Survey shows lawsuits widely viewed as raising everyday insurance costs significantly.
A new nationwide survey is giving a clearer look at how people feel about the link between lawsuits and rising insurance bills. The findings show that many adults who have home, auto, or business policies believe the legal system is being used in ways that push costs higher for everyday coverage. The study, conducted by the Independent Insurance Agents & Brokers of America, gathered responses from adults aged 25 and older and shows that concerns about the growing number of lawsuits are becoming more widespread.
The survey found that more than half of those questioned worry that constant court battles raise their premiums. A large share also thinks the legal system helps certain parties more than others, with many respondents pointing to attorneys and law firms as the ones who come out ahead. Leaders from the group behind the study say the results match what many in the industry have been warning about for years. They say that ongoing legal fights, especially those seen as unnecessary, add steady pressure to insurance prices across all lines of coverage. When companies deal with more cases, they often face higher claim costs, and those expenses can be passed along to households.
Another part of the survey highlights how little some consumers know about third-party litigation funding, often called TPLF. This practice involves outside investors paying for lawsuits in exchange for a share of any payout. Around forty percent of respondents reported not knowing anything about the practice. Some in the industry argue that this lack of awareness makes it harder for the public to understand how certain legal strategies can steer cases toward larger settlements. They say this trend can lead to a cycle where more claims end up in court instead of being settled early, which can raise costs for insurers and, eventually, for the broader public.
The survey also asked whether adults would support reforms if they knew certain legal actions were tied to higher insurance expenses. A strong majority said they would back changes if these practices were proven to raise rates. Many respondents believe state and federal leaders should take the lead in shaping solutions. A smaller share thinks insurance companies and courts should have larger roles in addressing the issue. The mix of responses shows that people see the problem as one that crosses several parts of the system rather than falling on a single group.
Those who study legal trends say the growing concern over lawsuits points to a shift in public thinking. For years, the subject was mostly discussed within industry and legal circles. Now, with average insurance costs rising in many states, more people are paying attention to what drives those increases. Supporters of reform say the survey confirms that families are feeling the strain and want steps taken to bring more balance to the system. Critics of the current environment argue that unchecked legal actions place a heavy burden on households that are already stretched thin by higher prices in other areas.
Industry leaders say the survey results show that adults understand the connection between legal battles and higher bills. They say the rising number of claims that end up in court, along with funding from outside investors, can drive settlement amounts higher than in past years. They believe this trend could continue unless lawmakers, courts, and other groups work together to set clearer limits on practices that lead to long drawn-out cases.
While the debate continues, most respondents agree that fewer unnecessary lawsuits would help keep coverage more affordable. Many also think better public education on how the legal system affects insurance costs could bring more support for policy changes. With the survey results now public, the topic is likely to stay active in statehouses, courts, and industry discussions in the months ahead. For many people, the rising cost of protecting homes, cars, and businesses has already become a steady concern, and the question of how lawsuits feed into those bills looks set to remain a major part of the national conversation.
Sources:
Most Consumers Aware and Worried How Litigation Increases Insurance Cost
More than 80% of consumers fear ‘excessive lawsuits’ impact premiums
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