After a car accident in Michigan, your auto insurance company will very likely offer you an early settlement or a “buyout”. While it may be tempting to accept such an offer, doing so will potentially leave thousands of dollars of benefits on the table.
“Put your hand over your pocket if an insurance company is offering you a quick buyout. This offer is almost invariably not in your best interest under any circumstances,” notes David Femminineo, founder and personal injury attorney at Femminineo Law.
In this guide, we will explain the first-party insurance benefits that you are entitled to after an accident, an auto insurance company’s motivation for offering a buyout, and why you should resist the urge to accept their offer.
What Am I Entitled to From My Insurance Company Following a Car Accident?
If you are injured in a car accident in Michigan, you are entitled to no-fault benefits from your auto insurance company. These benefits primarily include:
- Payment of medical expenses related to your accident.
- Up to three years of payment for wage loss that you incur as a result of being injured.
- Up to three years of payment for replacement services.
These personal injury protection (PIP) benefits are accessible to anyone involved in an accident (with a Michigan auto insurance policy), regardless of their fault for causing the accident.
What Is a Buyout?
An insurance company might offer you a buyout after an accident. If you accept this buyout, you are giving up all of your rights to past, present, and future no-fault benefits, in return for a lump-sum settlement.
Your insurance company will then be able to close your claim and you will not be able to restart your benefits. This is a permanent stop on all PIP benefits – period.
Why Would My Insurance Company Do This?
Your auto insurance company is always looking to save money. By buying out your benefits shortly after your accident, they know that you are potentially leaving thousands of dollars in unpaid benefits on the table, which they will no longer be on the hook for.
Do Not Accept a Buyout
“If you were involved in an accident and you do not believe that substantial future treatment is necessary, you might think it makes sense to accept your insurance company’s buyout offer. Trust me, it does not make sense,” states David Femminineo.
The amount of benefits that you are giving up in exchange for the very small amount that they are likely going to offer you is not worth the risk.
Seemingly insignificant injuries often progress into nagging, chronic conditions which require years of medical treatment and therapy. It does not make sense to give up your right to compensation for these potential expenses.
Talk to an Experienced Michigan Car Accident Attorney
If you were injured in a car accident, your auto insurance company may offer you an early settlement. It is crucial to reject this buyout offer and consult with an experienced Michigan car accident attorney.
An attorney will explain all of the insurance benefits that you may be entitled to and will help you get the most out of your insurance claim.
At Femminineo Law, we have been helping accident victims seek compensation from insurance companies for over thirty years. With the Accident Response Team in your corner, you can rest assured that every cent of available benefits will be pursued.
Give us a call at 855-65CRASH or schedule a free consultation with Femminineo Law today.
Get David. Get Paid.