Hidden Issues in Fast Settlement Deals

When something seems too good to be true, it usually is. This is why it’s important to have a car accident lawyer for serious injury settlements review the details of any settlement offer before accepting it. They can help identify any issues with the offer that may not be obvious, such as release clauses, gag orders, and potential taxes.

The Devil Is In the Details of a Settlement

In addition to creating a list of questions to ask before fast settlements, take a close look at the fine print in an offer for the following issues:

Not All Expenses Are Included

Once a settlement is finalized, you cannot go back to the insurance company or at-fault party for any expenses that pop up later. It can take time for you to realize the full extent of your injuries and damages. If you settle too quickly, you may be left with some hefty bills and no way to pay them.

Keep in mind that initial settlement offers are usually only a small portion of your actual long-term costs and claim potential. Insurance companies know what your claim is worth and will do their best to negotiate a steep discount to protect themselves from paying more. They also know that victims of an accident are vulnerable financially and emotionally following a traumatic event, and will push for you to settle quickly to take advantage of the situation.

Release Clauses That Handcuff You, the Victim

If an insurance company makes a fair settlement offer, it wants to ensure the case is closed once full payment is made. However, the release clause may be too broad. By signing, you might be releasing them of any claim you might have in the future, even if it is about a completely unrelated issue or incident that hasn’t happened yet. 

Gag Orders That Come Back to Bite

Insurance companies don’t want word to get around about the terms of a settlement and will include a confidentiality clause in your settlement agreement. If it is overly restrictive, a person associated with you could accidentally say something that violates this clause. This could put your settlement agreement into jeopardy, exposing you to heavy penalties and the chance of having the agreement (and the payments you’re owed) canceled.

Potential Taxes and Liens

If possible, structure settlement payouts as non-taxable. Alternatively, add money to the settlement amount to cover the taxes you will owe. 

Payout Schedules that Don’t Meet Your Needs

If there is a delay, you may need to ask how lawyers prove fault in court and prepare to start new (and expensive) legal proceedings to force payment. It’s better to get the full settlement amount in a single lump payment when the agreement is finalized and signed.

Let Gage Mathers Protect You from Hidden Issues

Don’t let an insurance company bully you into accepting a settlement offer before an experienced attorney from Gage Mathers reviews all its terms and conditions. We will ensure that you don’t forfeit any of your rights or settle for less than you deserve!

About the Author

Joseph D'Aguanno

Guided by the belief that being a highly skilled specialist in a narrow field is better than being ordinary in everything, Joseph “JD” D’Aguanno leads Arizona’s best personal injury law firm in Phoenix, AZ. Having extensive cross-training in pre-litigation negotiations and trial lawyer skills, with decades of experience, JD strives to provide clients with the most valuable legal services a personal injury lawyer can provide. Under his direction, Gage Mathers Law Group is an award-winning personal injury law firm providing aggressive representation to victims of a car accident, medical malpractice, dog bite, motorcycle accident, and other injurious events. Gage Mathers is trusted by thousands of lawyers and clients throughout the country because of their reputation for getting clients the maximum compensation they deserve.

Years of experience: Over 24 years
Bar number: 020421
Location: Phoenix, AZ
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