New Report Shows Georgia is Facing an “Insurance Affordability Crisis”
If homeowners insurance feels more expensive across Georgia, then you’re not imagining it.
According to a new report from the Insurance Information Institute, Georgia is experiencing an “insurance affordability crisis.”
As Tasha Williams of the Triple-I blog explains, insurance affordability in Georgia is dwindling because of frequent claims and higher costs for insurers.
Georgia has recently become one of the top 10 worst states in America for home and auto insurance affordability. In the latest rankings from the Insurance Information Institute, Georgia ranked 42nd for homeowners insurance affordability and 47th for auto insurance affordability.
Insurers blame higher risks, which lead to higher costs. They pass these higher costs to homeowners. If the average homeowner’s income doesn’t rise to match this risk, then affordability plummets.
All of these factors combine to create an “insurance affordability crisis.”
Factors Causing Georgia’s Insurance Affordability Crisis
Some blame increased litigation. Others blame severe weather. Some cite Georgia’s record-high rates of uninsured motorists. Others blame excessive development in flood-prone coastal areas.
Overall, multiple factors have caused home and auto insurance rates to rise across Georgia.
Here are some of the most influential factors:
- High Rates of Uninsured/Underinsured Motorists: According to the Insurance Information Institute, Georgia has more uninsured and underinsured motorists than nearly any other state, contributing to high auto insurance premiums. 18.1% of all drivers in Georgia are completely uninsured. Only five states (Kentucky – 18.7%, Michigan – 19.6%, Tennessee – 20.9%, Mississippi – 22.2%, and New Mexico – 24.9%) have a higher rate of uninsured motorists. Overall, Georgia has roughly twice the number of uninsured motorists as the national average, and insurers are often left covering losses when these uninsured motorists can’t pay.
- Severe Weather: Georgia regularly experiences severe weather, particularly in the coastal areas, which are some of the most vulnerable areas of the United States for climate-related risks. Homeowners in coastal Georgia have watched insurance rates climb 10% to 50% over the last few years. According to the National Centers for Environmental Information (part of NOAA), Georgia experienced 134 weather disaster events causing over $1 billion in damage between 1980 and 2025, including 68 severe storms, 27 tropical cyclones, 17 droughts, 12 winter storms, 4 floods, 3 freezes, and 3 wildfires.
- Increased Litigation Rates: Georgia has a higher-than-average litigation rate. According to the IRC, drivers in Georgia file roughly 300% more lawsuits than the average American driver. Lawsuits cost insurers a lot of money. One report found Georgians pay around $880 million in litigation costs each year – or around $1,415 per resident. Some even call it a “tort tax.” Much of this money goes towards lawyers at the expense of insurers, policyholders, and taxpayers.
- Increased Development in Risky Areas: One report blamed rising development in risky areas of Georgia. Home builders and developers are building thousands of homes in Forsyth, Cherokee, and Henry Counties, for example, that are more vulnerable to floods and storms.
- Below-Average Income: Georgia has lower personal income, on average, than the rest of the country. This lower-than-average income makes insurance affordability worse. Even if residents pay a similar rate for homeowners insurance as neighboring states, the lower-than-average income makes it harder to afford those rates.
- Rising Inflation: Inflation has hit historic highs in recent years. As inflation rises, insurers pay more for labor and materials, and they pass those costs onto homeowners. Approximately 30% of rising insurance premiums are linked to inflation.
Overall, inflation and rising climate risks have increased insurance premiums nationwide. However, Georgia also has several specific factors – including development in risky areas and high rates of uninsured drivers – that have pushed costs far beyond the national average.
The Average Homeowner in Georgia Pays 22% Higher Rates for Homeowners Insurance
According to Liberty Mutual, the average homeowner in Georgia pays around $2,345 per year for homeowners insurance, or 22% more than the national average.
Rates are expected to continue increasing. Despite already rising as much as 50% over the last four years, homeowners insurance rates are expected to rise 11%, on average, nationwide by the end of 2025 – fueled in part by higher construction costs linked to tariffs.
Some Georgia residents are facing double-digit increases each year – particularly in high-risk coastal areas. You don’t have to look far on social media, for example, to find Georgia homeowners complaining of 20% to 30% increases for both home and auto insurance.
Georgia Homeowners Could Face More Cancellations & Denials
It’s not just about higher prices. Eventually, insurers stop covering risky homeowners completely.
As insurers grapple with higher risks, they can increase premiums or use other strategies to manage that risk.
Some insurers engage in selective underwriting, for example. They use satellite imagery and drone videography to assess individual properties. They might use a drone to look at your aging roof, for example, and cancel your policy based on roof condition.
Other insurers increase their denial rates. They find more reasons to deny or reduce payouts for homeowners, causing homeowners to cover losses out of pocket.
Some insurers simply cancel policies, fail to renew policies, or leave the state entirely.
Overall, rising insurance premiums make life harder for homeowners in Georgia. Legislators have proposed various solutions – like tort reform – to handle the ongoing insurance affordability crisis in the Peach State.
