Montgomery County Car Accident Mistakes: Dealing with Car Insurance

In many scenarios, it can be detrimental to a person’s case to provide a recorded statement without an attorney, because a person providing the recorded statement may not understand the implications of providing the recorded statement. This is true even of statements given to insurance companies after someone is involved in a car accident in Montgomery County. Whenever someone provides a recorded statement, they should understand that the statement will be recorded and later transcribed and forwarded to the attorney who is representing the at-fault party for the accident. As a result, the at-fault party may now have evidence they can use to negate arguments made by the plaintiff and their Montgomery County car accident lawyer.

People make mistakes after they get involved in an accident because they are flustered and are genuinely worried about the safety of the other people involved. They apologize or give statements because they think it will help everyone involved reach a fair and just conclusions as quickly as possible. However, insurance companies are typically just looking out for their own monetary gain and will not be acting in the interest of the people involved in the accident.

Speaking to Insurance Companies Without a Lawyer

When someone gives a statement either to Montgomery County police or to an insurance company, the statements will be memorialized forever, both audibly and in writing. If the person providing the recorded statement does not understand that these statements can be used against them in a later date, they may not appreciate the clarity or specificity with which they should respond to the questions that they’re being asked. It’s always advisable to seek the advice of a trusted Montgomery County car accident attorney before providing any recorded statement to an insurance company.

People who are involved in a motor vehicle accident should understand that, in some car accident claims, they are pursuing a claim with their own insurance company. Oftentimes, that insurance company may believe that the claimant has a contractual obligation to provide the recorded statement. Sometimes, given the particulars of the specific claim, you may have insurance companies who are essentially compelling the injured person to provide a recorded statement with the threat of denying them coverage altogether if they fail to do so.

Why People Make This Mistake

People often provide recorded statements to insurance companies because they don’t understand how significant or important the recorded statements can be at a later date. Also, injured persons aren’t familiar with the insurance claim process. People may mistakenly believe that if they cooperate with the insurance company, it will facilitate payment of the claim. However, the fact is insurance companies will use the recorded statement and any other evidence that they can gather to deny the claim.

Cashing a Check from an Insurance Company

When a person receives a check from an insurance company, they should understand that if they cash the check, it may be considered a waiver of their ability to collect any additional insurance proceeds from that company. There are different portions of the insurance policy that offer payment for different reasons. For example, there is a no-fault portion of an insurance policy which, given certain circumstances, can make payments regardless of who is at fault for certain types of claims initially. Cashing a check issued under that provision of the insurance policy in Maryland does not preclude your ability to pursue a claim. However, execution of that check in another jurisdiction, like the District of Columbia, may affect a person’s ability to pursue a claim further.

Additionally, if a check is issued under the liability portion of the policy and that check is endorsed and cashed, then the insurance company can use that endorsement as evidence that the injured person’s claim has been satisfied by payment so they’re not entitled to any additional payment. Whenever an injured person is making a claim and dealing with a Montgomery County car accident insurance company, it really is a fairly complex and sophisticated claim process and an inexperienced person can run the risk of shortchanging their claim or barring the recovery that they’re entitled to.

Why Insurance Companies Might Issue Checks

Insurance companies can provide a check for any number of reasons. They can give a check for property damage, they can give a check under the no-fault portions of their claim, or they can give a check under the liability portion of the claim. Endorsement and cashing of the property damage check and/or the no-fault portion of the policy oftentimes does not affect the ability to pursue a claim. However, if the injured person endorses a liability check, then they could be severely prejudiced from pursuing a claim for any additional recovery.