Auto insurance premiums for drivers in Georgia have been on the rise, averaging $2,610 per annum. This makes Georgia the fourth most expensive state in the U.S. for auto insurance. Governor Brian Kemp attributes this partly to trial lawyers and the high number of "frivolous" lawsuits filed in Georgia.
According to a report by Bankrate, a consumer financial services company, drivers across the nation pay an average of $2,543 for full coverage auto insurance. This represents an increase of 26% from last year. In Georgia, drivers are paying an average of $2,610 for car insurance, or 3.58% of the average income. Only three states in the country have drivers spending a higher percentage of their income on car insurance than those in Georgia.
As reported by AP News, Gov. Kemp stated in August that excessive lawsuits and massive verdicts are driving up insurance costs. "The laws on our books make it too easy to bring frivolous lawsuits against Georgia business owners which drive up the price of insurance and stop new, good-paying jobs from ever coming to communities that need them the most," said Kemp during his address to the Georgia Chamber of Commerce. He also pointed out that these lawsuits place an "unacceptable" burden on industries such as real estate and trucking. Consumer advocates also note that lawsuit costs are often distributed among all insurance carriers, leading to increased costs and contributing to inflation.
According to AP News, while the Georgia Chamber of Commerce has advocated for lawsuit reform, its initiatives have failed in the state legislature over previous years. In 2005, lawmakers in Georgia succeeded in passing tort reform measures capping noneconomic damages; however, these caps were overturned by the state's Supreme Court in 2010.
Bankrate offers resources like comparison tools to help consumers make informed financial decisions, as stated on their website. More than 100 million people utilize Bankrate's services annually. The company, founded in 1976 as the Bank Rate Monitor, continues to provide these services.