Texans for Lawsuit Reform announced that lawsuit abuse is driving double-digit insurance increases in Texas, raising costs for every claim and premium, and noted that other states have cut these burdens through reforms targeting the trial lawyer lobby.
According to Texans for Lawsuit Reform, double-digit insurance increases in Texas are not coincidental. The organization said that lawsuit abuse drives up the cost of every claim and premium. They reported that other states have lowered the trial lawyer tax by passing reform and suggested that Texas could achieve similar results if it overcomes obstacles posed by the trial lawyer lobby.
A report indicates that Texas has the sixth-highest insurance burden among U.S. states and Washington, D.C., at 10.95 percent of median take-home income. Texans pay $8,653 annually for combined home and auto insurance, ranking fourth in total cost. Lawsuit abuse contributes to high insurance premiums through elevated tort costs, with Texas leading in year-over-year growth in tort costs.
The U.S. Chamber of Commerce reported that the hidden costs of lawsuits on U.S. households continue to grow. If current trends persist, overall tort costs are projected to rise to over $900 billion by 2030, affecting families through higher prices and reduced economic opportunities.
Texans for Lawsuit Reform, founded in 1994, is a non-partisan organization with over 16,800 supporters from 900 Texas towns and cities representing 1,255 trades and professions. The group works to establish a fair, efficient, and predictable civil justice system that discourages non-meritorious lawsuits and excessive damage claims. Their advocacy has resulted in comprehensive tort reforms, helping Texas rank as the best state for business for 19 consecutive years.
