Car accidents are prevalent in the U.S. – it records the most road crash deaths,…
After a car accident, receiving a quick insurance check often reflects a company's haste to settle cheaply, not goodwill. Atlanta car accident lawyer Nathan Fitzpatrick, from the Fitzpatrick Law Firm, explains why careful consideration is essential before accepting such offers.
Understanding Why You Received a Check
Receiving a check from an insurance company after a car accident is a good sign, even if the amount is not enough to fairly compensate you for your accident injuries and property damage. Finding a check in your mailbox is encouraging because it indicates that the insurance company acknowledges the validity of your claim and your entitlement to compensation. Receiving a check just a few days or weeks after an accident is an even better sign since it shows that the insurance company is eager to settle your claim swiftly.
Insurance Companies Are Not Your Friends
Insurance companies are corporations, which means their primary responsibility is to deliver returns to their stockholders and not adequately compensate their policyholders. If an insurance company prioritized service over profits, it could be sued by its investors. This is why insurance companies try to settle claims quickly and inexpensively, and it is also why they hurry to mail checks to car accident victims.
The Significance of the Insurance Check
Depositing, cashing, or otherwise negotiating an insurance company check could prevent you from obtaining fair compensation for your injury, loss, or damage. If you receive a check from an insurance company and study it and the paperwork that came with it, you will almost certainly find language that states you will not be able to seek further compensation or take legal action if you cash the check.
This language is sometimes printed on the check, but it can usually be found on a disclaimer that is sent along with the check. This means that the check is the full or final payment for your claim, which means you will not be able to seek any more money if you cash it.
The Impact of Accepting the Check
If you were in a serious accident, you could be dealing with a great deal of financial stress when you receive a check from an insurance company. Your injuries may be preventing you from working and earning a living, or your medical expenses could be piling up.
A check for thousands of dollars could make your situation far more tolerable, but there are very good reasons why you should think carefully before you cash it. These reasons include:
You won’t be able to sue: Typically, the waiver in these situations contains a provision stating that by depositing the insurance check, you relinquish your rights to any future legal action and additional compensation. This provision implies that if you accept and cash an insurance check following a car accident, you forfeit your ability to initiate a personal injury lawsuit against the driver responsible for the accident. Consequently, should your injuries prove more severe than initially diagnosed, requiring surgery or other finance-draining medical interventions, you will have no recourse to seek further compensation.
You won’t be compensated for your lost income: An auto insurance claim check usually covers vehicle repairs only. If you cash one, you will not be entitled to compensation for the wages you lose if your injuries prevent you from working or you have to take time off work to attend appointments with doctors or physical therapists.
You will be on your own if the other driver sues you: If you cash a car insurance claim check, your insurance company will no longer be obligated to defend you if the other driver sues you. This is something that you should take seriously because legal fees and court costs accumulate quickly in personal injury cases, and Georgia law gives accident victims up to two years to file lawsuits.
Potential Damages You Might Forfeit by Accepting Early Insurance Settlements
Before anyone is tempted to cash their insurance checks, it's vital that they recognize that they might be entitled to a range of damages beyond just covering their immediate medical expenses.
Many accident victims are primarily focused on medically related bills, yet there's a broader spectrum of compensable losses. These include lost wages from missed work, the cost of repairing or replacing damaged property, rehabilitation expenses, and various out-of-pocket costs directly related to the accident.
In addition to these economic damages, there's also the potential to claim for non-economic damages. This category is often overlooked and includes compensation for intangible losses such as emotional distress, pain and suffering, and a reduced quality of life resulting from the accident.
Before hastily accepting an insurance offer that may primarily address your medically related bills, it's essential to understand and consider the full extent of compensation to which you're legally entitled.
Immediate Steps to Take
So, what should you do if you receive an insurance check if cashing it would be a mistake? The insurance company sent you the check because it wants to draw a line under your claim and keep its costs down, so the first thing you should do is figure out how much money cashing the check would leave on the table.
To do this, you will have to determine how much treating your injuries will cost, how much time you will have to take off work to receive treatment, and how much the accident has lowered the value of your car. You will also have to come up with a dollar figure that would adequately compensate you for your pain and suffering.
Evaluating Your Car Accident Claim
Evaluating car accident insurance claims can be a complex process. To arrive at a figure that represents fair and full compensation, you will have to assign a dollar figure to your economic and noneconomic damages. If you are injured in a motor vehicle accident, your economic and noneconomic damages could include:
Medical bills: Insurance claims should cover all of an accident victim’s crash-related health care expenses. You should hold onto your medical bills and keep a record of all of your healthcare appointments, and you should ask your doctors and physical therapists how long your treatment is likely to last. You will need this information to evaluate your claim because you are entitled to compensation for treatment you have already received and treatment you will receive in the future.
