Georgia lawmakers vote to increase fines for insurance companies
Georgia lawmakers on Thursday voted to increase fines on insurance companies while also cracking down on uninsured drivers as part of a sweeping proposal aimed at reining in soaring rates for consumers.
House Bill 1344 would increase 40 fines for insurance companies for breaking state law. It would also close a loophole that exists for people without insurance who are driving a vehicle that is covered by someone else’s policy.
“You shouldn’t have honest people subsidizing folks who take the wheel without insurance,” said state Rep. Matt Reeves, R-Duluth.
The bill comes a year after state lawmakers narrowly passed Gov. Brian Kemp’s civil litigation legislation that aimed to contain insurance rates impacted by what critics say was a glut of frivolous lawsuits.
House Speaker Jon Burns created a special study committee to review the state’s insurance market. Overseen by Reeves, the committee examined the insurance industry’s system for setting rates and processing claims over several meetings throughout the state. The Republican-dominated committee also reviewed the industry’s profit margins and compliance with state laws.
House Bill 1344, which passed the House by a vote of 166-3 on Thursday, was the result of the committee’s work.
The bill, which now moves to the Georgia Senate for consideration, would also increase fines for insurance fraud. An example of insurance fraud is making a claim for insurance benefits by staging a collision.
Part of the reason for the fine increases is to make sure the law is having an impact and changing behavior. With many insurers making million- and billion-dollar profits, the fines were not large enough to be felt, lawmakers and advocates said during hearings.
Increases for individuals would be meant to have the same effect.
The bill would also speed up the amount of time insurers have to acknowledge catastrophic natural events, like ice storms, floods and tornadoes, and provide payment relief to affected people.
After Hurricane Helene devastated Georgia communities in 2024, many had to wait months before they could rebuild their homes and lives — although much of the delay came from the federal government.
“Hurricane Helene was the biggest insurance event we had in Georgia,” Reeves said. “We want to make sure when the next storm comes that Georgians are protected.”
About the Author
Michelle Baruchman covers the Georgia House of Representatives and statewide issues. She is a politics news and enterprise reporter covering statewide political stories.
