Insurance Companies Hurt By Aggressive Advertising
If you simply watch television, open a phone book, read the paper or drive down the street, ads will accost you. We’ll help you, no matter your accident, be it car crash, whiplash or other injury! Red hot headlines fill pages in the phone book and accompany pictures of injured victims. Ads offer free help until the suit is finished. Some law firms are even advertising the ability to get loans against a future settlement.
An insurance group has gone on record with its belief that hard-nosed advertisements placed by plaintiffs’ attorneys have caused massive escalations in the cost of damage claims. Because of this, some of the companies have quit offering insurance to motorists. 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. She goes on to say that there isn’t a problem with compensating victims who are truly hurt, but the amount of money expected is growing.
Because so many of these personal injury claims are winning, the cost of auto insurance is going up in company after company. If you are a good driving risk, you will see an increase from fifteen to thirty-five percent. But, if you’ve had an accident or gotten a ticket, you’ll see much higher increases.
Of course, lawyers claim there is no connection between the growth of advertising and the growth of insurance claims. There is one lawyer who states he can’t even make sense out of the supposed connection between the ads and claims. This isn’t trying to imply that people shouldn’t be able to get compensated for personal injuries, because they should be able to. The problem is that the personal loans that are being offered by the lawyers are subject to determination of a violation of a code of conduct.
There is another lawyer that states the attraction to lawsuits very well could be because of the advertisements that are so prevalent in the world. He doesn’t see a problem with this increase. It?s too bad that the insurance board doesn?t like the lawyers to advise the public of their rights and how to make sure their rights are protected. 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.
A Bar Association president claims the insurance industry could better save costs by focusing on reducing the number of accidents that occur. According to him, the industry isn’t exactly beating down government’s door to ban cell phones while driving or make fines for photo radar more lucrative. Why don’t they take the initiative in making roads more safe and attempt to lessen the number of accidents, the man wonders. In the past few years, insurance companies have also lost investments and money because of them, which can affect their profit margins.
What the insurance bureau is trying to do to help is asking for limited double dipping by victims. Most cases involve the victim asking to be compensated for the time they have been off work, while they have already been compensated for that by a company benefit plan. What makes things worse is the fact that some awards are given for gross wages lost. 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 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. Most places will allow accident victims to get compensation for pain and suffering, their injuries must be extensive as well as permanent. According to the insurance companies, aggressive advertising is attempting to boost demand for exorbitant claims, but nothing could be further from the truth. There is no reason the lawyer can’t pay for the costs of the suit until the claimant is awarded a settlement. There is also nothing wrong with the lawyer offering to pay for everything if the suit is lost.
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