You may be facing some significant, immediate expenditures as a result of a catastrophic accident. Not only do you have to worry about paying for your medical treatment (particularly if your medical insurance is inadequate), but you may also have to worry about meeting your living expenses if you are unable to work for an extended period of time.
Insurance companies are all too familiar with your position. Unfortunately, they often use a tactic known as the “drop check” to take advantage of your financial need.
The underlying concept behind this technique is that the insurance company may effectively settle your claim for a fraction of its real value by providing some money right away—perhaps even without you asking it. Keep reading to get tips on avoiding this. Then contact The Law Offices of Larry H. Parker at 800-333-0000 for a free legal consultation with a personal injury attorney.
Here are a few examples of typical drop check scenarios:
An insurance adjuster makes a lowball offer after conducting their own preliminary investigation into an accident. They include a check with their offer to make it as simple as possible for the victim to accept the first offer rather than going through the “hassle” of counter-offering.
A person sustains a back injury as a result of a slip and fall, but lacks the financial resources to see a doctor and determine the reason of their ailment (i.e., nerve damage, ruptured disc, etc.). The insurance adjuster offers to write a check for a few thousand dollars so the person can seek medical attention. What they don’t often say is that taking a check relinquishes the wounded person’s right to pursue any future claims for compensation.
Instead of issuing a check, the insurance company deposits funds straight into the injured person’s bank account. If the money is spent or if a long period of time passes without a response, the insurance company will try to convince the victim that the settlement is final and the victim cannot seek more compensation.
How to avoid becoming a sufferer of the drop check strategy
You should be wary of the drop check method if you have been wounded in any type of accident. Here’s what you should do:
Before accepting a settlement, always speak with an attorney. Your attorney will assist you in determining the real potential worth of your claim, preventing you from accepting a lowball offer by accident.
Consider getting a lawsuit cash advance. If you have a good case for compensation but need money right away, you might be able to buy some time by taking out a loan against your future payout. This will allow you to meet your immediate requirements without jeopardizing your capacity to file a claim.
Always read the fine print before making a decision. Never sign any legal or financial agreement without thoroughly reading the tiny print and ensuring that you understand what you are agreeing to. Any settlement terms you don’t understand can be explained by your personal injury lawyer.
Do you require the services of an attorney?
Contact The Law Offices of Larry H. Parker at 800-333-0000 if you need help analyzing a settlement offer or determining the value of your personal injury claim.