Protecting American Consumers Together said on Jan. 30 that lawyer billboards along highways contribute to higher auto insurance premiums for Colorado drivers by encouraging prolonged legal cases and inflated settlements, a phenomenon the group calls the Highway Billboard Tax.
The organization said these increased costs are ultimately passed on to consumers, affecting families and businesses across the state. Protecting American Consumers Together made the statement in an X post that connects lawyer billboards directly to increased costs passed on to consumers in the form of higher insurance premiums. The post describes how prolonged cases and inflated settlements create what it calls the Highway Billboard Tax, affecting everyday drivers according to Protecting American Consumers Together.
Colorado has seen some of the fastest-rising insurance premiums in the country since 2020, with litigation costs identified as a key contributing factor passed through to policyholders according to civil justice reports. These elevated rates affect families and businesses across the state, according to Bankrate.
Less than 45 cents of every dollar spent on lawsuits actually goes to compensate injured victims, according to data cited in civil justice reports. One in three business owners says they have been sued or threatened with a lawsuit recently. The cost to defend many claims can reach tens of thousands of dollars without a trial and far more if the case proceeds, which insurers factor into premium calculations for auto coverage. These expenses are ultimately passed along to Colorado drivers according to civil justice reports.
Protecting American Consumers Together (PACT) operates as a national advocacy organization dedicated to protecting consumers, strengthening the legal system, and exposing predatory legal practices. The group works to highlight how certain litigation tactics increase costs for American families, including higher insurance premiums. PACT focuses on reforms that promote fairness and transparency in the civil justice system while preserving access for legitimately injured parties according to PACT.
