Start looking at insurance companies differently: think of them as a business. If you have watched any amount of television recently, you’ve likely noticed how many commercials there are for insurance companies. They are a business based on premiums—and paying out less than they take in. There is nothing insidious or offensive about addressing them as such; it just sets a more realistic expectation.
With that being said, imagine that you have been injured in a car accident. For the sake of simplicity, let’s assume that the other driver was at fault. Because of the injuries you sustained, an insurance company reaches out and offers you a sum of money on the liable person’s behalf (because they were insured for this scenario). The offer you receive may be a significant amount of money. But should you accept it and be done with the whole ordeal?
A Basic Premise
If you were able to shift your perspective of the insurance company and see them as a business that works towards receiving more money than they spend, the next step in the process might seem reasonable. Why are they offering you money?
The answer is because it is in their interest to do so. If they could afford not to pay you, they would likely do so from a business perspective, and it is doubtful that they would give you all the money you could potentially receive voluntarily.
What Am I Losing?
If you accept the money from the insurance company, what are you giving up in exchange for it? This is an essential aspect of the deal to consider. The money you receive doesn’t come without proverbial strings attached to it.
In all likelihood, if you agree to accept the money, you will be asked to sign a release before the money goes into your bank account or a check arrives. If you sign this release, your claim has ended.
Even if your claim was worth ten times the amount you received, you signed a release form—which released the insurance company. You have two years from the accident date to file a claim, but it is still in your best interest to contact a lawyer immediately.
The Patel Firm PLLC
If you have been in an accident and an insurance company offers to settle, you have the right and ability to consult with an attorney. When you speak to the trusted professionals at The Patel Firm, we will advise you as to whether we believe the offer to be fair. More importantly, you will understand what you are giving up in exchange for the money.
If you have further questions, contact The Patel Firm, PLLC, to schedule your free consultation.