A few days after an accident, while you are still stressing about a rental car and missed work, the insurance adjuster might call with “good news.” They want to send you a quick check—maybe $1,500 or $2,000—to cover your “inconvenience.” It feels like a lifeline when cash is tight.
The Myth: “I should take this money now to pay my immediate bills. I can always ask for more money later if I need surgery.”
The Fact: This is a classic tactic called “Settle and Release.” That check comes with a document attached: a Release of Liability. By cashing the check or signing the document, you are legally agreeing that the case is closed forever. If you wake up three weeks later with numbness in your hands requiring a $50,000 neck surgery, you cannot ask for a penny more. You settled for $2,000, and the insurance company won.
The Pro Tip: Follow the MMI Rule. Never accept a settlement offer until you have reached Maximum Medical Improvement (MMI). MMI is the point where your doctor says you have healed as much as you are going to heal. Only then can we calculate the true cost of your past bills and future needs.
Conclusion: Patience pays. Do not let financial pressure force you into a cheap settlement. We can often help you handle creditors while your case is pending.
