After a serious car accident, you may be struggling with physical pain, emotional trauma, and financial hardship. As you watch medical bills and daily expenses accumulate, your recovery may be moving slower than you expected. Suddenly, the insurance adjuster offers what appears to be a generous offer that will solve your financial problems. What you may not realize is that accepting that quick settlement may solve your immediate money concerns, but it will do so to your long-term detriment. If your injuries worsen or your physician later determines that you need costly surgery, you are out of luck if you have already accepted a settlement. Once you sign a settlement agreement and release the at-fault party from liability, your personal injury claim is permanently closed and even if your medical condition deteriorates dramatically, you cannot return to the insurance company and ask for additional compensation. Speaking with a personal injury attorney before making any decisions gives you an opportunity to understand the true value of your claim while allowing you to focus on your recovery. Contact Paul Padda Law by calling 866-526-7974 for a free, confidential review of your case.

Why the Insurance Company is Rushing You to Settle

An insurance company is a business that must turn a profit to remain in business. One way they accomplish that goal is to resolve claims as efficiently and economically as possible. Settling a personal injury claim quickly benefits the insurance company because it eliminates uncertainty and resolves the claim before the victim has the chance to realize the full extent and value of their injuries.

In the immediate aftermath of an accident, no one knows how serious your injuries are or how long your recovery will take. Before those potential future costs become clear, and while you are feeling the financial pressure caused by your injuries, the insurance company has an opportunity to pay you a token amount of compensation and secure a full release from liability.

This commonly used strategy is designed to encourage injured victims to accept less than the full value of their claims before they fully understand the long-term consequences of their injuries.

Is an insurance adjuster pressuring you to sign a release? Don’t sign your rights away. Contact us for a free, confidential review of their offer.

The Hidden Costs of the “Quick Check” Strategy

An early offer to settle in a personal injury case is typically based only on losses incurred shortly after the accident, such as an emergency room bill, vehicle repairs, and a few days of missed work. These losses could represent a fraction of the full value of your case because they do not contemplate future expenses. Your medical providers could later recommend costly diagnostic tests, long-term rehabilitation or therapy, or even major surgery for your injuries. If you accept an early settlement before these recommendations are made, you generally become responsible for paying those future expenses yourself. The insurance company understands this possibility as well as knows that many accident victims do not, which is precisely why they push for early settlements.

The Danger of Settling Before Reaching MMI

One of the most important concepts in a personal injury case is Maximum Medical Improvement (MMI), which refers to the point at which an injury is not expected to improve further with additional medical treatment. As an injured victim, you should not agree to a settlement prior to reaching MMI to ensure that medical providers clearly understand your long-term prognosis. The only way to accurately calculate the true value of your case is with a clear picture of all injuries and anticipated future medical needs related to those injuries. Once you sign a release of liability and accept compensation, you cannot return for more money even if your condition takes a turn for the worse.

What is Maximum Medical Improvement (MMI)?

Maximum medical improvement (MMI) is a crucial legal and medical term used in personal injury cases to indicate that the injured party has reached a point at which further improvement is unlikely with additional medical treatment. It does not mean that you have completely recovered from your injuries. It does, however, mean that your treating physician should be able to answer important questions, such as:

If additional treatment is necessary.
If your injuries are permanent.
If you have permanent work restrictions
If you will have ongoing pain.
If you have sustained permanent impairment.

The answers to these questions are critical to calculating the true value of your personal injury case. As such, waiting until you reach MMI is the best way to ascertain an accurate long-term prognosis that can be used to secure compensation that reflects the full impact of your injuries rather than simply your current medical bills.

We work with top medical professionals in Las Vegas and Chicago to ensure your injuries are fully understood before we demand compensation. Call us to protect your physical and financial recovery.

You Cannot Reopen a Closed Personal Injury Claim

As an injured victim, it is imperative to understand that signing a settlement agreement permanently closes your case. Prior to releasing settlement funds to you, the insurance company will have you sign a release of liability that permanently releases the at-fault party and the insurance company from any further liability for claims arising out of the accident.

