GoAuto Insurance has begun offering auto insurance coverage in Georgia, marking the company’s sixth state of operation following regulatory approval.
The direct-to-consumer insurer, which already operates in Louisiana, Nevada, Ohio, Texas, and Alabama, said the expansion aligns with its business model of using digital platforms and analytics-based underwriting to manage loss ratios.
“We’re committed to making dependable, cost-effective insurance accessible,” said Brad Scharf, chief operating officer.
According to AM Best, GoAuto reported net income of $911,000 for the first quarter, reversing a net loss of $1.2 million in the same period a year earlier. The company also reduced its net underwriting loss to $2.2 million, down from $3.7 million in the prior-year quarter.
Nearly two-thirds of GoAuto’s written premium is concentrated in Louisiana, followed by Texas, based on the same financial report.
Georgia’s personal auto insurance market has faced affordability challenges in recent years. Average annual premiums in the state increased by 5.6% each year from 2014 through 2022, outpacing the national average of 3.3%. Median household income in Georgia also remains roughly 9% below the US median, creating pressure on consumers seeking auto coverage.
These affordability dynamics have drawn attention from policymakers and insurers alike as they evaluate sustainable rate structures in the state.
The insurer’s entrance into Georgia also follows the state’s enactment of a tort reform package in April. The legislation includes revisions to premises liability standards, requires medical damages to be calculated based on actual care costs, limits certain attorney arguments for pain and suffering, and changes rules regarding attorney fees and case dismissals.
These tort reforms are expected to reduce litigation-related costs in auto liability claims, which have historically contributed to elevated insurance expenses in Georgia. The new measures – such as limiting how pain and suffering can be argued and eliminating double recovery of attorney fees – were structured to curtail excessive settlement pressures.
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