ATLANTA — Georgia motorcoach operator Clarence Cox, III, is carving out time in his busy schedule to urge state lawmakers to address rising commercial insurance costs.
What he’s discovering, he said, is that many legislators remain unaware of the financial pressures facing the bus and motorcoach industry — or the industry’s significant impact on Georgia’s economy.
Cox, owner of Georgia Coach Lines Inc. in the Greater Atlanta area, said members of the House Blue Ribbon Committee were impressed by his presentation and surprised by both the high cost of motorcoaches and the insurance premiums required to operate them.
“They had no idea, one, how much buses cost,” said Cox, a United Motorcoach Association board director. “And then I shared with them how much buses cost and how much we pay for insurance. I think it went well.”
The Nov. 21 hearing was part of the committee’s review of statewide insurance rates following recent tort reform measures. Cox said the reforms “really haven’t made any difference yet, leading lawmakers to hold listening sessions ahead of the next legislative session in January.
‘They didn’t have any idea’
Cox presented an economic impact study from the American Bus Association that he said “blew their minds.” It showed that the motorcoach industry contributes roughly $1.8 billion annually to Georgia’s economy.
“The chair said, ‘Well, you know, tourism funds a lot of our state operations anyway, so we definitely need to fix this for you guys,’” Cox said. “They didn’t have any idea what our contribution as a motorcoach industry was.”
Georgia Insurance Commissioner John King told the hearing that only eight companies currently insure commercial vehicle operations in Georgia, a number he said has decreased “from 30 or 40” because insurers “say they can’t make any money.”
Other industry groups testified at the session, including representatives from the health care and collision repair sectors. Cox said members of the Collision Center Association complained that insurers often refuse to fully fund repairs on modern vehicles, including recalibration of safety systems.
“They’re looking for a law to strengthen it, to say that it must be put back together like it was before the accident,” he said.
Cox said several lawmakers asked him to provide statutory language that might help address the availability of commercial insurance.
“This is some language that would help us greatly,” he said.
Cox said he plans to attend the next committee hearing, Dec. 21 in Gwinnett County.
