Trial Lawyer v. Insurance Company
Every time I address the issue with my insurance friends, trial lawyers are painted as money hungry individuals. They are called every name in the book, but perhaps the most used one is the “ambulance chaser.” When I hang out with the trial lawyers and personal injury attorneys, most of them are completely in the opposite side. They hate insurance adjusters and blame them of trying to take advantage of injured victims by offering low settlements because they want to advance their careers.
Both sides make serious accusations and both have very good points. Many injury attorneys are sleaze and their TV commercial confirm the accusations. These attorneys seemed to be more worried about getting clients than protecting their reputation. Not every injury attorney TV commercial is cheesy, but many of them are.
Now, insurance companies handle claims in such a way that the consumer ends up having to seek legal help. Many consumers try to find ways of settling their claims by finding relevant information. They look at eBooks that help them settle their injury claims and the total loss of their cars. However, the great majority of people that cannot get the answer they believe they should get from their insurance company end up having to consult with an attorney.
Consumers argue that they pay a premium to get a service. They are paying very high insurance bills to have insurance companies be there and help them out when they need it most: paying for medical bills and getting their vehicle back on the road so they can get back to work.
However, most insurance companies are failing by providing a substandard service. Check out this survey result regarding auto insurance rankings, where most insurance companies are getting a failing grade when it comes to paying claims on time, contact their insureds within a reasonable time, and getting vehicles fixed to the satisfaction of those paying premium.
When I worked as an insurance adjuster, I was able to settle many claims in a short amount of time. There was always a lot of pressure. The insurance company did not allow me to get a “bonus” for settling claims below the “injury reserve” that was already set.
However, I had “LEO” to worry about. LEO is the “Loss Economic Opportunity.” This is what I should have settled claims for but did not. In other words, if I settled a claim for $10,000, but LEO says that this claim should have been settled for $8,000, then my LEO score would be a 20%. This would virtually leave me without a bonus, and definitely without the possibility of getting a raise.
If the adjusters LEO scores were consistently higher than their peers, then their job is usually in jeopardy. This is the way insurance companies motive adjusters to settle claims for less than they should. The adjuster has a vested interest in getting a low settlement if they want to be promoted or get a raise at the end of the year.
Injury lawyers can be sleazy with their TV commercials and they sure charge an arm and a leg for their services. However, the injury lawyer has to “invest” in their client's claims. If the client does not “win”, the lawyer does not collect. If the case or claim goes to trial, the attorney must front a lot of the cost to make the claim successful.
After being a claim adjuster and seeing the insurance company rankings and what consumers have to see about the insurance industry; I believe that trial lawyers are winning the battle thus far. Insurance companies that provide poor service should go out of business.
If you are a consumer, check this insurance rankings chart and get some insurance quotes to compare your current premium. Make sure you are getting a fair price for the service your carrier is offering!
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In our next issue, we will be delivered on or about April 20th. The topic: Five Secrets of the Injury Adjuster.
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