What happened: A recent report has drawn a connection between widespread attorney advertising for auto accident claims and increasing auto insurance costs across the U.S.

Tell me more: The Insurance Research Council (IRC) surveyed consumers nationwide to assess opinions on attorney advertising’s impact on auto insurance.

• Findings show a growing link between lawyer ads for accident claims and the increased frequency and cost of claims, which contribute to rising insurance premiums.

By the numbers: 60% of respondents agreed that attorney advertising increases the number of auto claims, up from 55% in 2021.

• 52% felt these ads increase their auto insurance costs, a rise from 45% in 2021.
• Awareness of third-party litigation financing is also on the rise, with most respondents favoring transparency when outside investors are involved in litigation.

TLR Thoughts: Plaintiff’s attorneys have created a culture of litigation in Texas, where even the most minor event can lead to a lawsuit, regardless of who was at fault. Texas can’t sustain an environment where lawsuits are the rule, not the exception. The Texas Legislature should consider the impact rampant attorney ads are having on litigation rates and insurance costs for Texas families and employers.

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