In the immediate aftermath of an accident, your injuries may appear minor, leading you to accept a nominal amount of compensation. If you finally submit to an MRI a month later that shows you need costly disc replacement surgery, you cannot return to the insurance company and ask them to cover the cost of the surgery.

To avoid making this common and costly mistake, do not rush to settle your case because once it is closed it cannot be reopened.

Are There Ever Exceptions? When an Early Settlement Might Make Sense

Although waiting until you reach Maximum Medical Improvement is generally the safest approach, there are limited circumstances in which resolving a claim before completing treatment may be appropriate.

The most common reason to settle before reaching MMI is when the at-fault driver’s insurance coverage is extremely limited. If your medical expenses already exceed the available liability policy limits and there are no additional sources of recovery, such as underinsured motorist (UIM) coverage or other liable parties, accepting a policy limits settlement may be in your best interest.

Settling prior to reaching MMI may also be warranted when your treating physicians have a clear understanding of your long-term prognosis and can reasonably estimate your future medical expenses before you have technically completed treatment.

Resolving a case before reaching MMI should be viewed as an exception, not the rule, and should only happen after a thorough evaluation of your case by an experienced personal injury attorney.

State Laws Matter: Handling Claims in Las Vegas vs. Chicago

Although Nevada and Illinois both allow injured victims to pursue compensation after another person’s negligence causes an accident, each state has its own legal rules that may affect your claim.

Both states have a two-year statute of limitations for most personal injury claims, meaning you must initiate a lawsuit within that timeframe to preserve your right to pursue compensation. While it is important to be aware of this deadline, it also highlights the fact that you should not feel pressured to accept the insurance company’s first settlement offer because you have plenty of time to negotiate a fair settlement.

Medical billing practices and alternatives can vary among states, making it important to work with an experienced personal injury attorney who can explain your options to you. For example, if you carry MedPay insurance in Nevada, you may be able to rely on your own coverage to cover medical bills while your case is pending. Medical liens, referred to as Letters of Protection in Illinois, are another option to help ease the financial burden victims often struggle with after being injured in a personal injury accident. These alternatives reduce the financial pressure that often leads accident victims to turn to pre-settlement loans or consider settling too soon.

Finally, it is equally critical to understand each state’s comparative negligence laws because they often have an impact on settlement negotiations. The amount you ultimately recover may depend upon your percentage of fault, making a thorough investigation and careful presentation of the evidence especially important.

How a Personal Injury Lawyer Protects Your Recovery Process

An experienced personal injury lawyer does much more than simply negotiate with the insurance company. Your attorney will aggressively protect you and your future throughout your recovery by acting as your voice, coordinating medical care, gathering records, and documenting your daily life and work. Eventually, your attorney will evaluate your damages and calculate the value of your claim, including future bills and lost earning capacity.

Insurance companies have teams of lawyers protecting their profits. You need an elite team protecting your future. Schedule your free consultation today.

FAQs

What happens if I need surgery after I have already signed a personal injury settlement?

You will be responsible for paying for the surgery out of your own pocket.

Why is the at-fault driver’s insurance company pressuring me to settle my claim right now?

Because if you settle quickly you may not know the true value of your claim.

What does Maximum Medical Improvement (MMI) mean in a car accident case?

You have reached a point at which further improvement is unlikely with additional medical treatment.

How do I pay my medical bills in Las Vegas or Chicago while I wait to finish my treatment?

Options for paying your medical bills include using MedPay, medical liens, or Letters of Protection, among others.

Can my personal injury lawyer stop debt collectors while my case is still open?

Your attorney may be able to stop debt collectors with a cease and desist letter and/or using a medical lien.

How much does a personal injury attorney cost if I don’t have money to pay upfront?

Nothing. We only charge you a fee if we win your case.

Is it illegal for an insurance adjuster to call me directly if I have a lawyer?

No. Once you are represented by an attorney, the insurance adjuster is required to contact your attorney directly.

Will my settlement amount be higher if I wait until my doctor completely discharges me?

Typically, your settlement amount will be higher if you wait until your doctor discharges you and you have a complete picture of all treatment to date as well as expected future treatment needs.

Should I Settle Before Finishing Medical Treatment in Las Vegas or Chicago?