Georgia drivers are facing a sharp increase in auto insurance premiums, with the state now ranking among the top five in the nation for the highest rates.
Experts say the surge in costs is largely due to a combination of mass tort litigation and a legal environment that favors plaintiffs, leading to more frequent and larger verdicts that insurance companies must cover.
Critics argue that tort reform—legislative changes designed to reduce lawsuit abuse—is necessary to protect consumers from further price hikes and limited coverage options.
Kevin Buffington, a State Farm Insurance agent from Columbus, Georgia, expressed frustration over the rising rates on social media, noting that Georgia’s premiums are now just behind California’s.
“Auto insurance in Ga is just behind Cal in premiums believe it or not and top 5 in country. Need tort reform in a bad way!!!” Kevin Buffington, State Farm Insurance Agent from Columbus, Georgia, said on X.
According to a report from the Independent Insurance Agents of Georgia (IIAG), mass tort litigation in the state is causing insurers to pull out or limit their business in Georgia, further driving up prices for consumers.
The IIAG claims that over the past five years, insurers have suffered significant losses, especially in auto liability, due to costly litigation and court rulings, pushing Georgia to the top ranks for policy cancellations.
However, R Street reports that efforts to curb the state’s lawsuit culture through tort reform have faced significant challenges.
While Gov. Brian Kemp has voiced support for comprehensive changes, the political landscape has made it difficult to pass broad reforms.
The American Tort Reform Association (ATRA) has ranked Georgia as the number one "Judicial Hellhole" in the country for a second consecutive year, citing massive $1.7 billion punitive damages awards and the state's plaintiff-friendly courts.
ATRA and other critics argue that these "nuclear verdicts"—which can exceed $1 billion—are contributing to a legal environment that drives up costs for businesses and consumers alike.
As of 2023, Georgia has seen at least 39 nuclear verdicts since 2018, and legal experts point to practices like "anchoring," where plaintiffs’ attorneys suggest inflated damage amounts to jurors, as key contributors to the state’s runaway lawsuit culture.
In addition, Georgia's outdated seatbelt gag rule and the growing prevalence of third-party litigation financing—which allows unregulated, high-interest loans to plaintiffs—are seen as exacerbating the problem.
Despite these challenges, Governor Kemp has made civil justice reform a top priority for his administration in 2024, though many reform advocates worry that meaningful change may still be years away.