If an insurance company offers you money shortly after a Florida car accident, you should understand exactly what you’re signing before accepting any settlement. In most cases, accepting an early offer can permanently waive your right to seek additional compensation.
KEY TAKEAWAYS:
- Don’t sign a bodily injury release without understanding what you are giving up.
- Early settlement offers often come before the full extent of your injuries is known.
- Speaking with a personal injury lawyer before accepting a binding settlement can help you make an informed decision.
Imagine this:
You’ve just been in a serious car accident.
Your neck hurts.
Your car may be totaled.
You haven’t even figured out how you’re going to pay your medical bills.
Then the insurance company calls and offers you $4,000—today.
It sounds tempting.
But accepting that money could cost you tens of thousands of dollars. It’s no surprise that when you’re confused, overwhelmed, and vulnerable after a crash, a car insurance company may try to settle your claim quickly.
I see this happen all the time in my personal injury practice.
Let me share a story of a former client who just went through this experience.
A Bad Car Accident And A $4,000 Settlement Offer
Several years ago, I helped a wonderful client with her legal dispute. She was happy with the outcome.
Recently, she contacted me and was quite concerned she made a costly mistake. She explained she was recently in a car accident and that she accepted money from the car insurance company. She was worried because she did not know if she had waived her rights.
I asked her for more details.
She explained that after her accident, she was in pain and her car was badly damaged. She got medical treatment, but she was unsure how to handle her car and other issues. She also noted the other driver was fully responsible.
Shortly after the accident, an insurance adjuster with the other driver’s car insurance company called her and asked if she would like money for her pain and suffering. Additionally, the insurance adjuster, who seemed friendly, said she would get the money very quickly. And to get the money, all my former client had to do was sign a document and she would get $4,000 in her bank account immediately. My former client thought this seemed reasonable and so she signed the document.
After receiving the $4,000, my former client began to have doubts. Did she waive her claim? Was $4,000 enough? She sent me a copy of the document and wondered if there was anything she could do to.
I reviewed the document and it confirmed what I believed it would be: a bodily injury release. The bodily injury release, of course, read that by accepting the $4,000 my former client settled her injury claim and could not bring any other claims for her injuries or damages. Of course, the adjusters rarely tell you that once you sign the release, your claim is over—even if you later learn you need more medical treatment or even surgery.
Unfortunately, there was no injury case to pursue. It was fully settled. And what made it especially frustrating is that her injury claim was likely worth far more.
Again, this is not the first time I have seen this happen. Insurance companies frequently contact injury victims right after accidents and try to get quick, cheap settlements. Why would they do this?
Why Do Insurance Companies Offer Money So Quickly?
Insurance companies are businesses and one of their goals is to resolve claims as quickly and for the lowest amount they believe they owe. Shortly after an accident, many injured people don’t yet know the seriousness of their injuries. By settling early, the insurance company can often avoid paying for future medical treatment, surgery, lost wages, and pain and suffering that may become apparent later.
If you are involved in a Florida car accident and the insurance company is offering you money right after your car accident, what should you do?
Here are three most important and helpful lessons.
First Lesson: Don’t Sign Any Documents Without First Speaking With A Lawyer
There are many types of documents insurance companies may ask you to sign or complete in connection with car accidents. Some of those documents – like bodily injury releases – have important consequences.
Before signing any document, speak with a lawyer. At a minimum, it is critical you know exactly what you are signing and what rights you may be waiving.
Second Lesson: Settling Too Fast Can Be A Mistake
Right after your car accident, a settlement offer for several thousands of dollars might sound fair and reasonable. But is it?
In my practice, I discourage clients from settling early because I do not know the extent of their injuries. In many cases, my clients’ treatment will last many months. What is more, injury victims may have important surgical procedures many months after the accident. This medical treatment is important because it is one of the factors in determining the value of the case. If you settle too soon, you may be leaving money on the table.
Third Lesson: Lawyers Will Help Increase Your Financial Recovery
Understandably, some car accident victims, for various reasons, might not want to hire a personal injury lawyer. One such reason is that hiring a personal injury lawyer will be expensive and decrease your recovery.
However, this concern is misplaced.
Research has found that injured people represented by counsel often recover substantially more compensation than those who handle cases on their own (although every case is different and unique). We have written about this before, but it is worth repeating. By using an injury lawyer, you are likely to recover more money than if you represent yourself.
So if you think you will recover more money by representing yourself, chances are this will actually not happen.
Every accident is different. Some injuries heal within weeks, while the full extent of other injuries may not become apparent for months. Before making any final decision that could permanently affect your legal rights, make sure you understand your injuries and legal options.
Conclusion
If you’ve been injured in a Florida car accident, don’t feel pressured to accept the insurance company’s first offer.
Before signing any release or accepting a settlement, speak with an experienced personal injury attorney who can explain your rights.
At Barthelette Law, we’re happy to review your case and explain your options – at no cost and with no obligation. If you’ve been injured in a Florida car accident and have questions about a settlement offer, contact Barthelette Law today for a free consultation. We’ll explain your rights and help you make an informed decision before you sign anything.
We have added a brief question-and-answer section below with more helpful information.
Drive safely!
Additional Frequently Asked Questions
- Should I accept the insurance company’s first settlement offer?
In most cases, accident victims should not accept the insurance company’s first settlement offer without first understanding the extent of their injuries and speaking with an attorney. It is extremely rare for an insurance company’s first settlement offer to be its best and final offer. So do not accept the first settlement offer.
- Can I ask for more money after signing a bodily injury release?
Generally, no. A release is a contract. Once you sign you are bound by its terms and conditions. There are exceptions, of course, but they are hard to prove.
- What is a bodily injury release?
A bodily injury release is a contract between the injured party and the at-fault party (and his or her insurance company) in which the insurance company pays money in exchange for a release of all claims against its insured/at-fault party. Put another way, the injured party receives money and in exchange agrees to waive all claims against the at-fault party. Importantly, this means that if you sign a bodily injury release but later get more medical care or treatment – even a surgery – down the road you cannot go back and ask for more money. Once signed, your injury claim is over.
- How long should I wait before settling?
There is no one-size-fits-all answer to this question. But the best way to handle this question is wait until you complete your medical treatment.
- Do I need a lawyer before talking to the insurance company?
Technically, you do not need a lawyer before talking to the insurance company. But in my practice, I generally do not let my clients speak to the at-fault party’s insurance company. I do this not because I don’t want my clients to tell their story, but because I want to make sure the insurance company is not violating the attorney-client privilege or otherwise asking inappropriate questions.
- What if I already accepted a settlement?
As discussed above, it is hard to challenge or undo a settlement. However, there are times when settlements can be undone. Call a lawyer and speak about the specifics of your claim.
- Can I accept property damage money?
Keep in mind that settling the property damage claim for your vehicle is often separate from settling your bodily injury claim. Be sure you understand exactly what the insurance company is asking you to sign. Additionally, if your own car insurance is paying for your property damage, you cannot seek those same damages.