The Ease Of Filing Lawsuits Contributes To Rising Insurance Costs

Advertisements will leap out at you whether you are driving past a billboard, looking in the phone book or newspaper, or even when you are watching your television. We can assist you whether you have been in a car crash, experienced whiplash, or injured in an accident. Over and over you will see advertisements that show people who are injured and their lawyers offering to give you the best service for absolutely free until a claim is made. Certain promotions actually boast the ability to provide financial advances against potential damage awards or settlements.

The insurance industry is claiming that the lawyers’ aggressive advertisements are bringing in more and more personal injury lawsuits. Because so many of these suits are taking place, some companies have decided to nix their auto insurance coverage. The bureau’s regional services manager claims that he is noticing only small amounts of damage in accidents and people trying to get large awards, and at times actually getting the large awards. The insurance group representative stated that the industry has no problem paying awards when true injuries occur, though it does become problematic when plaintiffs make exorbitant monetary demands.

The actual amount that claims are increasing auto insurance premiums is different for each company. Good driving risks will only see an increase of fifteen to thirty-five percent. But, if you’ve had an accident or gotten a ticket, you’ll see much higher increases.

Lawyers dispute the fact that their ads and claim cost increases are related. There is one lawyer who states he can’t even make sense out of the supposed connection between the ads and claims. When someone has a good claim to make against another driver, they should be allowed to do so. The offer of short-term loans on the promise of future claims may be a violation of the lawyers? code of ethics. Law associations are researching this.

One lawyer agrees that there is a proliferation of advertising by personal injury lawyers and that this may actually increase the number of claims filed. He doesn’t see a problem with this increase. It’s unfortunate that the insurance bureau finds the fact that lawyers are telling people about their rights and how to go about asserting those rights. He does see the increase in insurance company costs and admits the system could be improved, but he notes the fact that insurance companies are not willing to work with association to make those changes.

Of course, the president of the bar association states that the insurance companies are trying to place the blame on someone for raising their premiums, and are looking for a way to bring their compensation costs down, as opposed to figuring out a way to prevent the accidents. There isn’t any lobbying by insurance for increased fines for photo radar or bans on cell phone use by drivers, he said. He goes on to say that there is a question of why insurance companies aren’t trying to increase roadway safety and aren’t trying to come up with ways to decrease accidents. He says that the investments the insurance industry has made have taken the brunt of the force, as well as the profits they have made.

Legislation has been introduced to stop injured motorists from “double dipping.” Cases have been seen when claimants want to be compensated for lost work time, but their own companies have already compensated for this. The worst part is that the claimants would receive their gross wages. Absolutely no deductions have been taken. This doesn?t create a situation where the employee would want to get back to work. Higher compensation is paid the longer you are off work.

The lawyers don’t have current numbers on how many injury accident lawyers are currently practicing, but they agree there are few places that let so many lawsuits be filed. Motorists can usually sue for pain and suffering, but in some locales, the injuries have to be of a very serious nature and permanent. It may look like the advertising has increased the claims being made, but it is just the opposite. After all, it is well within a lawyer’s right to hold off on payment until a settlement is one. It is also acceptable to absorb the costs of litigation if a client should lose.

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