The price for motor vehicle insurance across the country continues to rise at a higher than average rate, as compared to national inflation rates.
That's according to the latest Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics.
Motor vehicle insurance costs increased by 0.6 percent throughout the month of August, compared to the national average inflation increase of 0.2 percent.
Similarly, car insurance costs have risen 16.5 percent over the last 12 months, while the average inflation rate increased by 2.5 percent over the same time period.
A report from the Insurance Information Institute (III) found that one factor driving up Georgia’s car insurance costs is rising “social inflation,” or increased costs related to insurance claims. Social inflation is particularly affecting liability lines pertaining to personal and commercial auto insurance due to high litigation costs. “Simply put, skyrocketing legal costs play a key role in social inflation,” the report said. “These costs accumulate from the increasing number of lawsuit filings, extended litigation, and outsized jury awards.”
In August 2023, 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. 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 month, Kemp kicked off a "listening tour" with the intention of hearing from business leaders and stakeholders across the state about how civil litigation policies are impacting Georgia's business climate, according to a press release. Kemp said the feedback gathered during the listening tour will help shape policy proposals during the next legislative session.