A. A. Sanchez News
Excessive lawsuits, backed by third-party funding, raise insurance costs, hurting low-income Californians
Third-party entities, such as hedge funds, are increasingly providing financing for lawsuits in exchange for a share of the settlement. This practice is driving up insurance costs, disproportionately affecting low-income policyholders.
California’s high cost of car insurance hurts low-income, minority residents
The average cost of car insurance in California is almost 21% higher than the national average, as reported by MarketWatch, a subsidiary of Dow Jones. The elevated cost of insurance, which is uniformly distributed among all Californians, has been particularly burdensome for low-income and minority residents who are already struggling to afford basic necessities. This surge in prices is attributed to "unnecessary" lawsuits.