Opportunity seeking plaintiff lawyers partner with unscrupulous medical providers to grossly inflate claims, resulting in increased insurance premiums and driving trucking companies out of business.
Plaintiff attorneys refer clients to preferred medical facilities in which the patient is instructed NOT to make claims on their insurance, thus side-stepping insurance-based rates. These doctors and lawyers work together to charge exorbitant amounts that are 10–20 times the amount the medical provider actually gets paid for the services.
Too often, this environment also sees prescribed medical services and treatment above and beyond actual needs. These exaggerated costs are used to leverage settlements. Multi-million dollar or “nuclear” verdicts grab headlines, but abuse is more frequently found in more routine settlements under a typical umbrella coverage of $1 million.
Insurance rates are skyrocketing for the transportation industry. The industry saw a 10 percent increase in 2018 and 30 percent increase in 2019, even for companies with excellent safety records. Commercial liability insurers are leaving the market and companies are closing their doors due to fewer options and climbing rates.
88 Percent Small Company Owners
1 in 15 Texans Employed by Trucking
2 Million Tons of Goods Transported in Texas Each Day
55,300 Motor Vehicle Lawsuits Filed in 2019
118 Percent Increase in Motor Vehicle Lawsuits Since 2008
1 in 10 Lawsuit-to-Crash Ratio in Texas
30 Percent Increased Insurance Costs for Commercial Motor Vehicles
20 Times the Amount Charged Above Medical Providers Insurance-Based Rates
400 Percent Increase in Coverage Above Primary or Self-Insurance Limits