Georgia Commissioner Highlights Increased Auto Rate Reductions from Leading Insurers

Georgia Insurance Commissioner John King has announced additional auto insurance rate reductions for motorists across the state, marking the second such announcement in just two months. King attributes these reductions to recent tort-reform laws and enhanced efforts to combat insurance fraud.

“As we continue the OCI mission to build a fair and affordable insurance marketplace, I am confident that we will see rates further decline across Georgia,” King stated in a recent announcement.

The commissioner’s office has approved an average rate decrease of 5.1% for Safeco Insurance Co. of Illinois, a 4.9% decrease for Safeco Insurance of Indiana, and a 5.7% average drop for Liberty Mutual Personal Insurance Co. These changes are expected to save policyholders approximately $190 per vehicle annually.

These recent decreases follow the November approval of a 3% average reduction in auto insurance rates for State Farm Insurance in Georgia. Similar rate reductions have also been announced in Florida and other states.

In Florida, Progressive Insurance was mandated this fall to provide refunds or premium credits to auto policyholders after reporting profits exceeding state law limits. Additionally, the top five auto insurers in Florida have filed for rate changes that average around 6.5% in reductions.

Florida officials and insurance executives attribute these positive changes to state legislation enacted in 2022 and 2023, which aimed to limit what they termed excessive property claims litigation. This legislation has significantly reduced insurers’ loss adjustment expenses. In Georgia, similar broad tort-reform measures were approved by lawmakers earlier this year, which may already be influencing insurers’ costs.

Related: Progressive’s $950M in Florida Regurgitation to Mostly Be Credits in Renewals

Topics
Carriers
Auto
Pricing Trends
Georgia

Georgia Insurance Commissioner John King has announced additional auto insurance rate reductions for motorists across the state, marking the second such announcement in just two months. King attributes these reductions to recent tort-reform laws and enhanced efforts to combat insurance fraud.

“As we continue the OCI mission to build a fair and affordable insurance marketplace, I am confident that we will see rates further decline across Georgia,” King stated in a recent announcement.

The commissioner’s office has approved an average rate decrease of 5.1% for Safeco Insurance Co. of Illinois, a 4.9% decrease for Safeco Insurance of Indiana, and a 5.7% average drop for Liberty Mutual Personal Insurance Co. These changes are expected to save policyholders approximately $190 per vehicle annually.

These recent decreases follow the November approval of a 3% average reduction in auto insurance rates for State Farm Insurance in Georgia. Similar rate reductions have also been announced in Florida and other states.

In Florida, Progressive Insurance was mandated this fall to provide refunds or premium credits to auto policyholders after reporting profits exceeding state law limits. Additionally, the top five auto insurers in Florida have filed for rate changes that average around 6.5% in reductions.

Florida officials and insurance executives attribute these positive changes to state legislation enacted in 2022 and 2023, which aimed to limit what they termed excessive property claims litigation. This legislation has significantly reduced insurers’ loss adjustment expenses. In Georgia, similar broad tort-reform measures were approved by lawmakers earlier this year, which may already be influencing insurers’ costs.

Related: Progressive’s $950M in Florida Regurgitation to Mostly Be Credits in Renewals

Topics
Carriers
Auto
Pricing Trends
Georgia