The Rise of Attorney-Represented Insurance Claims
With budget cuts at the forefront and traffic fatalities on the rise, overburdened law enforcement departments in some areas have elected to limit the type of auto accident to which they will respond. This disturbing trend has given rise to unanticipated concerns. One in particular could adversely affect all drivers who carry insurance.
When Lack of Trauma Equals Lack of Response
In southern Nevada and states across the country, the police will no longer attend your traffic mishap unless it involves:
- An injury or mortality.
- An unlicensed or legally impaired driver.
- An unregistered or uninsured vehicle.
- A car abandoned by the road following an accident.
- A driver who causes an altercation or refuses to exchange information.
- Something more serious than property damage.
This lack of police response provides a fertile feeding ground for attorneys who are all too happy to fill the void. With little hesitation, they will come to the accident scene. They will take pictures and interview witnesses. Then, of course, they will offer to help you file your insurance claim.
Why This Makes a Difference
On its face, the practice seems innocuous enough. Indeed, the driver who feels abandoned by law enforcement will likely be grateful for any sort of assistance. Unfortunately, the picture has a darker aspect. This consists of a rise in attorney-represented insurance claims and consequent side effects that eventually influence everyone who carries insurance.
No Police Report Needed
Contrary to popular belief, insurance companies do not require that you file a police report before making a claim. Unfortunately, the lack of such documentation removes from the picture the impartial third party that traditionally served as a trustworthy arbiter of fault. This puts insurance companies in the onerous and expensive position of determining accountability themselves. They subsequently find themselves forced to pass these extra costs onto their policyholders in the form of increased premiums.
Drivers with unblemished records may feel the greatest financial pinch. With no official documentation to separate good drivers from bad, insurance companies will have no choice but to lump them all together. As a result, premiums will rise for all.
An Overburdened Judicial System
Insurance companies are not the only entities to suffer. When increasing numbers of these lawsuits jam overextended court calendars, judicial systems hurt as well. Cases of far more serious importance could thereby face interminable delays.
An Old But Increasing Problem
Although the figures vary by state, the number of attorney-represented personal injury claims continues to follow an upward trajectory. By the year 2012, the percentage of such petitions had risen to 36 from a previous high of 31 in 2007. According to the Insurance Research Council, the rates have doubled since 1977.
When No-Fault Becomes Adversarial
Too often, the involvement of lawyers in auto accident cases has turned what should have been a simple process of no-fault adjudication into a logistical nightmare. In addition to obstructing the settlement process, the confrontational aspect delays insurance payments and raises rates for everyone.
Illusory Benefits
While the IRC analysis did find that auto accident claimants who received legal representation were more likely to profit from diagnostic testing and treatment for pain, this may have been the only advantage. After subtracting legal fees and other associated expenses, these petitioners not only averaged lower net payments but also found themselves waiting far longer to get them. In addition, applicants who sought legal assistance were among the more likely to participate in alleged claim abuses.
How You Can Protect Yourself
When you find yourself involved in a minor accident, you can often save yourself time and trouble by declining legal assistance. Instead, take steps to document the scene yourself. Start by writing down the driver’s identifying information along with his license plate number and the type of vehicle he was driving. Then, take as many pictures of the accident scene as you can. Modern cell phones make this easy, and your shots will give the insurance adjuster a head start in determining cause.
The lack of police presence at minor road accidents may seem like a headache for some. Just remember that when legal assistance knocks at your door, the help it seems to promise may be an illusion. If you choose to accept it, you could cause pain for drivers in general somewhere down the road.