Increased Insurance Rates Not Due to Lawsuits

Alison De Villiers

Attorney
(866) 735-1102 Ext 682

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Despite claims by the insurance companies that insurance rates are skyrocketing due to lawsuits, the facts show that insurance rates are not determined by the amount paid out as a result of lawsuits. Even with recent "tort reforms," insurance companies have continued to raise insurance premiums.

In spite of the "lawsuit crisis," insurance companies are reporting records profits, even after Hurricane Katrina! A 2007 report by the Consumer Federation of America details exactly how insurance companies are overcharging on premiums, paying less on claims, and shifting their costs to consumers.