Insurify, a virtual insurance agency, issued a report on August 11 which found that car insurance costs in Georgia are the tenth highest in the country, despite Georgia’s low overall cost of living.
According to the report, as of June, Georgia drivers were paying an average of $2,688 annually for full coverage car insurance, representing a 21% increase from June 2023. Insurify projected that car insurance costs will increase by a total of 24% in 2024, meaning Georgia drivers will be paying an average of $2,893 by the end of the year. Nationwide, car insurance costs also rose 24% last year.
Georgia’s overall cost of living is 10% lower than the national average, according to RentCafe. Housing in Georgia is 21% less expensive than the national average, and the cost of food is 4% lower than the national average.
Last year, Gov. Brian Kemp called for tort reform, stating that excessive lawsuits are driving up insurance costs in Georgia, WABE reported. He said that rising car insurance rates are one of the results of these excessive lawsuits. "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.
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. According to the report, between 2013 and 2022, Georgia had the fourth most nuclear verdicts per capita out of any state in the country. 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."
Insurify is a virtual insurance agency service licensed in all 50 states, according to its website. Through Insurify, consumers can compare insurance policies and receive personalized quotes.