5 Questions to Ask Before Accepting an Insurance Settlement After a Personal Injury
If you suffer a personal injury after a workplace mishap, car accident, or dog bite, for instance, one option is to pursue a personal injury lawsuit against the party deemed to be at fault.
Insurance companies don’t always play fair, so it might initially be encouraging to get a settlement offer. Going that route can bring things to a head sooner and ensure that your claim doesn’t drag on and on in a protracted lawsuit.
While a settlement offer can mean having the money you need to cover medical bills, lost income, and more, you need to make a distinction between a good-faith offer and a lowball offer. That’s something a personal injury lawyer can help you with — going toe-to-toe with the insurer to ensure you’re compensated fairly.
It’s essential to analyze the situation to ensure that the settlement actually covers everything needed and that you’re not being taken advantage of. So, ask yourself the following five questions before accepting a settlement — and be sure to seek counsel from a good lawyer.
Question #1 – Have I Reached Maximum Medical Improvement?
The most common mistake that victims of personal injury accidents likely make is accepting settlements too soon. Depending on the nature and extent of the injuries, it can take weeks, if not months, for someone to fully comprehend the damage.
Some medical conditions that seemed minor at first may become more serious and require additional treatment later. This is why it’s crucial to ensure the settlement fully accounts for all injuries sustained in the accident.
Wait at least until your medical condition stabilizes, and you get feedback from medical professionals before you consider a settlement offer from an insurance company.
Question #2 – Does the Settlement Cover All My Medical Expenses?
In most cases, the biggest financial burden following a personal injury accident comes in the form of medical bills. While calculating them, it’s important to consider not only the expenses that have occurred so far but also those that could materialize in the future.
These may include emergency room visits, hospital stays, tests, prescriptions, physical therapy, and future treatment costs.
Looking at all these expenses and comparing them to the amount proposed in the settlement will help determine if the sum offered actually covers all the losses.
Also, health insurance might not cover all expenses, so additional costs will have to be included in the calculation. It’s essential that the settlement accounts for the full financial impact of medical expenses, rather than just the bills already incurred.
A personal injury lawyer will often consult with experts in different medical fields to calculate how much money you’ll need to deal with current and future costs related to your injury.
Question #3 – Have I Considered Lost Income and Future Earnings?
Apart from medical bills and lost time due to injuries, a personal injury may have a negative effect on your future earnings potential. The settlement offer should take into account not only lost income but also future income losses resulting from the accident.
Some of the questions that need to be answered include the following:
- How much income have I already lost?
- Did I use up all my vacation and sick days due to my injuries?
- Will my injury affect my ability to work in the future?
- Could my earning potential be decreased?
It goes without saying that for self-employed people, it’s much harder to calculate lost income because apart from time away from the workplace, there may also be other issues to consider, including canceled contracts.
The settlement should always take into account all lost income, whether past or future. Failure to consider all lost income and earning potential may lead to significant financial trouble in the future.
Question #4 – Does the Settlement Account for Non-Monetary Damages?
Although medical bills and lost income are the main components of every personal injury settlement, there are other factors that need to be taken into consideration.
Sometimes, personal injury may cause damage that doesn’t necessarily manifest as medical expenses or lost income but also affects other areas of life. Depending on the case, your personal injury might influence your daily activities, quality of life, and relationships with family and friends.
Pain and suffering, as well as the loss of enjoyment, can greatly affect your life, even if there are no financial costs. Such damages are harder to quantify than others, but they still play a huge role in personal injury cases.
Question #5 – Have I Fully Understood the Terms of the Agreement?
Prior to signing any settlement offer, you should understand all the terms and conditions. Insurance settlements usually contain legal language with consequences that go far beyond the actual offer of money. In the vast majority of cases, accepting an insurance settlement means waiving the right to pursue any claims against the insurance company or the at-fault party in the future.
Never be afraid to clarify details in the document if anything is unclear. It’s a legally binding contract that should be reviewed properly to avoid any trouble in the future.
Although an insurance settlement is a convenient way to resolve problems that you may face after personal injury, it’s essential to think twice before accepting it. Again, working with a personal injury lawyer is one way to ensure you maximize your settlement offer and receive the compensation you’re entitled to.
