Car insurance premiums in Georgia have surged by up to 30% for many drivers, with no changes in coverage, as the state’s rising number of accidents, increased litigation, and higher repair costs have reportedly led to more claims and higher premiums, prompting urgent calls for tort reform.
“Every Georgian pays a yearly ‘tort tax’ upwards of $2,000 to compensate for the rampant lawsuit abuse plaguing our state. CALA urges lawmakers to implement reform that will regulate the practice of greedy trial lawyers who abuse the system,” Citizens Against Lawsuit Abuse - Georgia said on Facebook.
In 2023, Georgia was named a Judicial Hellhole® by the American Tort Reform Association (ATRA).
While less frequent, bodily injury claims are the most expensive due to rising medical care costs. ATRA’s distinction was partly due to Georgia’s “nuclear verdicts.”
One high-profile case saw the City of Milton hit with a $32.5 million verdict after a deadly crash was linked to a poorly placed ornamental planter. Such legal decisions, along with a series of rulings on premises liability, have fueled concerns that Georgia’s court system is driving up costs for all residents.
ATRA also highlights the state’s seatbelt gag rule, which prevents juries from considering whether vehicle occupants were wearing seatbelts during an accident. Critics say this rule inflates damages in cases where seatbelt use could have reduced injury, further increasing insurance claims.
Another contributing factor is the growing role of third-party litigation financing in Georgia. These "cash-for-lawsuit" companies provide high-interest loans to plaintiffs, taking a significant share of any settlement. Critics argue these companies encourage frivolous lawsuits, exacerbating an already litigious environment.
Local business leaders are sounding the alarm over the rising cost of insurance. In a recent survey presented at the Brunswick-Golden Isles Chamber of Commerce, more than 95% of respondents reported significant increases in insurance premiums, with many fearing even higher costs ahead.
Eighty-five percent of those surveyed supported civil justice reform, concerned that without action, Georgia’s legal environment will drive up costs and harm the state’s reputation as a pro-business destination.