You're watching the big game when another commercial comes on. A dramatic voice, footage of twisted metal, flashing lights. "Injured in a crash? You deserve millions! Call now!"
It's not your imagination. These ads are everywhere. In 2024, attorneys and legal service advertisers spent $2.5 billion on TV ads alone — roughly one legal ad airing on television every two seconds.
But these ads aren't just annoying background noise. They're quietly raising your auto insurance premiums — even if you're a safe driver who's never filed a claim.
The Root of Rising Insurance Costs
If you’ve watched your premium increase at every renewal, inflation and rising repair costs are only part of the story. A bigger culprit is the growing abuse of the U.S. legal system. Increased attorney advertising, inflated medical costs, sophisticated litigation tactics, and third-party lawsuit funding all contribute toward higher insurance costs.
This article is part of a series documenting the growing increase in legal abuse. It examines one of the primary drivers of the sharp rise in insurance premiums — the alarming growth in personal injury attorney advertising.
The Advertising Arms Race
The numbers are staggering. One of the largest personal injury firms in the nation spent $218 million on advertising in 2024. In general, auto-accident advertisements accounted for approximately $1 billion in spending.
Why do they spend so much? Because one auto injury case can generate $20,000 to $100,000 or more in legal fees. You see these ads everywhere: billboards on highways, TV commercials during local news, radio ads during drive time," car accident lawyer near me" search results, and social media targeting people who've searched for “auto repair.”
How Advertising Changes Everything
Twenty years ago, if you were in a fender-bender, you'd exchange insurance information and let the insurance companies involved work it out. Today, many drivers’ first instinct is to hire a lawyer before even calling their insurance company.
This shift isn't accidental. Research has documented dramatic increases in liability claims attributable to attorney advertising, resulting in more frequent attorney involvement, higher claim frequency, and expectations of large settlements and jury awards.
In psychology, this is called the "availability heuristic." When you see something repeatedly, your brain assumes it's necessary. Constant advertising creates beliefs that:
- Legal representation is always needed.
- Settling directly means "leaving money on the table."
- Every minor injury is worth a six-figure payout.
Cases that once settled for $3,000 to $5,000 now become $50,000 or higher demands when attorneys get involved. Both drivers and insurance companies face a more adversarial and costly system—one in which all policyholders’ premiums increase.
The Jurors
Those injury attorney ads don’t just target potential clients — they influence potential jurors as well. When jurors have seen numerous advertisements featuring "$10 million car crash settlement” headlines, this exposure can alter their perspective. Those numbers can create an "anchoring effect," meaning they become reference points for what seems normal.
From 2015 to 2020, the median jury award over $10 million increased from $20 million to $27 million. Studies found that states with the highest advertising spending — California, Florida, Georgia, New York, and Texas — also had the most "nuclear verdicts" (awards of $10 million or more).
From 2015 to 2019, the average verdict in the National Law Journal's Top 100 Verdicts more than tripled from $64 million to $214 million. When plaintiff attorneys suggest $5 million awards, jurors primed by advertising might view $1 million as a "reasonable compromise" — even when actual damages don't support it.
Misleading Tactics
Many ads employ tactics that mislead vulnerable accident victims. They feature dramatic crash footage and urgent voiceovers suggesting they’ll miss out if they don't call immediately. Testimonials proclaim "$5 million settlement for my car accident!" without any context around the severity of the injuries or what the client actually received after legal fees.
Most ads don't mention that attorney fees take 33-40 percent right off the top. What’s more, about a third of top advertising spenders are lead generation companies. This means when you call, your private accident information gets sold to multiple law firms.
The Direct Impact on Your Premiums
As more people retain lawyers for minor accidents, insurance companies must also pay attorneys to defend claims. Jurors influenced by advertising often view large awards as the norm, so insurers usually factor trial risk into settlement evaluations, which can be even more expensive. And who absorbs these costs? Policyholders.
It's a feedback loop. Big verdicts get advertised, which attracts more clients. This, in turn, leads to more lawsuits, raises jury expectations, and results in larger verdicts, thereby generating more advertising.
States Fight Back
California recently moved to crack down on misleading lawyer ads. Under longstanding ethics rules, attorney advertising must not contain false, deceptive, or misleading statements and must clearly identify the responsible lawyer and firm. With the October 2025 enactment of Senate Bill 37, ads must now conspicuously show a licensed attorney’s name and at least one bona fide office address, and may not tout unverifiable “past results,” awards, or sensational “quick-cash” promises.
Most important: SB 37 gives anyone harmed by a deceptive legal-services ad the right to sue for statutory damages.
In other states, Florida prohibited legal ads from using government logos and required consent before sharing health information from ads. Texas now requires lawyers to disclose what clients actually received, not just gross verdicts. Louisiana mandates disclosure of attorney fees in advertisements. Kansas, Tennessee, and West Virginia have also enacted protections against misleading ads.
These reforms help accident victims make informed decisions and reduce pressure to hire attorneys when direct settlement would be better.
What You Should Know
Many auto injury claims can be resolved effectively through direct settlement with your insurance company. This approach often means:
- You receive the full settlement amount without legal fees
- Resolution typically happens more quickly
- You remain actively involved in the process throughout
Consider a settlement of $50,000. If you settle directly with your insurer, you receive the full amount. With attorney representation on a $75,000 settlement, after the typical 33-40 percent contingency fee and associated costs, you might receive $43,000-$48,000. While attorneys can sometimes negotiate higher gross amounts, it's worth considering what you'll actually take home.
What You Can Do
Stay informed about how the legal system works and consider supporting state-level transparency reforms for legal advertising. If you're in an accident, remember that your insurance company is there to help. Reaching out to them early in the process can often lead to faster, fairer resolutions. When making decisions about your claim, focus on your specific circumstances and what's truly best for your situation.
When Legal Representation Can Be Valuable
Consulting with an attorney after an accident can be helpful in the following situations:
- Victims sustain serious injuries that require extensive treatment
- There are questions about who’s at fault
- Multiple parties are involved
- Initial settlement discussions haven't been productive
If you do need to consult an attorney, be wary of ads that promise specific settlement amounts, create a sense of urgency, or present a one-sided view of insurance companies. And it goes without saying: avoid “ambulance chasers” who contact you unsolicited after an accident.
The Bottom Line
With roughly 45,000 auto accident lawyer TV ads airing each day, it's clear that advertising has become a significant force in auto insurance. This pattern creates the feedback loop we mentioned above. Unfortunately, these rising costs affect all drivers, including those with clean driving records.
The next time you see an injury lawyer ad, it's worth considering the bigger picture — these advertising campaigns come at a cost that ultimately affects us all.
Questions About Your Auto Insurance or Claims?
Contact Wawanesa at 800-640-2920. We'll help you understand your coverage, explain your options, and work to resolve any claims fairly and efficiently.
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