You have been involved in an accident and that accident was very severe. You may not have any broken bones but you are sore. You don’t feel right and you are just trying to get yourself back together after your accident. Now, your insurance company, Progressive insurance, is calling you and offering you a small sum of money to buy out your benefits. Why in the world are they doing this?
First, What Am I Entitled to From My Insurance Company Following My Accident?
As I have discussed in previous blogs in great detail, you are basically entitled to three major categories of benefits from your insurance company as a result of your injury:
- Up to three years of wage loss that you incur as a result of being disabled, as a result of your auto accident related injury.
- Up to three years of assistance around the house with things that you normally did for yourself prior to the accident that you are now unable to do as a result of the accident. This benefit is paid at $20 per day.
- Payment of your medical bills related to your automobile accident related injuries.
What is a “Buy Out”?
A buyout from Progressive insurance means you would be giving up all of your rights to past, present and future benefits for all of the three major categories of benefits listed above. This would mean you would be no longer able to bill Progressive insurance (your insurance company) for any unpaid wage loss that occurs as a result of time missed from work as a result of your auto accident related injuries. Furthermore, your family would not receive compensation for assisting you around the house following the accident. Lastly, you would no longer be able to bill Progressive insurance for any of your automobile accident related medical bills that are piling up following your accident. Progressive insurance would then be able to close your claim and you would be forbidden from ever making a claim for your automobile accident related injuries ever again for this accident. It is a permanent stop of all benefits period!
Why Would My Insurance Company Do This?
Progressive insurance is looking to save money. They provided you with an insurance policy that provides certain benefits following an accident. If they can get to you before you hire a lawyer, or before you understand the nature and extent of your injuries, they may be able to save Progressive and its shareholders thousands, hundreds of thousands, or even millions of dollars by buying you out of your benefits now.
It May Seem Attractive
If you have been involved in an accident and you do not believe that you will need substantial future treatment, it may seem to make sense to take the buyout. Trust me, it does not make sense. The amount of benefits that you are giving up in exchange for the very small amount that they are offering you is not worth the risk. Often, injuries do not manifest themselves until days, weeks or even months later. Accepting an offer of less than $5000 (just an example) now in exchange for giving up your right to potentially years and years of benefits makes absolutely no sense. Don’t fall for it!
An Example
As an example, if you earn $50,000 per year and you are off of work for six months as a result of your automobile accident, your auto insurance company will pay you over $21,000 in wage loss benefits alone. Additionally, during this period of time, you may receive assistance around the home that could total over $3500. Lastly, your medical bills could be astronomical depending on whether or not, you need a surgery.
Literally every week a potential client comes to me and says that their insurance company has offered them a buyout within a few weeks of their accident. Usually, these are individuals recently involved in an accident and they are coming to me and saying that they are considering the buyout. I plead with them and explain to them their rights and they universally reject that buyout. They then thank me during the weeks months and years that follow. I have had clients come to me years later and tell me that they cannot believe that they were considering a buyout given the nature and extent of their injuries that they were not aware of at the time that the buyout was offered.
Don’t Do It!!!!
There are many potential insurance pitfalls following an accident. You are vulnerable and you may not be aware of your rights. Hire me to protect you and your family from the tricks of the insurance company so that you can receive the maximum compensation that you deserve following your accident.
I look forward to helping you.
Hire an Expert
David Femminineo is THE attorney to help you with your automobile accident injury case and will help to get the maximum compensation for your injuries. Call 855-65-CRASH today. Get David Get Paid!
