negatives to accepting a insurance settlement?
Posted by MarkJun 30
I am being offered a settlement for a back injury that I inquired. What are the negatives to accepting a cash settlement?
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The main potential drawback is that when you accept the settlement, you are typically agreeing to limit all damages to the amount of that settlement. You likely cannot hold the other party or the carrier responsible for any future issues you may have concerning the injury.
It may be in your best interest to consult an attorney.
(Assuming you are referring to an injury from an auto accident)
If you want to call it a negative : you won’t get much more than that. You will get more in the long run accepting a flat settlement from the insurance company than you would had you hired an attorney. Attorney’s will charge 3, 4, 5x as much as your actual settlement. Afterwards, you will owe them for court and attorney fees. You will not end up with much left.
I work for a very old insurance company. I’ve worked as a licensed adjuster, a call center rep, and a mailroom technician (checks and letters). You would not believe just how much people have turned down because they responded to the insurance companies’ offer based on uneducated ‘victims’ from the past. They ended up with no more than 10% *(if that) of the settlement offer, going through the attorney. Unless you now are para or quadraplegic, suffered a passenger fatality or require serious surgery…contacting an attorney would not be in your best interests.
You have every right as a consumer to challenge the settlement outside of a courtroom. Contact the DOI in your state and inquire of the process to challenge it.
An insurance settlement is not really a positive/negative thing.
In short – when you settle the insurance company will have you sign a paper that ends your claim once and for all never ever to return. In exchange for signing that paper ( a release) you get money (a check).
Ideally, an insurance settlement is a win – win situation.
The at fault driver gets to rest knowing that your claim is done and over with. He does not have to worry about getting sued.
You get money.