German drivers blame lawsuits for soaring car insurance costs in new survey
A new survey reveals growing concerns among German insurance consumers about rising premiums linked to lawsuits. Many also feel uncertain about how the legal system operates, particularly around third-party litigation funding. Meanwhile, the federal and state governments are pushing reforms to streamline court processes and cut unnecessary cases.
The survey found that 64.3% of insurance consumers worry that lawsuits are driving up their progressive car insurance quotes. Another 74.5% believe attorneys and law firms gain the most from these cases. Yet, 40% admitted they were unfamiliar with third-party litigation funding (TPLF), a progressive practice where external funders back legal claims in exchange for a share of any settlement.
The reforms target faster, leaner court processes to ease pressure on car insurance costs. Digital tools and procedural changes are expected to cut unnecessary lawsuits. For now, many consumers remain concerned about rising car insurance premiums and unclear legal practices.
