The national average inflation rate increased by 0.2% in July, significantly slower than the 1.2% increase in motor vehicle insurance costs reported in the latest Consumer Price Index (CPI) summary from the U.S. Bureau of Labor Statistics.
Over the last year, the all items index has increased 2.9% nationwide, according to the report. Motor vehicle insurance costs have increased 18.6% across the country in the same time frame.
Although the national inflation rate saw a decrease of 0.2% in the previous month of June, motor vehicle insurance costs still increased that month by 0.9%.
Other indexes that increased in the month of July include shelter, household furnishings and operations, education, recreation, and personal care.
Georgia drivers are paying an average of $2,562 annually for full coverage car insurance, which is more than the national average, according to Bankrate.
A report from the U.S. Chamber of Commerce Institute for Legal Reform (ILR) found that Georgia’s rising number of nuclear verdicts, or verdicts larger than $10 million, is contributing to the state’s increasing insurance costs. Between 2013 and 2022, Georgia had the fourth most nuclear verdicts per capita out of any state in the country, according to the report. The state saw 64 nuclear verdicts during that time period.
“It’s time to address this problem before it gets worse,” said Oriana Senatore, ILR Senior Vice President of Research and Strategic Development. “Most people may not realize that nuclear verdicts affect almost everything, from the prices of common household products to availability and affordability of insurance.”
Gov. Brian Kemp said excessive lawsuits are driving up insurance costs in Georgia and called on the state legislature to prioritize tort reform to stem the volume of excessive litigation, WABE reported. He said that rising car insurance rates are one of the results of these excessive lawsuits. Georgia has some of the highest car insurance costs in the country.
“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,” Kemp said to the Georgia Chamber of Commerce last year.