Insurance Research Council (IRC) announced results from a recent survey included 60% of Americans believe attorney advertising leads to an increase in auto accident claims, a significant factor contributing to rising insurance costs across the nation. 

The report, Public Opinions on Attorney Involvement in Claims, highlights that these findings come amid a time of general consumer frustration over rising living expenses, from groceries to housing costs.

“Most respondents believe that attorney advertising increases auto insurance costs by encouraging more legal involvement, which leads to higher claim settlements and legal expenses,” said Dale Porfilio, President of the IRC.The survey showed very strong support for transparency when outside investors are involved in litigation, with only 4% opposed.

A recent IRC press release noted the role that transparency in TPLF could play in reducing insurance costs, which remain a priority for many local residents. The IRC’s report calls attention to the financial impact of attorney advertising and TPLF and underscores the importance of clearer policies to ease the pressure on consumers.

Third-Party Litigation Funding (TPLF) enables investors to fund lawsuits in return for a portion of the settlement. Frequently unregulated, TPLF can increase legal expenses and disproportionately affect small businesses, while providing investors with tax-free returns.

A 2021 analysis by the Perryman Group found that misuse of the U.S. legal system leads to an annual loss of 4.24 million jobs, $429.35 billion in economic output, and over $110 billion in government revenues.

Since 2021, motor vehicle insurance costs in the U.S. have risen by approximately 43%, with the average annual premium for full coverage increasing from $1,567 in 2021 to an estimated $2,469 by 2024, CBS News reported. According to Money.com, this surge is expected to continue into 2024, with a projected 7% increase from 2023 levels.