Ambulance Chaser

AAA

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.

INVESTOPEDIA EXPLAINS '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. No results found.
Related Articles
  1. Understanding Your Insurance Contract
    Insurance

    Understanding Your Insurance Contract

  2. The History Of Insurance
    Home & Auto

    The History Of Insurance

  3. 15 Insurance Policies You Don't Need
    Insurance

    15 Insurance Policies You Don't Need

  4. Fighting The High Costs Of Healthcare
    Home & Auto

    Fighting The High Costs Of Healthcare

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center