Georgia House Bill HB477

Georgia 2025-2026 Regular Session

• Introduced: 2/18/25

Caption

Insurance; prohibit insurers from raising private passenger motor vehicle insurance rates more often that once every calendar year

Impact

If enacted, HB 477 would have notable implications on state law regarding insurance regulation. It establishes specific conditions under which insurers can adjust rates, potentially leading to a more predictable and manageable cost structure for motorists. The effective date for this legislation would be January 1, 2026, which gives insurers time to adjust their practices and consumers time to adapt to these new regulations. The bill is expected to enhance consumer protection by curbing excessive rate increases that can occur in a competitive market.

Summary

House Bill 477 aims to amend the regulation of private passenger motor vehicle insurance rates in Georgia. The bill seeks to prohibit insurers from raising their rates more than once every calendar year, which is intended to create stability in insurance costs for consumers. The regulation falls under Chapter 9 of Title 33 of the Official Code of Georgia Annotated, addressing the standards applicable to rate making and use. By limiting the frequency of rate increases, the bill aims to protect consumers from sudden hikes in insurance premiums.

Contention

While the bill is primarily aimed at consumer protection, there may be debates concerning its impact on the insurance industry. Supporters may argue that the legislation promotes fairness and reduces the financial burden on drivers, especially in times of economic uncertainty. Conversely, critics may contend that limiting rate adjustments could hinder insurers' ability to respond to changing market conditions, potentially impacting their financial viability. This push and pull between consumer protection and the insurance industry's operational needs is likely to be a focal point of the discussion surrounding HB 477.