Pros and Cons of a Quick Personal Injury Settlement

While a fast check sounds like a great deal, there are pros and cons of a quick personal injury settlement. The most obvious pro is a quick personal injury settlement pays the accident victim quickly so medical expenses and other bills also get paid quickly.

Pros of a Quick Personal Injury Settlement

A quick settlement may mean that the insurance company must speculate as to the length and severity of injuries. In the rush to settle, an insurance company must recognize an accident victim is gambling with the settlement and must offer enough money to cover possible lingering complications from the accident.

A quick settlement also means that an accident victim can get on with his life. Litigation can go on for months and even years depending on the complications of the case. A quick settlement helps a victim avoid paying court costs, taking time off from work for depositions and court appearances and lengthy discovery requests.

A quick payment allows an accident victim to immediately pay medical bills and other bills before it can affect his credit rating and before interest on bills starts adding up. It is far less stressful to have bills paid quickly than to have outstanding bills and collection companies harassing victims for payment.

Cons of a Quick Personal Injury Settlement

The speculative nature of a quick settlement can be both a pro and a con. If an accident victim takes a quick settlement, it is possible that he will have more complications, more missed work, and more damages than originally thought. When a victim accepts a settlement, he usually has to sign a document waiving his right to sue again if the victim’s circumstances change (i.e. an injury which doesn’t surface until later or lost wages for complications, etc.). That means an accident victim cannot come back to court to sue for more money after the settlement if he has complications he did not anticipate or which had not surfaced before that time. Taking a quick settlement is a gamble which can work as likely for or against an accident victim.

While no one wants to go through a lot of discovery requests with attorneys looking through medical records and bank accounts, the process might result in a higher payout for general damages than a quick settlement because the parties and the court have time to actually determine the extent of the injuries and the extent of the economic costs. A person who has complications, or who doesn’t heal as quickly as initially anticipated, may end up requiring replacement services to pay for someone to care for young children, or to do housework. A quick settlement may not ever anticipate the need for replacement services or for extended wage losses.

Getting Legal Help

Before you agree to a settlement with an insurance company, or any defendant, you should consult a personal injury attorney to make sure you are not giving up your rights prematurely. An insurance company who acts quickly may be hoping to negotiate a settlement before a victim contacts an attorney and before a victim knows all of his rights. If your settlement is a good one, an experienced attorney should tell you to take it, and if it’s not a good deal, an experienced attorney can tell you what is missing.

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