Why Cashing An Insurance Check is a Mistake in Maryland

Cashing a check given to an individual by the at-fault party’s insurance company is a big mistake. Insurance companies use a tactic of saying they will pay for the individual’s hospital bills, and many individual’s believe that is sufficient enough. However, most people do not know that that is not the way insurance companies are supposed to operate, and that by accepting this check, there is no further entitlement to any adequate compensation.

Entering into these sorts of negotiations alone can be a big mistake. If you are overwhelmed or intimidated in dealing with an at-fault party’s insurance company, it is crucial to hire an experienced attorney immediately. The proper lawyer can provide you with the guidance needed to properly navigate these tricky waters.

Consequences of Cashing a Check

Unless the suffering individual is going to be fully satisfied with the total amount of compensation that they have been given in a short a period of time, they should never cash the check given to them by the at-fault party’s insurance company. The at-fault party’s insurance knows that they are cutting the receiving individual’s rights off to pursue anything in the future.

What people do not realize is that there is only a short window by which they can actually return that check. Not having that check cashed, and thereby not accepting it, can allow the individual to continue with the claim.

Once that check is cashed, or the amount of time an individual has to return that check has passed, then the individual has bound themselves to signing the release. Typically, the checks themselves will say, “full and final release” on them, meaning once the check is cashed the individual can no longer receive any additional medical care, or further compensation.

Insurance companies will often make this swift settlement of the claim, hoping that individuals will not realize the full extent of their injuries until the insurance companies are out of the picture. It is ill-fated to move too swiftly to accept a low sum being offered by the insurance company.

Exploring the Extent of Injuries

Many times in these cases, injuries may show up initially and with a little bit of treatment, they may feel better. However, it may be common that these injuries are ongoing. It is later down the road that these injuries come back, and many individuals are out of luck because they took the check from the at-fault party’s insurance company.

That is why it is advisable not to reach a settlement in the case, and to let sufficient time go by so that the individual can return to their normal activities for a period of time, as to know if they can act as they did previously. After sufficient time has gone by, an individual will know the nature and extent of their injuries, their recovery process. and any limitations and proper value that can be sought for compensation.

Importance of Consulting an Attorney

It is best to seek the representation of an experienced attorney who can walk you through the process, help you to understand what to expect, and advise you at every step from a legal standpoint as to what is in your best interest with regards to proving the elements of your claim to ensure maximum recovery.

Taking matters into your own hands without understanding the consequences, like receiving a check of an insurance company and cashing it and thereby cutting off your rights, is just one of the many problems that can come by not seeking counsel.