HB345: HB345 Insurance; prohibit raises in liability insurance rates for five years

Liability insurance covers costs when a policyholder is found responsible for injury or damage to someone else. This bill would add a new section to Georgia's insurance code (O.C.G.A. Title 33) that stops insurers from increasing liability insurance rates for any reason, no matter what other laws might otherwise allow. The new rule would take effect January 1, 2026, and would apply to all liability insurance policies, contracts, and certificates issued, delivered, continued, or renewed in Georgia on or after that date. The rate freeze would automatically expire, or be repealed, on January 1, 2031, meaning the restriction is built to last five years unless lawmakers act again before then.

• Adds a new Code section (O.C.G.A. § 33-1-28) barring any insurer from raising liability insurance rates in Georgia.
• Overrides any other conflicting law that might otherwise let insurers raise these rates, per the 'notwithstanding' clause.
• Sets the rate freeze to automatically expire on January 1, 2031, five years after it begins.
• Applies the freeze to all liability policies, contracts, and certificates issued, delivered, continued, or renewed in Georgia starting January 1, 2026.

Insurance companies that sell liability insurance in Georgia, and Georgia businesses and individuals who hold liability policies, such as drivers, property owners, and professionals who carry liability coverage as part of their operations.

If enacted, Georgia policyholders would be protected from liability insurance premium increases for five years, while insurers would lose the ability to adjust these rates upward even if their costs or claims rise during that period.

• Section 1 creates new Code section 33-1-28, stating no insurer shall increase liability insurance rates, regardless of any other law.
• Section 1 also builds in an automatic repeal date of January 1, 2031, ending the rate freeze after five years.
• Section 2 sets the effective date as January 1, 2026, applying it to all liability policies issued, delivered, continued, or renewed on or after that date.
• Section 3 repeals any existing laws that conflict with this new rate freeze.

1. 2025-02-12House Second Readers (House)
2. 2025-02-11House First Readers (House)
3. 2025-02-10House Hopper (House)

• Dar'shun Kendrick (D, HD-095)Primary sponsor
• Shea Roberts (D, HD-052)
• Doreen Carter (D, HD-093)
• Tanya Miller (D, HD-062)
• Samuel Park (D, HD-107)
• Karen Bennett (D, HD-094)

• liability insurance
• insurance rates
• insurance regulation
• consumer protection