I have had a number of clients bring to my attention a very troubling trend of insurance companies reaching out to settle a case almost immediately following the crash. “Immediately” is certainly a fair characterization as I have had reports of an injured person being called by the at-fault driver’s insurance company while she was in the emergency room; a client being called within one hour of the crash; and a number of times the call came from the at-fault driver’s insurance company within 24 hours of the crash. This trend is sometimes referred to as “swoop and settle” or “release and run” because that is what the insurance company is attempting to do…rush in and get a signed release of all claims.
The pattern is that the injured person is offered a nominal sum such as $500.00 or $1,000 in exchange for releasing all of their rights. Sometimes, the insurance company will add the emergency room bill on to the nominal settlement but substantial risks remain for the injured person.
It is not unusual for an injury to take time to develop. Doctors understandably do not always jump right into more sophisticated and expensive diagnostics such as an MRI so the full extent of the injury is not known within a day, two days, a week, or often substantially longer.
Once the insurance company gets the release signed, it can be extremely difficult to get a Release voided and, more importantly, why take the risk when it is completely unnecessary?
The much better way to proceed is to work with a qualified healthcare provider so that your injuries are properly diagnosed; go through whatever treatment plan is recommended; and get to a point where a physician can make a properly informed prognosis.
Simply put, the full nature and extent of an injury must be reasonably known before a case can be properly evaluated. Insurance companies would be happy to settle right away so you are robbed of the opportunity to be fully informed as to the extent of the injuries done to you. Sometimes, a fractured bone does not heal as expected. Sometimes, a doctor will begin with conservative methods of treatment but then later decide that surgery is the only viable option. Sometimes, a second medical opinion is obtained and a completely different diagnosis or treatment plan is given. The list is endless, but the point is that premature resolution of a claim means the injured person bears the consequences of the previously unknown information, not the insurance company.
There are other important considerations that in our experience insurance companies do not mention when trying to achieve an early and minimal settlement such as Healthcare Service Liens and subrogation interests. Those are beyond the scope of this post but the purpose of this message is to point out that there are potentially a number of traps for the unwary when being pressured into an early settlement by an insurance company.
Amoni Law Offices, P.C. is located in Aurora, IL and serves clients in and around Aurora, Sugar Grove, Batavia, Elburn, North Aurora, Mooseheart, Bristol, Big Rock, Kane County and Kendall County.
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