Nuclear Verdicts—Are Changing Auto Insurance: Here’s What You Need to Know
By Sam Hanmer, Rush Insurance Group, Inc.
Published in Longmeadow Neighbors (June 2025)
If your auto insurance premium feels higher than ever, you’re not imagining it—and it’s not just inflation. Across the country, insurance costs are rising because of a trend called nuclear verdicts: extremely large jury awards, often over$10 million, even for accidents or claims that used to settle for much less.
HERE’S HOW IT WORKS:
In the past, most auto accident claims—even serious ones—settled for amounts based on medical bills, lost wages, and reasonable pain and suffering. Today, a growing number of jury trials are delivering verdicts many times higher than that, driven by emotional appeals, changing public attitudes, and a lot more financial backing behind lawsuits.
In fact, private equity firms are now funding plaintiff lawyers, giving them the resources to push for bigger settlements and to take more cases to trial. These investors aren’t paying out of generosity—they’re getting a slice of any big win. And the bigger the verdict, the bigger the payday.
WHAT DOES THIS MEAN FOR YOU?
Insurance companies, facing the risk of multimillion-dollar payouts even on routine accidents, have to spread those costs across all policyholders. That’s why auto insurance premiums are climbing—even if you have a clean driving record and haven’t filed a claim. Homeowners and umbrella insurance rates are feeling pressure too, especially in areas where lawsuit activity is high.
EXPERT CONTRIBUTOR
Sam Hanmer
HOME & AUTO INSURANCE
Rush Insurance
413-532-3291
rush-insurance.com
shanmer@rush-insurance.com
WHAT CAN YOU DO?
Review your coverage: Make sure your liability limits are high enough to protect you if you’re ever sued after an accident. (Many experts recommend at least $ 250,000 to $ 500,000 limits—and an umbrella policy for extra protection.)
Ask about discounts: Many insurers offer discounts for safe drivers, bundled policies, low mileage, and more.
Work with a knowledgeable agent: A good advisor can help you find the right coverage at the best value—and explain how your specific risk factors (location, driving history, vehicle type) affect your premiums.
The legal system is changing fast—and it’s affecting everyone on the road. Understanding why your costs are rising is the first step to protecting yourself better and making smart insurance choices.
Need help reviewing your coverage? Reach out to us today—we’re here to make sure you’re protected against today’s risks.
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