Georgia residents are facing sharp increases in auto insurance rates, and experts say the state's growing mass tort litigation crisis is a key factor driving up costs.
Auto insurance rates in Georgia have surged by 26% over the past year, with the average cost of full coverage now reaching $2,610—higher than the national average of $2,543.
Kenneth Duffey, office manager at Cochran Insurance & Realty, Inc., believes the solution lies in reforming the state's litigation system.
“[Y]ou need to address making changes in Tort Reform,” Duffey said on X. “Insurance rates in the state are out of control. Rates have increased significantly over the last five years. Added inflation [is] making life difficult for Georgia families.”
According to the Independent Insurance Agents of Georgia (IIAG), mass tort litigation and strategies like naming insurers as defendants in lawsuits are causing significant disruptions in the state’s insurance market.
Over the past five years, Georgia’s auto liability lines have been unprofitable for most insurance companies, leading many to either pull out of the market or impose stricter underwriting guidelines. The result is fewer choices for consumers and escalating costs, with major providers like Nationwide tightening operations and imposing longer approval periods for new policies.
However, the push for tort reform faces opposition from some lawmakers, particularly in the Georgia State Senate.
Rahul Bali, Georgia Politics reporter for WABE News, reported that newly appointed Senate Minority Leader Harold Jones has made it clear he will oppose any attempts at what he considers "unnecessary tort reform."
Gov. Brian Kemp has also weighed in on the issue, hosting a series of roundtable discussions to address the economic challenges posed by Georgia's litigation climate. The final roundtable, held at Waffle House’s headquarters in Atlanta, included representatives from 12 major Georgia businesses.
“On behalf of Waffle House, I’d like to thank Governor Kemp, Lt. Governor Jones, Speaker Burns, Commissioner King and the members of the General Assembly for their commitment to addressing the current civil litigation crisis in Georgia,” said Joe Rogers III, CEO of Waffle House. "We look forward to working together on common sense reforms that will restore balance and level the playing field for all Georgians."
The discussion focused on how the current legal environment is driving up operating costs for companies and increasing insurance premiums for consumers.
Kemp reiterated his commitment to addressing the economic impact of Georgia’s litigation system, emphasizing that reforms are necessary to reduce costs and maintain the state’s pro-business environment.
“The unfortunate reality is our current litigation climate has led to increased costs for consumers and a higher barrier to entry for those who want to create jobs in our state,” Kemp said in a press release. “As we prepare to address this issue, these listening sessions have allowed us to hear from a diverse group of stakeholders who have shared thoughtful input that will inform our next steps.”
Kemp’s team is preparing for legislative action in 2025, aiming to balance the court system while protecting Georgia's economic well-being.