The Big Backfire — Attorney Lawsuit Billboards

We’re all seen them along streets and highways. The billboard has a smiling attorney, or attorneys, often bedecked in expensive suits, asking us if we’ve been wronged by a company, a person or both.

While the attorneys think the billboards help their business, the people looking at them aren’t viewing them in a positive light. Or so says research done by the Insurance Research Council (IRC).

It’s a division of The Institutes (formerly the I.I.I.).

IRC President Dale Porfilio says most Americans see this advertising as leading to court clogging liability lawsuits and over half see them as raising the cost of insurance.

“The public sees a connection between attorney ads and the cost of insurance. Two-thirds of respondents who had an opinion said advertising by attorneys increases the number of liability claims and lawsuits,” Porfilio said. “Fifty-nine percent said such advertising increases the cost of insurance.”

If you’re curious and want to see the report, it is called, Public Attitudes on Litigation Trends and the Role of Attorneys in Auto Insurance Claims. It notes that many of attorney firms use funds from outside investors to finance lawsuits. It’s called litigation funding.

While 81% of us have seen attorney advertisements, 39% were surprised and have never heard of litigation funding for lawsuits.

Here’s more from the survey of the 1,500 people polled.

• *Almost everyone surveyed expect an insurer to settle a claim fairly and quickly
• *Just 24% say they’d hire an attorney before contacting an insurer for claims settlement
• *Most Americans think there are too many personal injury lawsuits today
• *Younger Americans are more likely than older Americans to view attorney involvement favorably

“This survey builds on many years of IRC work examining the role of attorneys in insurance claims and the resulting consequences,” Porfilio said. “Our longstanding series of closed auto injury claim studies has shown an ever-increasing rate of attorney involvement, even among no-fault claims.”

However, Portfilio did note that most people that hired an attorney waited longer than average to get a settlement from an insurer. That said, most going that route did not fare as well as those that didn’t.

“The average auto injury claim payment, adjusted for the medical expenses owed and any applicable legal fees, was lower among claimants who hired attorneys compared with claimants who did not,” he added. “Given the costs added to the system and the lack of evidence of clear benefit for the claimant, it is important to understand public attitudes about attorney involvement.”

Source link: Insurance Research Council — https://bit.ly/3AqYYWE