QuestionHello,
I was involved in a car accident a few months ago, on my birthday. I was rear-ended on the highway. My car went spinning in to the medium and was considered a total loss. It was only two years old. The other drive was found completely at fault, but this was not determined right away. I settled with my insurance company for the cost of my car and my medical bills. The other driver's insurance has taken over and my insurance is working with them to get money back for themselves, and I have opened a pain and suffering claim with the other driver's insurance.
At the time of the accident, I was taken to the hospital and had an x-ray done on my neck and a CAT scan down on my abdomen for pain. I was given ibuprofen for the pain when nothing severe was found. Two days later I went to my primary care doctor because I was still in intense pain. He ordered an x-ray for my ribs thinking they may have been cracked, but they were actually bruised. He gave me muscle relaxers and prescription pain killers. I missed two days of work and was in pain from this accident for weeks.
I live in a no-fault, but my medical bills exceed the $2000 threshold for a pain and suffering claim.
My total medical bills were over $6,000 and the cost to replace my car was $16,500. While I understand these dollar amounts may not be a way to measure pain and suffering, the insurance company has offered me $400 for my claim against them. I may be wrong, but I see this to be an awfully low dollar amount and I'd like your opinion.
Thank you.
AnswerHello Cal,
They have offered you what is commonly referred to as a "cashout". The procedure is designed to settle with mildly injured parties, usually for out of pocket expenses. There is nothing wrong with this practice as long as it is used ethically and fairly. Basically, they want to settle with you for a minimal amount before you retain an attorney.
I cannot actually evaluate your injuries without a complete review of your records. Will you suffer permanently? Could there be complications? What is the actual value of your pain and suffering? These are all valid concerns.
Broadly speaking, cashouts should be reserved for very minor injuries that resolve completely in a short period of time. It would not appear that this is the case with you.
My suggestion to you is to consult with an experienced personal injury attorney. If you settle on your own, you might be signing your rights away only to discover later that your injuries or damages are worse or longer lasting than you expected. Once you agree to the cashout there is no going back.
Let the attorney determine if your injuries exceed more than a simple cash settlement. Personal injury attorneys will confer with you before you make a final decision to retain them. Get all the facts, then decide.
Here is a post from one of my blogs that explains the cashout and its potential problems in a little more detail.
http://www.floridaautoinsurancecentral.com/2011/08/03/bodily-injury-settlement-b
Hope this helps.
Jane Pytel
http://InsuranceExpertAdvice.com
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.com
