Originally posted by m&m's mom
THIS is why all of our insurance is so high!
It certainly sounds like you are just trying to get all you can and I think that is morally wrong.
And yes, before I get torched I was in a MAJOR accident in February and EGADS!!! did not take ANYTHING for pain and suffering.
I believe you get in life when you give.
If insurance companies are losing money because of accidents caused by people on cell phones, then they are likely to lobby for laws that restrict cell phone use by drivers. IMO thats a good thing.
In the case of the accident I was involved in I was involved in my wife and I were hit by a 16 year old girl who was driving with two of her friends in the car. In theory my wife and I should be paid an amount of money that makes us forget that we were in an accident. The insurance company should cover that cost by raising the rates of all 16 year old drivers. If the cost is extremely high, then the insurance company will lobby to put restrictions on 16 year old drivers so that similar accidents do not occur in the future. As some states are already restricting the number of passengers that younger drivers can have in cars, it is obvious that this is already happening and its a shame that it isn't happening more.
And, for example, if insurance company A just allocates the cost of that 16 year old driver's mistake across all of their customers, then in theory another company, company B, that correctly allocates the cost of 16 year old drivers' accidents to other 16 year old drivers would steal away all customers from company A that aren't 16. This is capitalism's way of allocating resources in their best manner, but it only works if all true cost are realized. Hidden (extrinsic) costs such as pain and suffering that are not realized circumvent the system and the most efficient use of resources no longer occurs.
By not getting all of the money you are owed in an accident you are circumventing the best (and only) system we have for dealing with accidents. Yeah it sucks that most lawyers get a 33% cut right off of the top, but they are paid that money because they are worth it. It also sucks that insurance companies will try to screw people out of money they are rightfully due because they are trying to keep rates low (even for those people that are causing the accidents!). The two sides balance each other out and drivers are left paying for the administrative and legal fees involved in getting the balance to occur. If the insurance companies would pay people what they are rightfully due, then there would be no need for lawyers.
Note that trying to get more money by lying about the severity of your injuries also circumvents the system. IMO that would be the only morally wrong action that an accident victim could take.
Unfortunately my wife and I will get no where near enough money to make us forget we had an accident. You could offer us $100,000 cash today or the chance to go back in time and avoid our accident and 100 times out of 100 we would pick avoiding the accident. And we won't even get $100,000. We'll get much less than that minus 33% that will go directly to our lawyer, which we have to pay because the insurance company will not pay us what we are due.
It's my opinion that this country does not take driving and the dangers involved seriously enough. The only way to fix this is to make people pay through their wallet. I would gladly pay more money for insurance premiums if it makes accidents less likely to occur in the future. It's unfortunate that rising insurance premiums make it difficult for people with lower incomes to drive, but people have to realize that driving is a privelage (not a right) that only a very small percentage of all of the people that have ever lived have been afforded. Heck. Is it such a bad thing that rising insurance premiums cause more and more people to rely on public transportation?
-Josh