According to a recent survey from Trusted Choice, nearly 3 in 5 independent agents said their customers are unaware of how legal system abuse impacts their premiums, deductibles and coverage options. (Credit: Adobe Stock)

Legal system abuse costs families in the U.S. an extra $5,000 per year, the Independent Insurance Agents & Brokers of America (the Big “I”) reports. To combat this, the organization has released a toolkit to help independent insurance agents educate their clients on how legal system abuse influences insurance costs.

Many of these inflated claims, the Big “I” says, are fueled by third-party litigation funding. This allows investors to fund a lawsuit in exchange for a large portion of the settlement. This adds billions to insurance costs.

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