Personal injury claims skyrocketed because of the increasing involvement of lawyers even if auto accident rates declined as reported by an insurance research group. Here, they’re not getting the safety dividend because the changes in claim behavior are gobbling up the savings even if they are seeing real improvements in car safety and a reduction in actual auto accidents as said by the executive director of this non-profit group.
It was he who released a study showing that the number of personal injury claims has increased dramatically in the states of Louisiana, California, South Carolina, Arizona, and in certain urban areas most notably in Chicago, Los Angeles, and Philadelphia. They see a lot of claim files and the most frequent occurrence of serious injuries happen in states and cities with high injury claim frequencies.
These are the cases which account for nearly half of all the auto insurance dollars paid for highway injuries since people have attorneys today and they report neck and back sprains almost always. According to him, this is a possible conclusion considering how no rational explanation exists for the question of whether or not the nature of the injuries which are the easiest to simulate indicates an increase in exaggerated or fake claims.
When it comes to this, he came to the conclusion that either people in California are extremely sensitive or that they’re making claims people don’t make in other places. Nationwide, there has been a 30 percent increase in the ratio of injury claims to property damage claims based from the study called Trends in Auto Bodily Injury Claims. California, which has more lawyers than any other state, in fact, more than any country outside the United States, had the highest injury against property damage claim ratio.
This is followed by Arizona which comes in second and then Louisiana and South Carolina. It was during 1985 to 1987 when Philadelphia had the highest ratio with an average of 75 injury claims awarded per 100 property damage accidents. Coming in second was Los Angeles at 60.6 and Chicago was next with 52.1.
As you can see, you can associate areas which have consumer activism and moves to limit insurance rates to those which realize increasing personal injury claims. Currently, there are moves to legislate auto insurance limits in all California, Louisiana, South Carolina, and Arizona. Due to these excessive claims, their insurance rates are inflating.
It is easy to build up claims and all the lawyers need to do is send clients to doctors and chiropractors. When it comes to this, the lawyer tries to build up a claim even if the client did not intend on faking a claim. To check if they are OK, they will be sent by the lawyer to doctors and chiropractors. Trying to create a medical record is what the lawyer does.
With lawyer involvement, medical expenses for claims average about $5,000 higher than those settled without lawyers. Usually, claims are built up by lawyers because every $1 in actual medical expenses can get the claimant another $2 in pain and suffering.
Based from an earlier study by the Insurance Research Council, the number of cases which involved lawyers have increased 42 percent. Leading to the proliferation of lawyer involvement in personal injury cases, he noted a 1977 Supreme Court decision that barred restrictions when it comes to advertising by lawyers.