Georgia Auto Crash Rate Twice the National Average as Insurance Costs Spike

Georgia is facing a collision crisis. With auto wrecks occurring at double the national average, insurance claims adjusters in the state are navigating a volatile environment of rising repair costs, increasing fraud, and mounting consumer frustration over claim denials. Testimony before a Georgia House special committee laid out the pressure points: aging vehicles, advanced vehicle technology, aggressive driving behavior, and a surge in questionable claims.

Robert Passmore of the American Property Casualty Insurance Association told lawmakers that while other insurance sectors show strong gains, auto insurers are operating in the red, citing losses dating back to 2021. He attributes this to increased claim severity, not just frequency, with costly repairs now routine due to sensor-laden vehicle systems. Adjusters are caught between higher loss ratios and mounting scrutiny over whether repairs follow manufacturer guidelines—a compliance standard that can escalate claim disputes.

Collision repair shop owners like Jason Babb argue that insurers frequently underpay, especially when repairs involve mandated scans, calibrations, or OEM parts. He’s pushing legislation to mandate reimbursement when shops follow manufacturer standards, asserting it would protect consumers and ethical businesses. But insurers warn such mandates could further raise premiums, claiming OEM procedures may favor automakers financially.

Adding complexity, Georgia ranks third in the U.S. for questionable claims, with over 10,000 fraud investigations annually, creating additional strain for adjusters tasked with verifying increasingly complex losses. With the smartphone era linked to rising accident rates and legislative momentum building, Georgia adjusters must balance claim integrity with regulatory shifts and heightened claimant expectations.

This evolving climate underscores the importance of consistent repair documentation, fraud detection training, and close monitoring of legislative developments for those processing auto claims in Georgia.