What happens if you are in a car accident and file a lawsuit? Does it really make everyone's insurance rates go up? Get the facts. Stop guessing.

1. G E T T H E F A C T S . S T O P G UE S S I N G .
WILL FILING LAWSUITS MAKE EVERYONE’S
INSURANCE RATES GO UP?

2. ARE LAWYERS CREATING AN
INSURANCE CRISIS?
• Personal Injury lawyers are in the business of making sure that people who
are injured get just compensation for their injuries.
• However, because people who carelessly injure others usually have
insurance, some people believe that the work of Personal Injury lawyers is
increasing insurance premiums for everyone.
• Though it may surprise you to read it on a Phoenix Personal Injury lawyer’s
website, this is technically true. However, the amount by which filing
lawsuits affect insurance premiums is hardly noticeable.
• It is true that insurance companies would probably be able to charge
lower premiums if no one ever filed a claim, but it’s important to
remember that only a small fraction of insurance claims occur as a result
of lawsuits, and only a small fraction of the costs of insurance are related
to payouts. Overall, then, the amount that even all lawsuits considered
together add to the cost of insurance is quite small.

3. USING HEALTH INSURANCE AS AN
EXAMPLE.
• Health insurance is a good example. During the recent debate over how to reform our national
health care system, many politicians argued that the best way to reduce health care premiums
was to eliminate or drastically reduce medical malpractice lawsuits.
• Over the last 20 years, studies by the GAO and CBO, independent, bipartisan organizations
created to provide reliable information to policymakers, have shown that this would not reduce
premiums in any significant way.
• According to the studies, of all the money that the U.S. spends on healthcare, somewhere
between 1 and 2 percent goes to malpractice insurance. Of that amount, about 25% could be
saved if medical malpractice lawsuits were completely eliminated.
• This means the overall reduction in health insurance costs for the average consumer would be
about 0.4% In other words, if someone were paying $100.00 per month for health insurance
under the current system, they would be paying $99.60 if there were no more medical
malpractice lawsuits.
• Now, what about those four tenths of a cent out of every dollar that Phoenix (and other)
Personal Injury lawyers are responsible for? Yes, some of it goes to pay the lawyers for their work,
but most of it goes to ease the suffering of people who were hurt by someone else’s bad
conduct and get them back on their feet as soon as possible.

4. USING A REAL WORLD EXAMPLE.
• For a real-world example, consider Texas. Texas is one of the states that
has gone the furthest in reducing the rights injured patients have to
recover from their doctors and doctors’ insurance providers. If expensive
lawsuits were a major part of driving up the cost of health insurance,
Texas should be one of the cheapest markets for heath insurance in the
country.
• Instead, it’s one of the most expensive, with parts of the state paying
nearly twice the national average.
• The fact is, even if injured people do not get help from Personal Injury
lawyers, their injury still costs society money. If the injured person loses their
job, they may wind up on welfare. If they can’t afford the medical bills to
treat their injuries, they may go bankrupt.
• Additionally, people who don’t treat their injuries when they should can
wind up needing emergency care, which is the most expensive kind. That
cost gets passed on to all of us and means higher rates for those who
have insurance.

5. HOLDING THE GUILTY PARTY
RESPONSIBLE.
• In light of that, consider how much better it would be to
simply hold the guilty party responsible for their actions.
• The most efficient, logical, and fair way to take care of
people who have been injured because of someone’s
misconduct is to make the guilty person be responsible,
either directly or through their insurance company.
• To do that efficiently and effectively, you need the help
of a professional Phoenix Personal Injury lawyer.

6. ANY QUESTIONS?
• Feel free to get in touch with Zachar Law Firm
regarding any questions you might have regarding
personal injury or wrongful death law in Arizona.
• It’s better to protect your rights and know the facts.
Stop guessing.
• Call us at 602-494-4800, or you can live chat with us
24/7 at ZacharLawFirm.com