Lawyers Vs. Insurance Business: Business Is Abused
You can see advertisements everywhere you look
, from phone books to billboards to even the televisions and newspapers. Did you get hurt in an accident or have a car crash?Do you have whiplash? We can help! Phone books are littered with headlines and bold print, as well as horrific images of car crash victims, along with an advertisement for free services until you get a claim.
Some law firms are even advertising the ability to get loans against a future settlement.
An insurance bureau says this strong advertising campaign created by personal injury lawyers is one of the factors contributing to the rise of claim costs.
This is result in some motorists not even getting coverage due to the increases.
Though the vehicles may be very minimally damaged, people are claiming huge amounts of injuries, and sometimes being awarded those, according to the bureau's regional services manager.
While insurance companies are more than happy to pay for real injuries, they feel that they are getting ripped off due to the number of large claims.
Depending on the insurance company in question, insurance premiums are rising to new heights. Anywhere from 15% to 35% can be felt in even the most conservative premium rate increases, all due to people abusing the system.
Those are mild estimates, which are definitely not true for those who have had highway traffic offenses in the past.
The increase in claims costs being connected with the lawyers advertising is being disputed by the personal injury lawyers.
According to one lawyer, the connection between the increase in claims made and advertising by lawyers makes no sense.
When someone has a good claim to make against another driver, they should be allowed to do so. The one thing that is questionable is whether or not giving out loans to the claimants is a violation of code of conduct.
By advertising personal injury services, law firms will get business from those already considering a claim. This is one personal injury lawyer's opinion.
But he doesn't see why there is a problem with this. To me, the troubling thing is the insurance industry group's implication that it is somehow improper for attorneys to inform injured people about their rights to damages and to help them assert those rights.
The attorney acknowledges the increase in cost to the insurance carriers, and does not dispute the notion that reform might be useful, but states also that the industry group has refused to collaborate with attorneys to solve problems.
A statement made by the president of the bar association says that insurance companies should be more worried about accident prevention rather than reducing claim costs.
The industry lobbying government to raise fines for photo radar or bans on cell phone use while driving, is not being heard of by him.
Also, he is curious was to why the insurance companies aren't lobbying for better road safety and more legislation to prevent accidents instead of pestering lawyers. Profits have been cut and investments have not paid off for insurance lately, he notes.
Insurance is lobbying hard for legislation that would stop 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.
What's more, the time lost pay doesn't take out income tax or deductions.
This ends up making not going back to work a more attractive option. You'll make more money if you are out of work for a longer time.
Attorneys suggest that they are unaware as to the exact size of the plaintiffs' tort bar, though they are pretty certain that there are not many more venues in which they could find new opportunities.
There is also the option for motorists to sue for pain and suffering, but there are some places that make sure the injury is permanent before they will award this.
The insurance industry group is attempting to promote the narrative that advertisements are what is causing the upswing in lawsuits, though the reverse is true.
Lawyers should be allowed to work for free for claimants until the case is settled; they should also be allowed to offer to pay for any disbursements if the case is lost.
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