{"id":2608957,"date":"2026-06-01T07:57:00","date_gmt":"2026-06-01T11:57:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-hidden-tax-thats-bleeding-your-wallet-dry-and-this-time-its-not-inflation\/"},"modified":"2026-06-01T08:11:30","modified_gmt":"2026-06-01T12:11:30","slug":"the-hidden-tax-thats-bleeding-your-wallet-dry-and-this-time-its-not-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-hidden-tax-thats-bleeding-your-wallet-dry-and-this-time-its-not-inflation\/","title":{"rendered":"The Hidden &#8216;Tax&#8217; That&#8217;s Bleeding Your Wallet Dry (and This Time It&#8217;s Not Inflation)"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fthe-hidden-tax-thats-bleeding-your-wallet-dry-and-this-time-its-not-inflation%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2608957&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The article argues that \u201clawsuit abuse\u201d targeting the trucking industry is driving up costs that ultimately reach consumers.It claims staged crashes, forum shopping, third-party litigation funding, and \u201cnuclear verdicts\u201d have increased litigation and settlements, contributing to higher commercial <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/spac-market-implosion-sticks-investors-with-deeply-discounted-buyouts\/\" title=\"SPAC Market Implosion Sticks Investors With Deeply Discounted Buyouts\">auto insurance premiums<\/a>. The piece cites research showing a rise in tractor-trailer-related cases, and notes insurance premiums have surged as 2020, including a reported 55% increase and additional increases in liability premiums.<\/p>\n<p>It also describes legislative efforts to curb these practices. The American Trucking Associations says lawmakers should include measures in a must-pass surface transportation bill, and it highlights bills such as Georgia\u2019s Lawsuit Abuse Reduction Act of 2025 (mandating sanctions for frivolous federal filings) and the FAIR trucking Act (aimed at limiting extremely large jury awards).The article says these proposals face strong opposition from groups representing plaintiffs\u2019 attorneys, including lobbying activity and public criticism.<\/p>\n<p>Beyond legislation, it points to a Supreme Court decision on freight broker liability that leaves brokers exposed to differing state rules, which business groups warn could raise downstream costs thru the supply chain. the article maintains that rising litigation risk is worsening insurance affordability and adds pressure to freight and consumer prices-potentially including higher food costs over time.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><br \/>\n<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<section> \t\t\t\t<script>console.log(\"ad slot (AC1)\")<\/script><script>console.log(\"ad slot (IC1)\")<\/script><script>console.log(\"ad slot (IC2)\")<\/script><script>console.log(\"ad slot (IC3)\")<\/script><script>console.log(\"ad slot (IC4)\")<\/script><script>console.log(\"ad slot (REP_0)\")<\/script><script>console.log(\"ad slot (REP_1)\")<\/script><script>console.log(\"ad slot (REP_2)\")<\/script><script>console.log(\"ad slot (REP_3)\")<\/script><\/p>\n<p>Americans may be paying a hidden \u201clawsuit tax\u201d through <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/vaccines-schools-and-racist-insurance-fact-checking-bidens-town-hall-claims\/\" title=\"Vaccines, Schools And Racist ...: \u2018Fact-Checking\u2019 Biden\u2019s Town Hall Claims\">higher insurance premiums<\/a> and higher prices for everyday goods, as trucking companies face rising litigation costs from staged crashes, massive settlements and \u201cnuclear verdicts.\u201d<\/p>\n<p>Industry groups and lawsuit abuse critics told the Daily Caller News Foundation that costs from frivolous lawsuits and rising settlements are being passed down to consumers through elevated insurance premiums, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/u-s-inflation-jumped-8-5-in-past-year-highest-since-1981\/\" title=\"U.S. Inflation Jumped 8.5% in Past Year, Highest Since 1981\">higher transportation costs<\/a> and inflated prices for everyday goods. They argue those costs are especially hitting the trucking industry, where rising commercial insurance premiums can ripple through freight rates, grocery bills, consumer goods and even personal auto insurance premiums.<\/p>\n<p>\u201cAbusive litigation practices against the trucking industry are driving up costs for consumers, destroying small businesses, and undermining public safety.\u201d Henry Hanscom, American Trucking Association\u2019s (ATA) chief advocacy &#038; public affairs officer, told the DCNF.<\/p>\n<p>The number of filed cases involving tractor-trailers has increased at an annual rate of 3.7% between 2014 and 2023, according to a <a href=\"https:\/\/truckingresearch.org\/2025\/12\/new-atri-research-expands-insights-on-the-scale-and-causes-of-growing-trucking-litigation\/\">study<\/a> by the American Transportation Research Institute. This comes as the personal injury market size rose 2.5% CAGR between 2020 and 2025, <a href=\"https:\/\/www.ibisworld.com\/united-states\/market-size\/personal-injury-lawyers-attorneys\/4812\/\">according<\/a> to IBIS World.