Georgia’s Auto Insurance Costs Surge, Now Among the Least Affordable in the U.S.

Georgia has seen a sharp decline in auto insurance affordability over the past decade, placing it among the least affordable states in the U.S., according to a new report by the Insurance Research Council (IRC). In 2022, personal auto insurance expenses consumed 2.0 percent of the median household income in Georgia, compared to 1.5 percent nationally, ranking the state 47th in affordability. Key factors contributing to the rising costs include economic inflation, high vehicle replacement costs, and an increase in claim litigation.

The study also highlights the growing concern of uninsured and underinsured motorists, whose presence exacerbates the affordability issue. Georgia’s underinsured motorist rate is now the third-highest in the country.

The report notes that tort reform in neighboring states may be pushing legal firms to seek opportunities in Georgia, leading to a surge in attorney advertising and litigation in auto insurance claims.