Public Perceptions of the Effects of Litigation on Auto Insurance Claims, IRC Study

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The majority of Americans feel that attorney advertising increases the number of litigation and liability insurance claims, according to a new study from the Insurance Research Council.

A recent study from the IRC supports this.

According to the poll, consumers also see a connection between insurance costs and attorney advertising.

 

Despite the fact that consumers are more aware of third-party lawsuit funding, according to the IRC and Triple-I (a subsidiary of The Institutes), many Americans still have concerns about the practice.

Third parties assume all or a portion of the litigation expenses in exchange for a cut of the settlement.

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This phenomenon is called “social inflation.”

Many Americans are still perplexed by this behavior, though.

  • Dale Porfilio, president and chief executive officer of Triple-I, said that the public is aware of the link between attorney marketing and insurance costs.
  • According to two-thirds of those polled, lawyer advertising makes lawsuits and liability claim more likely.
  • 59 percent of respondents claimed that this type of advertising drives up insurance costs.
  • According to a poll, 81% of Americans have seen an advertisement for an attorney in the last 12 months.
  • The phrase “litigation funding” was unfamiliar to three-quarters of the survey participants.
  • Over 1,500 people were polled online as part of the IRC study Public perceptions on litigation trends and the role of attorneys in auto insurance claims.
  • Furthermore, it showed that
  • Despite the fact that consumers expect their insurers to handle vehicle insurance claims swiftly and fairly, 1 in 4 respondents said they would rather hire a lawyer than speak with their insurer.

 

  • Many customers are not persuaded that it is a good idea to get legal counsel to help them with their insurance claims.

These opinions are validated by claims-based research evidence.

 

  • There are huge age divides when it comes to these issues, and the majority of Americans believe there are too many personal injury claims.

In comparison to older respondents, younger respondents are more likely to embrace legal engagement and litigation.

 

  • Those who seek to lower insurance expenses have access to some educational possibilities.

 

The survey, according to Porfilio, is based on years of IRC research on the function of lawyers and the effects of insurance claims.

Even in no-fault situations, the number of attorneys involved is rising, according to our vast series of closed auto-injury claim studies.

 

Porfilio emphasized that studies have repeatedly demonstrated that claimants who hired attorneys endured lengthier wait times for settlements and that those compensations were smaller after taking into account medical costs.

 

A lawyer’s involvement, according to Porfilio, is crucial due to the increased costs and paucity of supporting data for claims.

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