Congressman Mike Collins (R-GA) has voiced his opposition to HR 6884, a bill that proposes to increase the minimum liability insurance for trucking companies from $750,000 to $5 million. Collins argues that this legislation would spur more lawsuits and cause "trucking rates [to go] through the roof," with the resultant costs ultimately being borne by consumers. The Congressman expressed these views during an April 30 episode of the Land Line podcast.
"Somebody's going to pay for whatever happens, and that's going to be passed onto the consumer," said Collins. "You're going to see trucking rates going through the roof, and then you're going to see the consumer price just continue to skyrocket. What we actually need is true tort reform out there, and that just means that when these people don't win their lawsuits, that they actually have to pay, because an insurance company right now, they will take a look at it and say, ‘well, you know, it's just cheaper for us to pay x amount and be done with it,' and so x amount right now is a $750,000 policy. It's going to be a whole lot different when it's x amount on a $5 million policy, and then at the end of the day, the insurance company is going to pass that on right back to the trucking company in the form of a rate increase."
According to the same podcast, Collins warned that if HR 6884 were enacted into law, it could "destroy the trucking industry." Instead of increasing liability insurance, he advocates for tort reform as a beneficial measure for not only the trucking industry but "all industries." He proposed several reform measures such as capping "runaway" verdicts and obligating trial attorneys to pay if they file a "frivolous" lawsuit. Moreover, Collins suggested that these lawsuits should be handled in federal courts since trial attorneys currently aim to file their cases in states known for being most favorable towards plaintiffs in order to maximize their potential winnings. According to Collins, implementing tort reform measures that lead to a decrease in "frivolous" lawsuits would help reduce costs for consumers across various sectors including insurance and healthcare.
The American Tort Reform Association (ATRA) identified Georgia, Collins' home state, as the nation's leading "judicial hellhole" last year due to issues such as numerous "excessive" and "nuclear" verdicts, according to a press release. The state continues to witness an upsurge in verdicts exceeding $10 million, including a staggering $1.7 billion verdict in August 2022. Georgia is among the few states that permit "anchoring," a practice where attorneys can propose an extremely high award amount for noneconomic damages, thus setting an "anchor" point in jurors' minds which may influence their decisions.
In August, Georgia Governor Brian Kemp called for tort reform to be a priority for his state legislature. He argued that excessive lawsuits were driving up insurance costs in Georgia, as reported by WABE. Kemp pointed out that the increasing car insurance rates are one of the consequences of these excessive lawsuits. Georgia has some of the highest car insurance costs in the country. "The laws on our books make it too easy to bring frivolous lawsuits against Georgia business owners which drive up the price of insurance and stop new, good-paying jobs from ever coming to communities that need them the most," Kemp told the Georgia Chamber of Commerce.
According to The Zebra, Georgia drivers experienced an average 29% rate increase for their car insurance in 2023 compared to 2022. Several factors have contributed to this surge in car insurance costs, including "more litigated claims due to increased accident severity" and rising medical care costs. Currently, Georgia drivers are paying approximately 13% more than the national average for their car insurance coverage.
Collins and his wife established a trucking company in the 1990s that currently employs over 100 Georgian drivers, as stated on his website. Prior to his election to Congress, he served as president of his local Chamber of Commerce. He represents Georgia’s 10th Congressional District.
