INDIANAPOLIS (March 7, 2008) – Georgia auto consumers should see more competition on auto insurance thanks to legislation approved by the state Legislature. The rate modernization language adopted this week provides rating reform and more choice for policyholders in their uninsured motorist coverage.
“SB 276 allows insurers to set rates for private passenger motor vehicle insurance, other than the mandatory minimum limits, without approval of the insurance commissioner,” said Liz Reynolds, NAMIC’s Southeast state affairs manager. “Market competition will ensure that rates accurately reflect loss costs, which benefits consumers.”
The rate modernization language in the measure provides that the rates, rating plan, rating system, or underwriting for private passenger motor vehicle insurance will be effective upon filing. However, minimum limits coverage will continue to be regulated.
Additionally, an amendment to the measure allows consumers to choose uninsured motorist coverage in one of two ways. They can continue to opt for coverage that does not stack, as the current law requires, or they may select stackable uninsured motorist coverage - meaning it will pay up to the policy limit if necessary whether the at-fault driver is uninsured or underinsured - for a higher rate.
“In one fell swoop, the Legislature has expanded consumer choice while continuing to provide regulatory protection for mandatory coverage,” Reynolds said. “Also, the legislation makes it possible for insurance companies to react more quickly to changing market conditions and actively compete for business, which also benefits consumers.”
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