New Georgia law restricts truck-crash lawsuits against insurers

Kemp signs bipartisan bill limiting when insurers can be sued directly after crashes

Behind the 209,854 recorded crashes lies a volatile insurance landscape where traditional consumer protections simply do not apply. (Photo: Jim Allen/FreightWaves)

A new Georgia law means insurers are now mostly protected from lawsuits being filed directly against them after crashes involving trucks. Supporters see the measure as a response to financially crippling nuclear verdicts.

Gov. Brian Kemp recently signed the bill, which passed 172-0 in the state House of Representatives and 46-2 in the Senate. Insurers can now be sued directly only if a plaintiff can’t find the driver or the carrier that was involved in the accident, or if the carrier has gone bankrupt.

Backers say protecting insurers against such lawsuits would boost the struggling insurance market for carriers and reduce premiums.

An overwhelming majority of states already forbid most direct-action lawsuits against insurers of carriers and truck drivers, according to Insurance Journal, and insurers in states that do allow such actions have responded to huge jury verdicts and settlements by increasing rates or halting coverage altogether.

Bryce Rawson, assistant to Georgia Insurance Commissioner John King, said in January that the existing law “has destroyed our market. No one wants to insure trucking here,” Insurance Journal reported.

A similar bill in 2023 failed.

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2 Comments

  1. Stephen Webster

    In return for this cap medical services and medical support should paid for by the trucking companies or their insurance company. In Canada 🇨🇦 a major cause of homeless the delay of the major insurance companies.

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Steve Barrett

A copy editor for FreightWaves since 2019, Steve Barrett has worked as an editor and/or reporter for The Associated Press as well as newspapers in Texas, Georgia, North Carolina, Tennessee and Nebraska. He also served as a senior managing editor for a medical marketing company, collaborating with some of the nation's most respected health care organizations and specialists in major markets in New York and Pennsylvania. He earned a Master of Mass Communications degree from the University of Georgia and a Bachelor of Arts in English and Spanish from the University of South Dakota.