MALVERN, PA — A recent report from the Insurance Information Institute (Triple-I) underscores the role of tort reform in tackling Georgia’s escalating insurance affordability crisis. The study, Trends and Insights: Georgia Insurance Affordability, sheds light on rising costs for consumers and businesses in the state, driven partly by legal system abuse.
Georgia has emerged as one of the least affordable states for personal auto insurance, ranking 47th nationwide in 2022, according to the Insurance Research Council (IRC). Over the past eight years, personal auto insurance costs in Georgia climbed by 5.6% annually—nearly double the U.S. average of 3.3%. This surge has propelled the average annual expenditure for personal auto insurance in Georgia to $1,347, approximately 20% higher than the national average. Simultaneously, Georgia’s median household income remains 9% below the U.S. average, exacerbating financial strain on residents.
The report also highlights broader concerns regarding home insurance affordability. Analysts predict that insurance rates will significantly impact the feasibility of homeownership for Georgia residents in the coming years.
Litigation costs have been a central factor in driving up premiums. Prolonged legal proceedings, exorbitant verdicts, and unnecessary lawsuits increase claims costs and reduce the predictability insurers need to set fair rates. Triple-I argues that reform measures, including the tort reform package proposed by Georgia Gov. Brian Kemp, could help curb these challenges.
“There must be more work done to curb legal system abuse in Georgia, as insurers are seeing significant increases in claims costs when billboard attorneys enter into the picture,” said Sean Kevelighan, CEO of Triple-I. “Understanding how these trends drive up costs and identifying policy levers for tort reform legislation can ultimately bring positive outcomes for Georgia’s economy and its consumers and business owners.”
If enacted, Gov. Kemp’s comprehensive tort reform package could stabilize insurance costs, making coverage more affordable for households and businesses alike. By reducing legal system inefficiencies, the reforms aim to foster a healthier, more predictable insurance market. These measures position Georgia to create a fairer playing field for policyholders and insurers, boosting economic stability and consumer confidence in the state’s insurance system.
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