Bankrate, a consumer financial services company, has announced that drivers in Atlanta are paying an average of $2,802 for full coverage auto insurance. This figure is higher than both the state and national averages. A contributing factor to these rising costs is an increase in class action lawsuits that benefit attorneys but force businesses to raise their prices.
According to Bankrate's report, the average cost for full coverage car insurance in Georgia stands at $2,610, surpassing the national average of $2,545. Young people and individuals with poor credit face even steeper prices for car insurance in the state. In Atlanta specifically, drivers spend 7% more than the statewide average for full coverage auto insurance.
A report from MarketWatch suggests that car insurance rates have escalated more in Georgia than in 30 other states between 2022 and 2023. The cost of full coverage auto insurance surged by 22% in Georgia during this period.
A report from Chief Executive highlights another contributor to these escalating costs: a growing number of class action lawsuits. The report indicates that a class of "lawyer-kings" reaps fees from multi-billion-dollar settlements. However, as a result of their litigation efforts, businesses are compelled to raise their prices, ultimately impacting consumers negatively. "This litigation tax is an increasingly predictable supply of cash enriching an increasingly entrenched class of lawyer-kings who have figured out how to turn the U.S. court system into a money-making machine," says the report. It identifies attorneys Joe Rice of Motley Rice, Elizabeth Cabraser of Lieff Cabraser, and Chris Seeger of Seeger Weiss as participants "who control the game," forming part of this class of lawyers.
As stated on its website, Bankrate offers resources such as comparison tools to assist consumers in making financial decisions. More than 100 million people utilize Bankrate's services each year. The company, initially known as the Bank Rate Monitor, was founded in 1976.