A new report from LexisNexis Risk Solutions shows a major rise in personal injury lawsuits in the U.S., and it's creating a serious impact on car insurance premiums. The study says about 85% of accident victims are reached out to by lawyers and accident victims that hire an attorney typically get more money from an insurance company.
However, higher settlements are requiring the insurance company to increase rates for every driver. For example, in April 2025, car insurance companies increased their rates by 6.4%. By the end of next year, experts predict their rates will need to account for another 7.5%.
Aggressive marketing practices by personal injury law firms are also being scrutinized. Having a lawyer can help many people get money they deserve, but a big part of why everyone is paying more for insurance is because of companies buying this kind of business.
People can protect themselves by using safe-driving discounts, having their insurance bundled together, and shopping around for rates.
‘Jim O’Callaghan, the minister for justice, is under significant pressure from his government colleagues to halt a major increase in personal injury payouts’
— Alliance For Insurance Reform (@InsuranceRefIre) July 8, 2025
Business, sports and community groups can’t afford the higher premiums it will cause.#NoTo17% https://t.co/4Ot14W063h pic.twitter.com/TDH7IF0A51
Tom Girardi Sentenced to Prison in Fraud Case
In yet another high-profile legal story, Tom Girardi has been sentenced to a little more than seven years in federal prison. Girardi, a prominent personal injury attorney, was known for working on, defending his position in the Erin Brockovich case. Eventually, Girardi was convicted of stealing millions of dollars from clients, including family members of victims from the Lion Air crash.
At 86 years old, Girardi's sentence is a dramatic collapse from grace and power. In sentencing Girardi, the prosecutors remarked that Girardi's law firm operated as a Ponzi scheme, and ordered Girardi to pay more than $2 million in restitution to his victims.
While the case has shocked the legal profession, it has also raised serious questions about ethics and trust in personal injury practice. Girardi's downfall is a cautionary tale for clients, and attorneys.
As injury claims increase and law firms become subject to more public oversight and scrutiny, this case strongly reminds everyone that ethical behavior in the justice system is critical.
