Beware of a new trick from the insurance companies!!
Recently insurance carriers have been offering quick settlements to you when you are injured in an auto collision. They do this when you are hurt, often disoriented, sometimes missing work, and maybe even desperate, distraught and at your most vulnerable. They offer to pay your medical bills and then give you some dollar amount in pocket. Sometimes they even include an amount for loss of earnings. For example, we’ll pay your medical bills and give you $500.00 for your trouble. I have even heard of offers of several thousand dollars. This can be in cases of injury claims for third party (the other guy’s insurance) or even your own insurance when a driver is uninsured or underinsured.
Don’t believe them!! Insurance carriers are doing this to save them money and pay you less for your claim. They are preying on you when you are distraught, uncertain, and at your weakest. They are also being deceptive and misleading. BE WARNED! This is a deception crafted by the attorneys and insurance carriers to pay out less overall for claims. Once you agree to this; it is a settlement. Your case is settled forever no matter what injuries or complications you may have. I have frequently taken calls from people who want to sue the person, or make a claim, or get the value of their claim because they were mislead by the insurance company and thought they were getting something that they didn’t.
Do not believe the insurance company when they say they want to take care of things. Talk to a lawyer first! This is a deception meant to pay you less, and here is why:
1) You may end up owing money to your health care providers – These settlement agreements agree to pay reasonable, necessary, and customary medical bills. They typically include qualifying terms so that the insurance company can deny certain charges and leave you holding the bag and responsible for the charges. In many cases you are contractually obligated to a charge that the insurance carrier finds not to be a reasonable charge and you have to pay it! I have talked to many people that have thought that they were getting money in pocket from an early settlement and then ended up owing thousands! Don’t do it!!
2) You are not maximizing your recover or in pocket settlement – As a lawyer, I advise my clients on treatment to get them the care they need and their recovery will be fair and reasonable. It is not possible to evaluate the level of pain, suffering, trouble, inconvenience, and other losses until you have treated for your injuries. An early settlement does not take this into account and is the insurance company getting you to settle your claim for less than it will be worth in order for them to pay out as little as possible. Your attorney may also use your own benefits to maximize your in pocket recovery and use provisions in the law to reduce your medical bills depending on the providers and the circumstances of your case. Having an attorney will help to make sure that you recover the maximum in pocket settlement.
3) You may owe money to your health insurance carrier. They may even sue you to get this! – Beware, the early settlement agreements typically define the medical bills as what is due and owing. This means after your health insurance (including Medicare and A.H.C.C.C.S.) has paid for some or all of the charges. The settlement agreement does not contemplate reimbursement to your health insurance carrier for monies owed under the law for reimbursement. I have talked to many people that though they had settled their case and were putting some money in their pocket only to find out that their health insurance carrier was owed more! Do not trust the insurance company when they offer to settle your injury claim. Talk to a lawyer first!
Do not take an early injury settlement from an insurance company – Talk to a lawyer first! This is a deceptive, misleading, and disingenuous tactic to save the insurance company money at your expense.