
The aftermath of a car accident is likely to be a whirlwind. Going to the hospital for your injuries, calling your employer to tell them you’re unable to work until you’ve healed, reporting the accident to your insurer, and all the other steps that follow a car crash are exhausting.
That’s why you might be relieved that the other driver’s insurance company has sent you a check. You may feel like you’ve found the light at the end of the tunnel or the pot of gold at the end of a rainbow.
While it is good news that the other driver’s insurer agrees that you deserve compensation for the accident their policyholder caused, don’t cash that check yet. There are certain things you should know first that could have a huge impact on you if you accept this offer.
Ganderton Law LLC is a personal injury law firm in Colorado devoted to helping car accident victims. In this blog post, we explain why insurers send checks and what you should consider before you take the money.
Why the Insurance Company Sends Insurance Claim Settlement Checks
As mentioned, the check you received shows acknowledgement of fault from the insurance company. They are sending you a check because they believe their policyholder caused your damages.
However, the insurance check process isn’t a simple one and when an insurer is eager to settle your claim, you need to dig deeper to find out why. At their core, insurance companies are businesses, and every business is focused on its bottom line.
You may have had a pleasant conversation with the adjuster prior to the offer or issuance of the car accident settlement check. All insurance agents are trained to seem friendly and caring even though they have ulterior motives. They may be trying to pin some of the blame on you to reduce the amount you can receive. In circumstances where investigations cannot be manipulated to put some of the blame on the victim, they will often offer a check.
The desired result is that you will take the check, no questions asked, and move on with your life. In fact, many car accident victims do, only to realize some time later that the money doesn’t go very far.
Should I Cash the Insurance Check?
You may be staring at the check in your hands and asking yourself, “Should I cash the insurance check?” Remember, insurers are looking for ways to maximize their profits, and that doesn’t happen by giving money away.
It may be difficult to think about the traumatic experience you endured as a victim of a car accident. You most likely want to forget all about it and move on with your life. However, if your injuries are serious, your medical bills are likely massive. You may not be earning any income during this time or using up all of your vacation time and sick days.
It only makes sense that you’d want to cash the check when your usual monthly expenses and the expenses the at-fault driver caused you are piling up. Tempting as it may be to cash the check, it is absolutely vital that you evaluate the full extent of your financial losses from the accident first.
Signing and accepting the check will mean that you are also signing away your right to pursue additional compensation for the accident. You are not legally allowed to ask the at-fault driver’s insurer for more money nor can you file a lawsuit if you deposit the check.

What Happens to Victims Who Accept Insurance Claim Settlement Checks?
Car accident victims who are in serious accidents that cause severe or catastrophic injuries should never accept a check from the insurer that is worth a few thousand dollars. Here is what happens when you cash the checks without considering the full extent of your losses:
You Will Not Be Allowed to File a Lawsuit
Insurers must provide a waiver that includes a disclaimer stating that depositing the check relinquishes your rights to take future legal action and seek further compensation. Hence, if you accept the insurance check and cash it, you lose your rights to file a car accident lawsuit against the at-fault driver.
Your injuries may require you to undergo additional surgeries or have future medical costs that are not fully known at the time. If you cash the check, you may wind up further in the hole for those additional costs.
You’re Not Getting the Total Amount of Your Losses
Another thing you need to understand is that when you cash an insurance check following your car accident, the money the insurance company sends is generally only a small portion of your total losses. If you have sustained serious injuries, you will not be getting the full coverage you need for the medical bills or your lost wages. You might not be getting enough to repair or replace your vehicle. Any non-economic damages you may have suffered will not be covered, and signing the check means you will never be able to seek compensation for them.
Think about the costs of your hospital stay, surgery, ambulance ride, physical therapy, medications, and assistive medical devices. Now think about how much money you are losing by being unable to work. Don’t forget how the accident has caused you pain and suffering, loss of enjoyment of life, or even disfigurement. When you consider these factors, it is easy to see that the amount on the check is insufficient to make your life as whole again as it was before the car accident.
Steps to Take After Receiving a Check from the Insurance Company
Perhaps if you had a medical evaluation that revealed you had no injuries, it might be fine to accept the check from the other party’s insurer. Ultimately, before any car accident victim deposits a check from a car insurance company, they should evaluate the full value of their claim. This requires taking a hard look at the following factors:
Medical Expenses
Organize every one of your medical bills and keep detailed records of all your medical appointments. You can tally up how much you’ve already had to pay, look at anticipated future medical expenses, and find out from your doctors how long your treatment is going to last. As the victim, you are entitled to claim compensation for the medical care you have already received and any future care that is required to restore your health and well-being.
Lost Income
When injuries are serious, you may spend a large amount of time out of work as you recover. You can seek compensation for this lost income. Additionally, if you have injuries that prevent you from performing the duties of your job or hinder you from being promoted, you can seek future income losses.
Property Damage
One thing that the insurance check will likely cover is the repair or replacement of your vehicle. However, the damage may be so extensive that it lowers the value of your vehicle. Many car crash victims also do not realize that property damage applies to all property that was destroyed in an accident. You may have had your laptop in the car with you when the accident occurred and if it is damaged or destroyed, you should be compensated for the loss of your property.
Pain and Suffering
If not for the negligence of the other driver, you would not be enduring discomfort. After a car wreck, it is always ideal to keep a journal of how your physical injuries are recovering as well as how the discomfort you experience impacts your life. Along with statements from your doctors, it can show that you deserve to be compensated for your non-economic damages.

The Most Vital Step of the Insurance Check Process – Talk to a Personal Injury Lawyer
Your life is upside down and you are dreaming of a day when things will feel normal to you again. A check may seem like a dream come true but it’s likely not enough to take care of everything that has been upended in your life.
This is why it is imperative that you discuss your situation with a personal injury lawyer in Colorado Springs. At Ganderton Law LLC, we offer free initial consultations that allow you to evaluate the value of your case.
You already have one of the most crucial elements – the insurer is sending you a check because they recognize that you deserve compensation. However, to get the compensation you fully deserve, you need to calculate all the losses you’ve had along with future costs related to the incident.
This is especially true if the other driver’s insurance company tries to convince you that you were partially at fault. Under Colorado’s modified comparative negligence laws, this could partially diminish the compensation you receive. By working with an attorney, you’ll have a better chance of securing a fair settlement that will cover the expenses you incurred and allow you to finally move forward.