Dahlonega, Georgia, ranks among the most expensive cities in the state when it comes to the cost of living. The city's high costs are attributed to a surge in tort lawsuits across the state, leading to increased expenses for necessities such as car insurance.
According to RentCafe, a provider of real estate market data, Dahlonega's cost of living is 10% higher than the Georgia average. Other cities surpassing the state average include Savannah (+3%) and Athens (+6%). RentCafe sources its data from the U.S. Census Bureau, Yardi Matrix, and the Council for Community and Economic Research.
State & Local reports that Georgia has one of the highest car insurance costs in the nation. Drivers in Dahlonega pay an average of $1,794 annually for car insurance, exceeding the national median of $1,555. Factors contributing to Georgia’s high cost of car insurance include a large number of uninsured drivers and its status as an at-fault or "tort" state.
The Insurance Information Institute (III) identified another factor driving up Georgia’s car insurance costs: rising "social inflation" or increased costs related to insurance claims. According to III's report, social inflation is significantly impacting liability lines related to personal and commercial auto insurance due to high litigation costs. "Simply put, skyrocketing legal costs play a key role in social inflation," said III. "These costs accumulate from the increasing number of lawsuit filings, extended litigation, and outsized jury awards."
The report further emphasized on taking action against "exploitative attorney advertising" and lack of transparency surrounding third-party litigation funding (TPLF). It stated that attorneys often engage in "dragnet" advertising—attempting to recruit potential claimants through fear- and anger-driven campaigns. Furthermore, TPLF has been contributing to social inflation by prolonging litigation periods, thus making insurance coverage more expensive for all policyholders. The report called for more transparency and accountability in cases involving TPLF.
RentCafe, according to its website, offers data and reports related to the real estate market. Its information has been featured in several renowned publications including The New York Times, Forbes, and Market Watch. RentCafe also provides consumers with information about house and apartment listings.