<\/p>\n<p>Auto insurance premiums have been rising since February 2020, and insurance premiums have <a href=\"https:\/\/www.npr.org\/2025\/10\/30\/nx-s1-5542448\/car-insurance-rising-premiums\" target=\"_blank\" rel=\"noopener noreferrer\">soared<\/a> by 55%, according to NPR.<\/p>\n<p>The Surface Transportation Reauthorization Act is set to expire in September and is considered must-pass legislation, as it sets federal transportation funding and policy. ATA supports including several lawsuit-abuse measures in the package or another legislative route, though it remains unclear if lawmakers will include those reforms in the final bill.<\/p>\n<p>ATA Chairman Greg Hodgen and a group of trucking industry members met with both the House and Senate Judiciary Committees in April to discuss lawsuit abuse targeting the industry, including staged accidents, forum shopping, third-party litigation funding and frivolous lawsuits, Hanscom told the DCNF.<\/p>\n<p>After hearing about the surge in staged crashes and the roughly $4,200 a year it adds to the average family\u2019s costs, House Judiciary Committee Chairman Jim Jordan said he wants to take a closer look at it.<\/p>\n<p>A spokesperson from Jordan\u2019s office confirmed to the DCNF that the Representative\u2019s office is \u201clooking into it.\u201d<\/p>\n<p>In October 2025, Georgia Republican Rep. Mike Collins introduced the <a href=\"https:\/\/www.congress.gov\/bill\/119th-congress\/house-bill\/5258\" target=\"_blank\" rel=\"noopener noreferrer\">Lawsuit Abuse Reduction Act of 2025<\/a>, which aims to reduce frivolous suits in federal courts by imposing mandatory sanctions on attorneys who file them. It ends the 21-day \u201csafe harbor\u201d rule that allows attorneys to withdraw frivolous filings in that timeframe without consequences.<\/p>\n<p>The bill has gained <a href=\"https:\/\/instituteforlegalreform.com\/blog\/lawsuit-abuse-reduction-act\/\" target=\"_blank\" rel=\"noopener noreferrer\">support<\/a> from the U.S. Chamber of Commerce and is pending before the House Judiciary Committee.<\/p>\n<p>A similar version of the legislation was introduced in 2017, but it ended up dying in the Senate Judiciary Committee after passing the House.<\/p>\n<p>The bill faced strong opposition from the American Bar Association (ABA) and the American Association for Justice (AAJ), where the two spent over $7 million lobbying in 2017, according to Open Secrets.<\/p>\n<p>In September 2025, Congress introduced the <a href=\"https:\/\/www.congress.gov\/bill\/119th-congress\/house-bill\/5268\" target=\"_blank\" rel=\"noopener noreferrer\">FAIR Trucking Act<\/a>, legislation that seeks to curb \u201cnuclear verdicts\u201d against the trucking industry. Nuclear verdicts are high jury awards in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/from-michael-brown-to-makhia-bryant-meet-the-lawyer-whose-false-claims-fueled-a-generation-of-black-lives-matter-violence\/\" title=\"From Michael Brown To Ma\u2019Khia Bryant: Meet The Lawyer Whose False Claims Fueled A Generation Of Black Lives Matter Violence\">personal injury cases<\/a> that can exceed $10 million, and can lead to bankruptcy for freight carriers. Nearly 80% of trucking-related verdicts exceed $1 million, according to an American Transportation Research Institute (ATRI) <a href=\"https:\/\/truckingresearch.org\/wp-content\/uploads\/2025\/12\/ATRI-Trucking-Litigation-A-Forensic-Analysis-12-2025.pdf?utm_source=release_download&#038;utm_medium=&#038;utm_campaign=track&#038;utm_content=download\" target=\"_blank\" rel=\"noopener noreferrer\">report<\/a>.<\/p>\n<p>Since the introduction of the FAIR Trucking Act, the AAJ has lobbied heavily against the measure, according to lobbying <a href=\"https:\/\/disclosurespreview.house.gov\/ld\/ldxmlrelease\/2025\/Q4\/301833200.xml\" target=\"_blank\" rel=\"noopener noreferrer\">reports<\/a> obtained by the DCNF.<\/p>\n<p>\u201cThe insurance industry raked in $169 billion in profits in 2024 while denying Americans\u2019 claims after catastrophic events and jacking up rates for policyholders year after year,\u201d AAJ spokesperson Heather Sager told the DCNF. \u201cSo, it\u2019s no surprise they\u2019re trying to point the finger at anyone willing to hold them to account.\u201d<\/p>\n<p>\u201cThis is a tale as old as time \u2014 for decades, corporations who can\u2019t justify their treatment of American consumers attempt to blame those holding them accountable while pushing legislation that would shield them from accountability,\u201d Sager added.<\/p>\n<p>The risk of litigation is negatively affecting freight industry insurance, where settlements frequently reach millions of dollars. In 2025, some trucking companies experienced premium increases of 20-30% in just one year,<span class=\"gmail-Apple-converted-space\"> <\/span><a href=\"https:\/\/www.freightwaves.com\/news\/how-to-save-on-commercial-truck-insurance-in-2025-without-cutting-corners\">according<\/a><span class=\"gmail-Apple-converted-space\"> <\/span>to FreightWaves.