Insurance Costs Go Up As More Personal Injury Claims Are Filed
Although there are lower accident numbers recorded every single year, the number of people that were injured in vehicle accidents and that look for financial compensation is constantly rising. Claims are now fueling much dearer insurance premiums with many in the industry now expecting an increase of around 40% in the following year.
According to the best accident lawyer we should see an increase in claims in the future simply because people are now starting to be aware of the rights they have according to law while others simply say that the reason for the increase in the claims is that fraud is done. No matter the case, the insurance industry is working hard now to tackle fraud and deal with a problem that is clearly escalating.
The big problem seems to be various associated referral payments that follow the car crash. An accident management company is usually tipped off by a garage, take the case and then bill the insurance company for various expenses including doctor fees, car hire and compensation. We are actually faced with an inflated total cost because of the actions of these accident management companies so insurance companies have to react and change fees.
Bodily injury claims are bringing in increased costs that are much higher than in the past. This is seen as the biggest factor why insurance premiums are going up. Around 20 years ago the injury claims made out around 20% of the insurance claims costs. Just 5 years go the proportion was closer to 50%. It is interesting to note that the premiums that end up being paid remain at the same high amounts even if the number of people that end up with an injury in a car accident is lower. This can only indicate that fraud is present.
There is a correlation that becomes visible between bodily injury claims and the frequency at which the above mentioned companies get involved. We are looking at the real mystery of having fewer road accidents and an increase in the number of people that make claims for injuries happening during car crashes.
Local investigations found evidence of people leaving garages and then receiving text messages about being in an accident or not. According to the Daily Telegraph, there was a company that paid 500 pounds for the road accident claimants besides the compensation that would be received, thus engaging in fraudulent practices.
The bottom line is that insurance companies need to protect themselves. Because of this they need to raise insurance premiums. This is done as new departments are set up in order to check the claims.
Unfortunately, this hurts everyone, including people that are genuinely injured and that would benefit from a faster claims process. Insurance companies end up having to check everything so the entire process is so much slower than it could be. Both law enforcement and insurance companies work hard now to come up with a solution to dealing with the fraudulent claims attempts.