People injured in auto accidents who hire attorneys are less likely to be satisfied with their total payments than injured people who do not hire attorneys, suggests a recent study by the Insurance Research Council.

Almost three-quarters of those without attorneys were satisfied with their total payments, compared to less than half of those who hired attorneys, IRC found. Among people with the highest accident expenses, who usually incurred the most serious injuries, two-thirds of those who did not hire attorneys were satisfied with their total payments. In contrast, among people with the highest losses who retained attorneys, fewer than 40 percent were satisfied. These findings are unchanged from a similar IRC study conducted in 1998.

Two factors may contribute to lower satisfaction among accident victims who hire attorneys, the IRC hypothesized: higher costs — specifically, attorneys' fees and medical expenses — and longer settlement times. Auto accident victims who hired attorneys paid them, on average, contingency fees of 32 percent of their total payments. They also incurred far higher medical expenses. In 2002, people with attorneys reported medical expenses that were almost four times higher than the expenses incurred by those without attorneys. Between 1998 and 2002, average medical expenses doubled for those with attorneys, compared to a 22 percent increase for people without.