<\/p>\n<p>On Thursday, the Supreme Court declined to limit freight broker liability in the <a href=\"https:\/\/www.supremecourt.gov\/opinions\/25pdf\/24-1238_1b7d.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Montgomery v. Caribe Transport<\/a> case, which addressed whether freight brokers can be sued under state law for hiring unsafe motor carriers, leaving business groups warning that shipping companies could face a patchwork of state liability rules.<\/p>\n<p>\u201cWithout a uniform standard, every small business who uses a trucking company will be hit with higher costs and reduced availability as the resulting patchwork of rules and risk ricochets through the supply chain,\u201d Beth Milito, vice president and executive director of NFIB\u2019s Small Business Legal Center, <a href=\"https:\/\/www.nfib.com\/news\/press-release\/supreme-court-declines-to-protect-shipping-industry\/\" target=\"_blank\" rel=\"noopener noreferrer\">said<\/a> in a press release following the decision.<\/p>\n<p>The ruling leaves freight brokers facing state-by-state liability risks that could drive up insurance and shipping costs across the supply chain.<\/p>\n<p>Hanscom said rising litigation costs have driven up commercial auto insurance premiums across the trucking industry, with liability insurance premiums increasing 18.6% between 2021 and 2024, \u201coutpacing consumer inflation,\u201d even as heavy-duty truck crash rates declined by as much as 3.1%.<\/p>\n<p>\u201cThese soaring insurance costs year-over-year are putting enormous financial strain on trucking companies at a time when the industry is grappling with a prolonged freight recession,\u201d he said. \u201cIt\u2019s pushing many motor carriers to the brink.\u201d<\/p>\n<p>The trucking industry moves roughly 70% of U.S. goods, meaning higher freight insurance costs can spill over to consumers. Over the next decade, litigation is expected to contribute 15% of the inflation in food costs, according to the U.S. Chamber of Commerce Institute for Legal Reform.<\/p>\n<div>\n<p>The proposals include legislation that seeks to <a href=\"https:\/\/amzn.to\/3YuVZYV\" >target staged highway accidents involving commercial trucks<\/a>, forum shopping, frivolous lawsuits and third-party litigation funding.<\/p>\n<\/p><\/div>\n<p>The AAJ, the largest trial bar association, acting as the leading advocacy and lobbying organization for plaintiffs\u2019 attorneys, stated that insurance companies and corporations are attempting to shift the blame for rising premium costs.<\/p>\n<p>\u201cLawsuit abuse against the trucking industry hits consumers in two ways,\u201d Hanscom told the DCNF. \u201cSince virtually every good travels on the back of a truck at one point in time, increases in freight transportation costs are reflected in the cost of goods.\u201d<\/p>\n<p>Hanscom added that rising premiums in the commercial auto sector also \u201cput upward pressure on the consumer auto insurance market.\u201d<\/p>\n<p>In 2023, Republican Florida Gov. Ron DeSantis signed <a href=\"https:\/\/www.flsenate.gov\/Session\/Bill\/2023\/837\" target=\"_blank\" rel=\"noopener noreferrer\">HB 837<\/a> into law, aiming to reduce frivolous lawsuits and insurance litigation by altering negligence standards, all in an attempt to combat high premiums.<\/p>\n<p>The effects of the reform were felt rapidly, as the top five auto insurance groups saw an average rate decrease of 6.5%, <a href=\"https:\/\/floir.gov\/home\/2025\/07\/29\/florida-office-of-insurance-regulation-announces-lower-auto-insurance-rates-thanks-to-florida's-insurance-reforms\" target=\"_blank\" rel=\"noopener noreferrer\">according<\/a> to the Florida Office of Insurance Regulation.<\/p>\n<p>As insurance premiums skyrocket nationwide, states are now signaling similar reforms to tort laws, including New York, where insurance rates rank among the fourth-highest in the nation.<\/p>\n<p>\u201cYou can have a situation where someone causes the accident intentionally and gets a huge personal injury payout. So we\u2019re putting the brakes on that fraud. Enough is enough here in the State of New York,\u201d Democratic New York Gov. Kathy Hochul said in a <a href=\"https:\/\/www.governor.ny.gov\/news\/video-audio-photos-rush-transcript-governor-hochul-highlights-her-car-insurance-affordability\" target=\"_blank\" rel=\"noopener noreferrer\">statement<\/a> released in February.<\/p>\n<p>\u201cWe\u2019ll start by reforming our tort laws to protect people who play by the rules and insulate the personal injury system from abuse,\u201d Hochul added.<\/p>\n<div class=\"disclaimer\">\n<p>All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter\u2019s byline and their DCNF affiliation. 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