Insurance Company Has Issues Because More Compensations Is Given Out Because Claims Have Increased

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. “Have you been injured in an automobile accident? We can help!” Reams of advertisements fill the telephone directory with vivid script, images of the injured, and promises of service at no fee until damages are won. There are even those who are offering a loan to you that you can pay back when you receive the settlement.

An insurance bureau is claiming that such advertising, made by personal injury lawyers, is driving up claim cost. As a matter of fact, some insurance companies will no longer sell auto insurance. 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. The insurance company supports paying people for their actually injuries, but she says the claimants expect a lot more money than they really deserve.

The claim amounts are causing auto insurance premiums to be raised, but the amount is different with each company. Even if you’re a good driver, the average increases range from 15 to 35 percent across the board. However, if you have a ticket or accident in your past, your premiums will have a much larger percentage of increase.

Lawyers say there’s no link between their advertising and the increase in claim costs. The number of advertisements and the number of claims has been connected by the insurance bureau. One lawyer says he just doesn?t understand this link. When someone has a good claim to make against another driver, they should be allowed to do so. Lawyers associations are looking into the short-term loans being offered claimants. These may be a violation of their code of conduct.

On the other hand, there are lawyers who say that personal injury lawyers are definitely wanting to increase the number of claims through hostile advertising. However, he doesn’t see the issue inherent in that strategy. It is too bad that the the insurance bureau just assumes it is negative for lawyers to let people know their rights, and that people then act on those rights. He sees that insurance companies face higher costs, and that the entire system should be reworked. He also notes that the insurance company has refused to work with his association to make cost-saving alterations.

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.

Insurance company advocates are lobbying for the passage of laws meant to prevent those injured in car accidents from obtaining multiple recoveries for the same incident. Certain claimants seek awards for lost wages in situations where they have already received compensation under their existing employee benefit coverage. Another bad thing about this is that the people receive gross wages, not wages that have been taxed. This makes it harder for the employee to want to go back to work. You are able to make more money for the longer amount of time that you take off work.

The number of personal injury lawyers is unknown and many lawyers don’t think that places for these lawsuits has increased. Most places will allow accident victims to get compensation for pain and suffering, their injuries must be extensive as well as permanent. It may look like the advertising has increased the claims being made, but it is just the opposite. In the case of lawyers paying for the lawsuit costs until their client gets paid, it’s perfectly legitimate, as is paying for the court costs if they lose the case.

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