(The Center Square) – Georgia Insurance Commissioner John King said Wednesday he approved a rate filing from State Farm that would decrease the carrier’s automobile insurance rates by 3%.
The reduction means State Farm customers have seen an average 10% drop in their rates over the past year, King said in a release.
State Farm said the company has lowered annual premiums by more than $400,000 since December, averaging $190 in savings per private passenger car.
“We’re going to continue fighting to position Georgia as a national leader in affordable coverage, marketplace stability, and strong protections for families,” King said.
The average cost of car insurance for Georgia is $3,485 annually for full coverage, or $290 a month, according to a report by credit monitoring company Experian. Drivers without financed or leased vehicles pay an average of $2,181 for minimum coverage, or $182 a month.
High jury verdicts were blamed for rising automobile insurance costs. The Georgia General Assembly passed a tort reform package in the 2025 session that banned three legal procedures that some say inflated jury awards. One was a prohibition on “phantom damages” that were based on high medical bill estimates that were never paid, instead of actual medical costs.
The bill also allows evidence of seat belt usage to be admitted in lawsuits involving automobile crashes.
Detractors said there was no evidence that the tort reform package would lower insurance premiums. Even King said in a February legislative hearing that he couldn’t guarantee that rates would decrease.
“I don’t think you’ll see an immediate one year because the companies are going to watch. This has a lagging effect,” King said of future reductions. “I think it is going to be a slow decline but at least we can stop the rates from increasing at the rate that they’re increasing.”
The Center Square was unsuccessful prior to publication getting comment on the volume of policies in Georgia from State Farm.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.