The Insurance Industry’s Favorite Myth—Debunked

Are Lawyers Really Driving Up Insurance Costs?

You’ve heard it before: “Lawyers are why insurance is so expensive.”

That talking point comes straight from the insurance industry—but the numbers tell a very different story.

The Truth Behind the Narrative

Across the country, “tort reform” laws have taken away legal rights with the promise that premiums would go down.

But here’s the reality:
There’s never been a guaranteed reduction in insurance rates tied to those laws.

The insurance companies have never, and will never, reduce insurance premiums as a result of new laws that take away your rights! 

So, What’s Really Going On?  Insurance companies are making RECORD PROFITS, and they want that to continue!

Insurance companies collect premiums, invest that money, and when things go wrong—they shift the blame.

But:

-Lawyers don’t set premiums
-Lawyers don’t run insurance companies
-Lawyers don’t control investment decisions

Bottom Line

Profit increases  (2024 → 2025):

-Liberty Mutual: $4.38B → $6.8B (+55%)
-Travelers: ~$5B → $6.29B (+26%)
-Progressive: ~$2.36B → $2.95B (+25%)
-State Farm: $5.3B → $12.9B (more than +100%)
-Allstate: $4.6B → $10.2B (+121%)
-Nationwide: $1.3B → $3.2B (+146%)
-Chubb: $9.2B → $10.31B (+11.2%)
 

Credit: NYSTLA, 4/2/26