Agent and witnesses flag uninsured/undisclosed drivers and short‑term policies as growing coverage gaps

Independent agents and insurance practitioners told the committee that uncovered and undisclosed drivers, short‑term or "spot" auto policies, and affordability pressures are increasing the number of drivers on Georgia roads without effective coverage — a trend that can shift costs onto insured motorists and complicate claims handling.

What witnesses said

- David Pattison, an independent insurance broker, said insurers are increasingly unwilling to write certain Georgia risk lines, reducing options and driving up consumer premiums; he said tort‑reform steps are beginning to attract carriers back but market rebuilding takes years. - Ashley Duvall, a former captive agent who continues to hold a license, explained the mechanics of undisclosed drivers: carriers that audit DMV records sometimes notify policyholders when a driver appears associated with the household but not on the policy; the insured then has 30 days to clarify residency or add the driver. Duvall said many policyholders do not add drivers because of the added premium cost (teen drivers were specifically cited) or affordability constraints. - Duvall and others also flagged short‑term “spot” policies that customers buy briefly (for a week or a month) to secure a title or registration; witnesses said these products can undermine the state’s intent that drivers maintain ongoing liability coverage and can produce coverage gaps shortly after the short term ends.

Why it matters

Witnesses said uninsured and underinsured motorist exposures increase premiums for insured drivers, complicate recovery after collisions, and produce more litigation and administrative costs. The committee discussed legislation under consideration that would strengthen consequences for excluded drivers and require clearer disclosure to policyholders.

Committee context and next steps

Members asked for proposals that could reduce uninsured/undisclosed drivers and better detect fraudulent or transient coverage behavior. The committee requested follow‑up data on short‑term policy prevalence and audit procedures used by carriers and the Division of Motor Vehicles.

Ending

Witnesses urged combined approaches: better enforcement of mandatory coverage, statutory fixes for excluded drivers and consumer affordability measures such as targeted rate relief or structural reforms to reduce liability and UM costs.