How does this affect auto insurance? Author never says. They just make the wild accusation, follow it up with a fact, and then double down on their wild accusation. No evidence as to why they are related.
- https://www.
insurancebusinessmag.com/us/ guides/the-top-10-most- expensive-states-for-car- insurance-486233.aspx - https://www.insure.com/car-
insurance/car-insurance-rates. html - https://www.bankrate.com/
insurance/car/states/ - https://www.marketwatch.com/
guides/insurance-services/car- insurance-arizona/ - https://www.
insurancethoughtleadership. com/auto-insurance/10-most- expensive-states-car-insurance
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A “litigious” state, where lawsuits are frequently filed, would likely lead to significantly higher auto insurance rates due to the increased risk of large payouts to claimants, causing insurance companies to raise premiums to cover these potential costs; essentially, the more lawsuits filed, the higher the insurance premiums for drivers in that state. [1, 2, 3]
- Higher claim costs: When more lawsuits are filed, insurance companies face larger settlements, which directly increase the cost of claims and therefore, premiums. [1, 2, 4]
- Defensive driving by insurers: To mitigate risk, insurers might raise rates in a highly litigious state to account for the increased likelihood of large payouts. [1, 2, 5]
- Impact on availability of coverage: In extreme cases, high litigation costs could even lead to insurance companies limiting coverage options or withdrawing from a market altogether. [1, 2, 3]
Example: A state with a reputation for large jury awards in personal injury cases is likely to have higher auto insurance premiums compared to a state with a less litigious environment. [1, 2, 5]
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Arizona has many car accident lawsuits each year due to the state’s high number of car accidents.
Explanation
- Arizona has more than 125,000 car accidents each year on average.
- Car accident lawsuits are common in Arizona because of the high number of motor vehicle accidents.
- The damage from a car accident can be significant and life-altering.
- The majority of car accident lawsuits are settled before going to trial.
- The average settlement for a car accident in Arizona can range from $10,000 to over $30,000. Some cases settle for over a million dollars.
Tips for car accident claims
- You have two years to file a car accident claim in Arizona.
- You can recover from a car accident without hiring a lawyer, but it may be more difficult than you think.
- An experienced car accident attorney can help you manage the claim filing process.
- Distracted driving is the leading cause of car crashes in Arizona.