Protecting American Consumers Together (PACT) announced that attorney billboard advertising in Colorado contributes to higher insurance premiums, as prolonged cases and inflated settlements increase costs for drivers.
The organization said the prevalence of lawyer billboards along state highways acts as a hidden cost for consumers. According to PACT, these advertisements encourage prolonged legal battles and inflated settlements, which in turn drive up insurance rates for all drivers, highlighting the economic impact of certain legal practices, as said in a post on X.
A study by the American Tort Reform Association found that excessive litigation has reduced personal income in Colorado by $5.7 billion annually. Firms including Anderson Hemmat, Bachus & Schanker, and McDivitt Law Firm use prominent billboard advertising, which contributes to higher lawsuit filings. The Swiss Re Institute reports that these practices increase business defense and liability costs by 20%, costs that are ultimately passed on to consumers in the form of higher insurance premiums, according to a post on Facebook.
Nationally, abuse of the legal system drives $230 billion in insurance losses each year, directly increasing premiums for American consumers. Excessive lawsuits add roughly $6,664 annually to the cost for an average family of four. The U.S. Chamber of Commerce notes that tort-related expenses grow nearly 9% per year, imposing more than $4,000 in annual costs per household, according to Insurance Information Institute and Munich Reinsurance America.
Protecting American Consumers Together is a 501(c)(4) national advocacy and educational organization dedicated to standing up for plaintiffs, victims, and consumers. It focuses on reforming predatory legal practices that drive up costs for everyday Americans… PACT launched campaigns to raise awareness about lawsuit abuse and its impact on the economy.
