The cost of auto insurance.

[CALGUY]

There are a few causes for the insurance rate hikes, and I believe the major culprit here is the ambulance chasing attorneys that tout big claim settlements.
Insurance companies spell out in their policies, what amounts people are insured for, so my question is how are accident lawyers able to skirt those policy amounts, and get these exorbitant amounts which are raising rates through out the state?
The lawyers are making big bucks with these court cases.

I think the state would do well in curbing these accident lawyers from taking on accident cases.
Either that, or stop them from advertising their business like it was years ago.
Years ago, lawyers were prohibited from advertising their business.

You get into an accident, and your policy should pay the limits stated in your policy, and that's it.
These accident lawyers are the biggest cause rates have gone so high.
Here in So Cal, the airways are bombarded daily with the claims these lawyers are touting, telling us they can get ten times the amount the insurance companies agree to pay.
Why should insurance companies pay more than the agreed to amount stated in the policy?

Insurance policies are a binding contract, how is this not a fact when cases go to court?

[Social Democrat]

A couple of things - the huge settlements you see advertised on TV could be from commercial policies that carry extremely high policy limits and involve documented serious i jnjuries.Transportation companies usually have very high policy limits as well as brick and mortor businesses such as grocery stores, restaurants, etc.
You may have seen the ads for the two brothers (attorneys) standing on big rigs which have high limits and frequently severe damages and injuries. Additionally, there may be commercial liability policies that kick in if the primary truck policy doesn't cover damages/injuries.
As for private passenger auto policies, the insurance company is responsible for payments up to policy limits. However, if the injured party files a lawsuit against the policyholder and is awarded damages higher than the policy limits, the policyholder could have to pay the excess over their policy limits - ouch! Of course that depends on whether or not the policyholder has the ability, or assets, to pay the judgement.
It pays to carry adequate insurance coverage as it seems the most minor of accidents can produce "injuries" that attorneys expoiit shamelessly.
I doubt attorneys will be prohibited from advertising as I see more doing so. You add in the fact that many feel like they should cash in on the opportunity to do so at not cost to them.
These are just a couple of the highlights to think about.

[CALGUY]

The problem seem to be that the policy holders and the lawyers they hire, care little about the actual facts spelled out in a policy.
One insures themselves, and their vehicle for let's say, $50,000, then there should be a law that a policy holder can get no more than the agreed amount of $50,000 as stated in the policy, at the time the policy was issued.
Somehow these ambulance chasing attorneys seem to be able to thwart the policy by taking these issues to court, and winning much higher amounts than agreed to in the original policy.
I believe they are the reason our rates are climbing at unprecedent amounts.
There needs to be legislation to stop attorney's from altering stated facts of an insurance policy.

The insurance companies should not be liable for more than the policy states.
I don't believe it is the amount of claims that are causing the rate increases, it's the dollar amounts of the claims insurance companies have to shell out that are causing rate increases for all of us.