became Liberty Mutual in 1918 when it began offering auto policies. The company offers car insurance in all 50 states and Washington, D.C.

For Georgia drivers, Liberty Mutual offers the ability to save with several discounts that go beyond the rate reduction. People who are current or retired members of the U.S. military are eligible for a price break, while policy holders who do not have a history of making claims or traffic violations may also receive discounts. Another discount option is available through use of Liberty Mutual's RightTrack program, which allows drivers to use a smartphone app to track their driving habits such as braking, acceleration, and the points in the day they're driving most frequently. After a 90-day period of using the app, Liberty Mutual gives the driver a RightTrack score that determines what kind of discount is available. Drivers who operate the vehicle safely would receive a discount of up to 30%, though unsafe drivers could see their rates increase instead.

Though the reductions won't be quite as significant as Liberty Mutual's, two separately operating Safeco Insurance entities are also dropping their auto coverage rates in Georgia as well. Safeco Insurance Company of Illinois is reducing its prices by 5.1%, while Safeco Insurance Company of Indiana is offering a 4.9% reduction. Safeco companies sell policies in Georgia and other states through independent agents, who can explain any specific discounts that are available to drivers in Georgia.

Safeco has dozens of underwriting companies, and each is authorized to operate in different areas throughout the country. Both Safeco of Illinois and Safeco of Indiana hold licenses to offer policies in Georgia, as well as dozens of other states. The main Safeco Insurance Company began selling insurance in 1923 and has been part of Liberty Mutual Insurance since 2008.

Safeco Insurance Company of Illinois formed in 1980 and has its corporate home in Warrenville, Illinois. Safeco Insurance Company of Indiana formed in 1985, but it lists Liberty Mutual's headquarters' address in Boston as its mailing address. Each company has its own National Association of Insurance Commissioner (NAIC) number that customers can use to obtain information about the company's track record, including complaints from customers. 

Though it came as a separate announcement, State Farm also revealed a rate reduction on its Georgia auto policies ahead of 2026. In November 2025, State Farm announced a 3% auto insurance rate reduction for Georgia drivers. When coupled with rate decreases implemented earlier in the year, State Farm's total discount over a 12-month period surpassed 10%. Speaking with 11Alive about the change, King seemed optimistic that more like it will come. He reflected, "This is a leap of faith for insurance companies. There's not a whole lot of data yet, but they realize Georgia is heading in the right direction."

State Farm offers several discounts for Georgia drivers beyond these recent reductions. For example, drivers who remain accident-free, violation-free, and complete an approved defensive driving course are eligible to receive an auto insurance discount. Additional discounts are available for enrolling in State Farm's Drive Safe & Save program, which involves using a smartphone app to collect driving data aimed at determining whether drivers operate their vehicles safely.

Insurance Business lists State Farm as the leading auto insurance company in Georgia with a market share of 23.37%. The company was founded in Illinois 1922, and writes new auto insurance policies in every state besides Rhode Island and Massachusetts as of 2026.