No-Fault State Question

[maverick02]

For example, Here is a screenshot from Geico (6 mo - $488):

 

[Josh]

If I understand correctly, the lawyer basically filed a claim with the insurance company, got paid $6000 for a half hour work and left the client hanging?

I should of been a lawyer!!!!

Dan

Biggest scam going!

I was under the impression they couldn't take their fee out of money for medical claims. I know that's the way it is in NY, it would surprise me if any state would allow them to take money that is for a claim.
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I'm seeing here in NJ, that most insurance companies default to 250K PIP with $250 deductible with rates that are not all that bad. But 250K is a lot of money.

$250k is pretty high, in NY it's $50k plus a guaranteed option to buy $25k as long as you buy it before the $50k is exhausted (WTF NY?).

The additional uninsured/underinsured would pay in the event yours is exhausted. $250k sounds like a lot, but get your back jacked up in a car accident at age 35 and become permanently partially disabled and it won't sound like nearly as much.

 

[Indiana_Adam]

So in your no-fault states, do the insurance companies subrogate after paying out their PIP? Also, does the use of PIP warrant a rate hike for the driver that wasn't at fault?

 

[Josh]

So in your no-fault states, do the insurance companies subrogate after paying out their PIP? Also, does the use of PIP warrant a rate hike for the driver that wasn't at fault?

No, they don't subrogate.

I don't believe PIP affects rates UNLESS it's at fault.

 

[joshb]

So in your no-fault states, do the insurance companies subrogate after paying out their PIP? Also, does the use of PIP warrant a rate hike for the driver that wasn't at fault?

No, they do not subrogate for PIP. No, Pip does not warrant a rate hike.

With that being said, in Florida, There is a lot of fraud along with that pip coverage, so if you have a PIP claim, it is very hard to switch to another company. Out of the 16 carriers I represent 3 or 4 might take a pip claim (depending on severity). If there was a PD claim for less than $1,000 (i.e. not much damage to the vehicle), for example, and PIP paid out the max amount, its almost a guarantee a lawyer, chiropractor, and massage therapist were involved to get the claim that high and my carriers would not accept that consumer.

It doesn't help lawyers are advertising all day that you could be entitled to $10,000 FREE just for being in an accident. That type of advertisement encourages insurance fraud and should be illegal in my opinion.

I have now heard ads on the radio that if yo uwere in an accident and didn't have enough coverage that if you contact such and such attorneys they will go after the agencies for not offering more coverage.

 

[Indiana_Adam]

PIP sounds like a terrible idea to me. Do these people think this money is free? Don't they realize it may not raise their premium directly, but the more a company pays out, the higher their average rate climbs.

 

[VolAgent]

Biggest scam going!

I was under the impression they couldn't take their fee out of money for medical claims. I know that's the way it is in NY, it would surprise me if any state would allow them to take money that is for a claim.

Aren't attorney fees added on top of the medical bills in determining the final award amount? Or is that not the situation when the case is taken on contingency?

 

[joshb]

Aren't attorney fees added on top of the medical bills in determining the final award amount? Or is that not the situation when the case is taken on contingency?

I have never been in a situation like this myself, but from what a few customers have told me after it happened to them, the lawyer took his fees out of the UM portion and left the insured on his own to find the money to pay his med. bills. this has happened about a dozen times to my customers, atleast ones that came back and told me about it.

All of them were elderly customers and were pushed into using lawyers by friends, family, etc., but deeply regretted it afterwards.

 

[VolAgent]

I have never been in a situation like this myself, but from what a few customers have told me after it happened to them, the lawyer took his fees out of the UM portion and left the insured on his own to find the money to pay his med. bills. this has happened about a dozen times to my customers, atleast ones that came back and told me about it.

All of them were elderly customers and were pushed into using lawyers by friends, family, etc., but deeply regretted it afterwards.

I would question that. Perhaps the attorney wasn't adding his fees into the settlement, or he's not allow to on contigency? Ambulance chasers, and that is what the guys with the billboards are, aren't exactly known for their ethics. Something tells me a good attorney should get you your medical bills paid and get paid for his work.

That said, if they weren't going to get anything without using the attorney, they are still better off. At least they have some of the money for the bills.

 

[joshb]

PIP sounds like a terrible idea to me. Do these people think this money is free? Don't they realize it may not raise their premium directly, but the more a company pays out, the higher their average rate climbs.

Yes they do think its free, becuase these attorneys are telling them it is. I don't know if you listen to the radio, but switch on a radiio station that caters to lower income individuals (if you know what I mean) and listen to the ads. In my area EVERY commercial break is a lawyer or lawyer referral service ad talking about PIP and UM coverage. I watch Seinfled a lot which just so happens to air on the local stations and during every commercial break you have MULTIPLE lawyer advertisements. I can almost recite them word for word because I hear them so often. It is out of control and should not be allowed IMO.