Americans’ home and auto insurance rates have been soaring for years, with inflation, mounting losses from natural disasters, and rising repair and construction costs all playing a role.
But the industry points to a significant driver behind accelerating premiums that often goes overlooked: the mounting lawsuits and payouts that cost insurers.
David Sampson, president and CEO of the American Property Casualty Insurance Association (APCIA), told FOX Business that even with all the pressures the industry is currently facing with huge losses due to hurricanes and wildfires, insurance regulatory dysfunction in some states, and the threat of tariffs driving up costs further, “Our number one priority is still addressing legal system abuse, because it is the major cost driver that’s having a huge negative impact on insurance availability and affordability.”
The APCIA says the American household pays more than a $4,200 “tort tax” due to unnecessary and abusive litigation across the …