Georgians and South Carolinians are certainly paying a pretty penny for gasoline these days.

But there's good news.

They're saving a whole bunch of money on their car insurance.

A new study from the National Association of Insurance Commissioners indicates that the Peach State is well below the national average when it comes to how much its residents pay on auto insurance premiums. Whereas the 2003 average - the latest figure available - is listed as $820.91 in the study, Georgians spent $758.96 that year, making it the 24th-ranked state.

South Carolina did even better, ranking 26th. On average those residents paid $744.49 in 2003, according to the study.

Dave Colmans, a spokesman for the Georgia Insurance Information Service, said the state's insurance rates consistently rank in the mid-20s, mainly because drivers have a large selection of insurance providers from which to choose. That allows them to shop around for the best deal.

"Georgia is still a very competitive state to insurers," he explained. "They're pricing as aggressively as they can while at the same time making sure that they're financially strong."

South Carolina's population is much smaller, translating to fewer accidents overall, which is one of the explanations for the state's low insurance costs, Mr. Colmans said.

The situation is quite the opposite in the most expensive states for motorists.

In New Jersey, No. 1 in the agency's poll, repair costs, accident rates, health care costs and litigation costs are high and going higher, plus the insurance industry is heavily regulated.

"There's a direct relationship with regulation and cost," Mr. Colmans said. "Oddly enough, you might think that more regulations would mean companies charge less, but the more regulations the higher their costs. Luckily we have a pretty good balance here."

Across the Southeast, Floridians pay the most for insurance, with the average expenditure in 2003 at more than $1,000.

How do insurance companies come up with their prices in the first place?

There are factors drivers can control, such as where they live, the type of car they own and their accident history, according to the Auto Insurance Center, a Web-based trade organization.

Then there are factors that can't so easily be changed, such as age, gender and marital status.

Reach Dena Levitz at (706) 823-3339 or dena.levitz@augustachronicle.com.