Lost wages: If your injuries prevent you from working or you have to take time off work to attend medical appointments, you will be entitled to compensation to cover the wages you lose. You will also be entitled to compensation if your injuries prevent you from receiving a promotion or limit the kind of work you can do.
Property damage: A car insurance claim check usually covers vehicle repairs, but that may not be enough to adequately compensate you for your property damage. Cars that have been involved in serious accidents are worth less than vehicles that are accident-free, even if an authorized auto body shop repaired them. You deserve compensation for your car’s decline in value, and you should also be compensated for personal items that were lost or damaged in the accident.
Pain and suffering: The noneconomic damages for your pain and suffering will be based on the amount of discomfort you endured and the length of time that you endured it. If you want to make sure that you receive all of the money you are entitled to, you should keep a pain diary and record how much discomfort you experience on a daily basis.
Out-of-pocket expenses: Insurance claims may cover the costs of renting a vehicle from a leasing company, but they rarely compensate accident victims for other out-of-pocket expenses. These expenses can include cab, bus, or train fares, child care costs, and vehicle towing or storage fees, often leaving individuals to negotiate separately with the leasing company or other service providers for these additional costs.
The Role of Auto Insurance in Your Claim
All vehicle owners in Georgia are required to carry personal injury and property damage liability insurance, so you will probably be dealing with an insurance carrier and not another motorist if you seek compensation after an accident. Georgia is also an at-fault state, which means you will be dealing with the other driver’s insurance company if the accident was not your fault. Even if you deal with your own insurance company, the adjuster assigned to the case will try to settle your claim for as little as possible.
Legal Considerations: Consulting a Car Accident Lawyer
If you are involved in a serious car accident caused by the negligent actions of another driver, you will probably be entitled to significant compensation. The other driver’s insurance company will assign an experienced adjuster to handle the claim, and they will try to convince you to settle for less than you deserve.
Given the adjuster's intention to minimize your compensation, it is always a good idea to speak with an experienced car accident lawyer before accepting an insurance company’s settlement offer. Most personal injury attorneys offer prospective clients a free consultation, so it probably won’t cost you anything to learn about your legal options.
Navigating Insurance Claim Settlements
Experienced car accident attorneys are usually skilled negotiators, and they know the kind of tricks and tactics insurance adjusters use to settle claims quickly and inexpensively. If you retain the services of a personal injury attorney after being involved in a car accident, they will probably gather quite a bit of information before negotiations begin.
Moreover, your professional attorney could speak to your doctors to find out if your injuries have reached the point of maximum medical improvement. Also, importantly, they will spend time examining the facts of the case to make sure that the blame has been allocated correctly in the context of the insurance claim.
The significance of this fact is particularly noteworthy in Georgia, where the at-fault law comes into play. Under this regulation, your level of responsibility in causing the accident directly affects your compensation. For instance, if you are found to be 20% at fault for the accident, the compensation from your insurance claim will be reduced accordingly by 20%.
Why Choose the Fitzpatrick Firm?
Don't settle for an insurance company pay an amount that undervalues your claim. The Fitzpatrick Firm has represented hundreds of car accident victims, and our team has recovered millions of dollars for our clients. We can help you navigate the complex car accident settlement process, and we will fight to make sure that you receive the compensation you deserve. We offer our clients a free consultation, and we work hard never to leave insurance money on the table.
Car Accident FAQs
What Should I Do If I Receive a Check from My Insurance Company After a Car Accident?
You may have been paying your insurance premiums on time for many years, but that does not mean your insurance company is on your side. If you receive a check from the insurance company in the mail, it will probably be for much less than you deserve. In other words, speak to a lawyer if your insurance company sends you a check.
Does Cashing the Check Mean I Agree to the Settlement?
It usually does. If you read the fine print, you will probably find language that states the check represents full and final payment for your claim. That means you won’t get any more money, you won’t be able to file a lawsuit, and your insurance company will not defend you if you are sued.
Can I Still Hire a Lawyer If I've Already Cashed the Insurance Check?
You can, but it probably won’t do you much good if you give up your right to further compensation by cashing the settlement check. There are situations where you could seek more compensation even after cashing the check, so it would probably be a good idea to at least speak with an attorney.
Just make sure that you pick a lawyer who offers prospective clients a free consultation and can help review the settlement check. After reviewing, they can advise if it amounts to adequate and just compensation for the damages you've sustained.
Secure Your Rights and Maximize Your Settlement: Contact the Fitzpatrick Firm Today for Expert Legal Guidance After Your Car Accident
As a car accident victim, you fight an uphill battle when seeking compensation for injuries and property damage. An insurance company will assign a skilled professional to settle your claim for as little as possible if you are involved in a car accident. To ensure you're not shortchanged in this crucial process, don't cash the check until you've contacted the Fitzpatrick Firm at (678) 607-5550 for a free consultation!