Auto Insurance Claims: Insurance Company Settlement, claims advice, claim settlement

Question
I am in the process of waiting to sign for my settlement check and was wondering if State Farm pays for the hospital bill directly or will they send it to me in my name, along with my pain and suffering? I asked the rep that I negotiated with and he told me that they will be sending me a check for the hospital bill and my pain and suffering and my daughter's inconvenience. I just want to know if I would have to cash the check and THEN pay the hospital or would the check be sent in my name and the hospital's name? All I was really told was that I would be responsible for paying the hospital bill and that the hospital bill totaled to a little over $5,000. I wanted $2,000 for my pain and suffering and he threw in $250 for my child's inconvenience. The check should be over $7,000 if sent in my name only. I never had this issue before, but it would seem to make sense to have it in my name exclusively sense I will be the one responsible for paying it as I was told. Am I right or not? Thanks.

Answer
Hello Natalie,

Based on what you have told me, it appears the check will be sent to you in your name.  You have not indicated the insurance coverage or what state you live in, but I am going to assume that this is a bodily injury liability claim and that State Farm has admitted fault.  Under those circumstances, State Farm has no obligation to pay the hospital directly.  Their settlement agreement is with you.  In that case, you would be responsible for paying the hospital directly.  Signing for the settlement, as you describe, likely means that you are giving them a release, meaning there will be no additional payments.  For your own protection, then, make sure you do pay the hospital in full to avoid a credit and collection nightmare in your future.

Hopes this helps.

Jane Pytel
http://SolutionsForYourInsuranceClaim.com