Georgia House passes Bill 477 to limit car insurance rate increases to once yearly

Georgia lawmakers are taking significant steps to protect consumers from frequent increases in private passenger motor vehicle insurance rates with the introduction of House Bill 477. Proposed by Representatives Bazemore, Gilliard, Crawford, Bennett, Kendrick, and others, the bill aims to limit insurers from raising rates more than once a calendar year.

The primary purpose of House Bill 477 is to amend existing regulations under Chapter 9 of Title 33 of the Official Code of Georgia Annotated, which governs insurance rates and underwriting rules. By restricting the frequency of rate increases, the bill seeks to provide greater stability and predictability for Georgia drivers, who have faced rising insurance costs in recent years.

Key provisions of the bill include a clear definition of what constitutes an excessive rate increase, emphasizing that rates should not be deemed excessive unless they are unreasonably high and lack competition in the market. This change aims to enhance consumer protection and ensure that rate adjustments are justified and fair.

The introduction of House Bill 477 has sparked notable discussions among lawmakers and stakeholders. Supporters argue that the bill addresses a pressing issue for many Georgians struggling with the financial burden of rising insurance premiums. However, some insurance industry representatives have expressed concerns that limiting rate increases could impact their ability to manage risk and maintain financial stability.

The implications of this bill could be far-reaching. If passed, it may lead to more affordable insurance options for consumers, potentially reducing the number of uninsured drivers on the road. Conversely, insurers may need to adjust their business models to accommodate the new regulations, which could affect their profitability and service offerings.

As the legislative process unfolds, House Bill 477 will be closely monitored by both consumer advocacy groups and the insurance industry. The outcome of this bill could set a precedent for how insurance rates are regulated in Georgia, influencing future legislation and consumer protections in the state.