Georgia Commissioner Touts More Auto Rate Reductions by Major Insurers
Georgia Insurance Commissioner John King announced more auto insurance rate reductions for motorists in the state—the second announcement in as many months. King credited tort-reform laws and stepped-up 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 said in a recent statement.
The commissioner’s office recently approved an average 5.1% rate decrease 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. King said the rate changes would save policyholders an estimated $190 per vehicle, annually.
Those decreases followed the November approval of a 3% average decrease in auto insurance for State Farm Insurance in Georgia. Insurers and regulators have announced similar decreases in Florida and other states.
In Florida, Progressive Insurance this fall was required to provide refunds or premium credits to auto policies after reporting profits in excess of what is allowed by state law. The top five auto writers in the state also filed for rate changes that will average about 6.5% in reductions.
Florida officials and insurance executives have credited 2022 and 2023 state legislation that limited what they called excessive property claims litigation, which has significantly reduced insurers’ loss adjustment expenses. In Georgia, lawmakers early this year approved similar, broad tort-reform measures that may already be having an impact on insurers’ costs.
Related: Progressive’s $950M in Florida Regurgitation to Mostly Be Credits in Renewals