Senate · Introduced · 2025-2026 Regular Session

SB 506: Regulation of Rates; vehicle insurers from using any geographic classifications in vehicle insurance policies; prohibit

Last action February 17, 2026 · Senate Read and Referred

A Georgia Senate bill would ban car insurance companies from using ZIP codes, neighborhoods, or other location-based factors to set rates, deny coverage, or cancel policies, starting January 1, 2027.

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In plain language

Georgia law currently lets vehicle insurers set rates and make coverage decisions based on where a driver lives, including factors like ZIP code or neighborhood. This bill would change that by amending the state's insurance rate regulation law (O.C.G.A. § 33-9-4) to add two new rules. The first new rule bars insurers from basing any rating standard or plan for vehicle insurance on geographic identifiers such as ZIP codes, postal codes, census tracts, neighborhoods, or municipalities. The second bars insurers from using those same geographic factors to deny coverage, refuse to issue a policy, cancel or not renew a policy, place a customer in a pricing tier, or raise premiums. The changes would take effect January 1, 2027, and would apply to vehicle insurance policies issued, renewed, or modified on or after that date.

What the bill does

Adds a new rule to Georgia's insurance rate law barring vehicle insurers from basing rating plans on any geographic identifier, including ZIP codes, census tracts, neighborhoods, or municipalities.
Adds a second new rule barring insurers from using those same geographic factors to deny, cancel, or not renew a policy, or to set tier placement, surcharges, or premium increases.
Sets an effective date of January 1, 2027, applying the ban to vehicle insurance policies issued, renewed, or modified on or after that date.
Repeals any existing Georgia laws that conflict with these new restrictions.

Who it affects

Vehicle insurance companies operating in Georgia, which would have to redesign their rating and underwriting practices, and Georgia drivers, whose premiums and coverage decisions could no longer be based on where they live.

Why it matters

If enacted, drivers in areas currently charged more because of their ZIP code or neighborhood could see rates recalculated without that factor, while insurers would need new rating models that exclude location-based pricing for vehicle coverage decisions statewide.

Key provisions

Section 1 amends O.C.G.A. § 33-9-4 by adding paragraph (11), prohibiting insurers from basing any vehicle insurance rating standard or plan on geographic identifiers like ZIP codes, census tracts, neighborhoods, or municipalities.
Section 1 also adds paragraph (12), prohibiting insurers from using geographic identifiers to deny, refuse, cancel, or not renew a policy, or to set tier placement, surcharges, or premium increases.
Section 2 sets the effective date as January 1, 2027, applying to policies issued, renewed, or modified on or after that date.
Section 3 repeals any conflicting laws.

From the bill

“No insurer shall base any standard or rating plan on vehicle insurance, in whole or in part, directly or indirectly, upon any geographic identifier, including, but not limited to, a ZIP Code, postal code, census tract, neighborhood, municipality, or any other geographic classification used to group consumers based on location”
This new rule bars insurers from using location-based factors to set vehicle insurance rates.

“No insurer shall base any denial, refusal to issue, cancellation, nonrenewal, tier placement, surcharge, or increase in premiums on vehicle insurance, in whole or in part, directly or indirectly, upon any geographic identifier”
This provision bars insurers from using location to deny, cancel, or raise the price of coverage.

Status timeline

2026-02-17Senate Read and Referred (Senate)
2026-02-12Senate Hopper (Senate)

Topics

car insurance rates
insurance regulation
ZIP code pricing
consumer protection

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