Press Release

January 30, 2006

Nevada Drivers More Likely to
File Injury Claims Following Auto Accidents

The following statement may be attributed to Gary Bishop, President of the Nevada Insurance Council.

“Although Nevada drivers are involved in only slightly more accidents than that countrywide average, they are much more likely to claim they were injured in the accident than drivers and passengers in other states.

National auto insurance claims statistics show that in 2003, there were 26.4 injury claims for every 100 auto accidents that caused damage to an automobile. In Nevada, there were 42.1 injury claims for every 100 property damage accidents, 63 percent higher than the national average.

The data lead to one of two conclusions: Either Nevadans are more fragile than other Americans, or auto accidents here are more likely to be viewed as an opportunity to make easy money.

Every auto insurance consumer in Nevada pays a ‘hidden tax’ to the lawyers and medical providers who are complicit in fraudulent auto accidents. This includes both ‘padded’ claims, which typically involving unnecessary medical treatment to increase the ultimate settlement as well as accidents that are staged, at great risk to the public, solely for the purpose of extracting an insurance settlement.

As of September 30, 2005, insurers in Nevada are paying 95.5 cents in claims and expenses (not including sales or overhead expenses) for every dollar collected in auto liability insurance premiums. By contrast, the nationwide average is 77 cents. This explains why Nevadans pay the 14th highest auto insurance rates in the country and why auto insurance rates are likely to increase unless current trends are reversed.”

CONTACT: Jim Denton
702-437-9007

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