SB506: SB506 Regulation of Rates; vehicle insurers from using any geographic classifications in vehicle insurance policies; prohibit

Currently, Georgia car insurance companies can factor in where a driver lives, such as their ZIP code or neighborhood, when setting rates or deciding whether to offer coverage. This bill would change that by amending Georgia's insurance rate regulation law (O.C.G.A. § 33-9-4). The bill adds two new rules to that law. First, insurers could no longer base their rating standards or plans for vehicle insurance on any geographic identifier, including ZIP codes, postal codes, census tracts, neighborhoods, or municipalities. Second, insurers could not use those same geographic factors to deny coverage, refuse to issue a policy, cancel or not renew a policy, place a driver in a higher-cost tier, or raise premiums. The changes would take effect January 1, 2027, and would apply to all vehicle insurance policies issued, renewed, or modified on or after that date.

• Bars vehicle insurers from using any geographic identifier, such as a ZIP code or neighborhood, to set rating standards or rating plans.
• Bars insurers from using geographic identifiers to deny, refuse to issue, cancel, or decline to renew a vehicle insurance policy.
• Bars insurers from using geographic identifiers to place a driver in a pricing tier, add a surcharge, or raise premiums.
• Sets the changes to take effect January 1, 2027, applying to all vehicle insurance policies issued, renewed, or modified on or after that date.
• Repeals any existing Georgia laws that conflict with these new restrictions.

The bill affects vehicle insurance companies operating in Georgia, which must change how they calculate rates and make coverage decisions, and Georgia drivers, whose premiums and coverage eligibility could no longer be based on where they live.

If enacted, drivers in neighborhoods or ZIP codes currently associated with higher premiums could see rates set on other factors instead, while insurers would need to redesign rating systems that have historically relied on location data to price risk.

• Section 1 amends O.C.G.A. § 33-9-4 by adding paragraph (11), barring insurers from basing vehicle insurance rating standards or plans on any geographic identifier, including ZIP codes, postal codes, census tracts, neighborhoods, or municipalities.
• Section 1 also adds paragraph (12), barring insurers from basing denial, refusal to issue, cancellation, nonrenewal, tier placement, surcharges, or premium increases on those same geographic factors.
• Section 2 sets the effective date as January 1, 2027, applying to all vehicle insurance policies issued, renewed, or modified on or after that date.
• Section 3 repeals any conflicting Georgia laws.

1. 2026-02-17Senate Read and Referred (Senate)
2. 2026-02-12Senate Hopper (Senate)

• Nabilah Islam Parkes (D, SD-007)Primary sponsor
• Nan Orrock (D, SD-036)
• Elena Parent (D, SD-044)
• Harold Jones (D, SD-022)
• Randal Mangham (D, SD-055)
• Nikki Merritt (D, SD-009)
• RaShaun Kemp (D, SD-038)
• Jaha Howard (D, SD-035)
• Ed Harbison (D, SD-015)
• Derek Mallow (D, SD-002)
• Tonya Anderson (D, SD-043)

• car insurance
• insurance rates
• insurance regulation
• consumer protection