DEFINITION of 'Ambulance Chaser'

In insurance, a derogatory term for lawyers and other service providers who rush to contact persons involved in accidents with the goal of obtaining business. An ambulance chaser's incentive is often to increase the insurance payments made to victims of an accident, since many are compensated as a percentage of the settlement. On the other side, insurance companies have an incentive to settle claims quickly and for the least cost possible.

BREAKING DOWN 'Ambulance Chaser'

Ambulance chasing is particularly prevalent in states where open records laws allow the general public to obtain accident reports that provide enough information to contact the drivers involved directly. In states where these records are not available, ambulance chasers may instead pursue advertising campaigns to obtain business from recent accident victims.

RELATED TERMS
  1. Auto Insurance

    A policy purchased by vehicle owners to mitigate costs associated ...
  2. Insurance Coverage

    The amount of risk or liability covered for an individual or ...
  3. Medical Payments Coverage

    A feature of an auto insurance policy that covers expenses related ...
  4. Private-Passenger Auto Insurance ...

    An estimate of the risk an insurance company will take on by ...
  5. Personal Injury Protection - PIP

    A feature of automobile insurance that covers the health care ...
  6. Aviation Accident Insurance

    Insurance that provides coverage for injuries resulting from ...
Related Articles
  1. Insurance

    Understanding Insurance Claims

    An insurance claim is a formal request made to an insurance company that asks for a payment based on the terms of the policy.
  2. Insurance

    Beginner's Guide To Auto Insurance

    Find the perfect policy that suits both your coverage and budgetary needs.
  3. Insurance

    4 Types Of Insurance Everyone Needs

    Here are four forms of insurance that are vital to have.
  4. Insurance

    Car Insurance Add-Ons That May Be Worth The Money

    Many auto insurance add-ons are unnecessary in most situations and will simply drain money out of your pocket. There are several that are worth adding on to make sure that you are adequately ...
  5. Insurance

    4 Tips for Negotiating an Insurance Settlement

    It is possible to negotiate your own insurance settlement, especially when the injuries are relatively minor and the other party’s fault is obvious.
  6. Insurance

    Not-At-Fault Accidents Costing Drivers

    Lower income drivers are penalized more for not-at-fault accidents.
  7. Insurance

    Do You Need Casualty Insurance?

    Find out how different types of coverages can protect you and which policy is right for you.
  8. Insurance

    How to Find the Right Car Insurance

    Finding the right car insurance can be difficult. However with these strategies, you can get the most for your money, protect your assets and your health.
  9. Insurance

    Will Filing An Insurance Claim Raise Your Rates?

    An accident can mean higher insurance costs - even if it wasn't your fault.
RELATED FAQS
  1. What are examples of the largest companies in the insurance sector?

    Read about some of the largest and most influential companies in the insurance sector, a list that includes Berkshire Hathaway ... Read Answer >>
  2. Why is accidental life insurance so inexpensive?

    Accidental life insurance is an inexpensive way of obtaining life insurance coverage for yourself or someone else in your ... Read Answer >>
  3. What is the average return on total revenue for the insurance sector?

    Learn about the three main segments of the insurance industry, and find out what the average return on revenues is for the ... Read Answer >>
  4. Can your car insurance company check your driving record?

    Find out why your car insurance company pulls your driving record, how it is used to determine your premium and the importance ... Read Answer >>
Hot Definitions
  1. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
  2. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
  3. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
  4. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers ...
  5. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities ...
  6. Wash-Sale Rule

    An Internal Revenue Service (IRS) rule that prohibits a taxpayer from claiming a loss on the sale or trade of a security ...
Trading Center