You suffered injuries in a crash. You’ve filed your insurance claim, you’re still in pain, and your car may not even be drivable. Then, in the middle of handling doctor appointments and damage estimates, the car insurance company sent you a check.
It’s a surprising moment and one that often leaves people wondering:
Should I cash this? What happens if I do? Is this the end of my claim?
If you’re asking those questions, you’re not alone. Our firm regularly hears from injury victims who say, “The car insurance company sent me a check. What now?” In this post, our New Mexico and Texas auto accident lawyers explain what that payment means, whether you should deposit it, and how your rights are affected depending on where you live.
For a free consultation, please call (575) 222-1000 or send us an online message today.
Why Did the Car Insurance Send Me a Check?
It’s common to feel confused after receiving an unexpected payment. You might ask:
“Do insurance companies send you a check before settling the case?”
Here’s the truth: insurance companies often move fast when it benefits them, not you.
Sending a check early in the process is a tactic often used to:
- Close your claim before future costs appear,
- Avoid negotiations with a lawyer, and
- Pay less than what your case is truly worth.
The insurance company might label the check as a “goodwill gesture” or “initial medical coverage.” But often, these payments come with fine print or implied restrictions that affect your right to more compensation.
What seems like help now may cost you later.
What Does the Check Actually Cover?
When an insurance company sends money, it’s not always clear what it’s meant to cover. The check may have vague terms, and the letter with it may avoid specifics.
Early checks often fail to cover the following:
- Ongoing or future medical treatment;
- Remaining diagnostics, surgery, or rehab;
- Prescriptions and medical devices;
- Lost time or wages from work;
- Out-of-pocket travel and expenses; and
- Pain & suffering, stress, and emotional toll.
Many of these damages are recoverable through a personal injury claim, but not if you’ve already accepted a settlement.
Should I Cash an Insurance Check After a Car Accident?
That’s one of the most important questions you can ask after a crash.
In many cases, the answer is: not yet.
Why? Cashing the check can be seen as accepting a final settlement if it includes terms like “in full satisfaction” or “final payment.” Doing so can limit or extinguish your right to recover more, even if you never signed a single document.
Before depositing anything, speak with a personal injury lawyer to evaluate your situation.
What If the Check Is for Medical Bills?
Insurance companies sometimes send partial payments, especially early in your claim. These checks might seem to cover your initial ER bill or part of your medical care. But that doesn’t mean it’s a final settlement or that the amount is fair.
Ask yourself:
- Was your treatment completed and fully diagnosed?
- Have you reviewed what this payment does or doesn’t cover?
- Did you sign anything agreeing to the amount?
The risk? You may accept far less than your actual injury costs.
Cashing the check could block you from pursuing additional compensation, even for conditions that appear later. If you’re still wondering, “Will the insurance company send me a check for my medical bills before I finish treatment?”—yes, they might. But never assume it covers everything or ends your claim.
Understanding Insurance Check Cashing Laws in Texas and New Mexico
Whether or not you should cash the check also depends on your state’s insurance check cashing laws. Here’s how Texas and New Mexico handle it.
Texas
Texas follows traditional contract principles for personal injury settlements. That means a settlement isn’t valid unless both sides agree, typically through a written and signed document. Simply cashing a check won’t settle your case unless you’ve signed something that shows mutual consent.
But don’t take chances: always talk to a lawyer before making assumptions. Once the check clears, the insurer may argue differently.
New Mexico
New Mexico law follows the legal doctrine of “accord and satisfaction,” allowing an insurance company to argue that a claim is settled if the check includes language like “final settlement” or “payment in full” and the injured person cashes it.
So, if you cash a check stating it’s for “full and final settlement,” a New Mexico judge may view that as a legally binding agreement.
Bottom line: the laws are different in each state. Don’t make a decision without legal help.
What to Do Before You Cash the Check
Here’s what we recommend:
- Review all documents. This includes the memo line, attached letters, and any forms. Look for terms like “release of all claims” or “final payment.”
- Don’t sign anything. Even a simple form may waive your rights.
- Track your expenses. Document medical visits, lost income, out-of-pocket costs, and pain levels.
- Call a lawyer. Do this before taking any action that could settle your claim for good.
Even depositing a small check can have significant long-term consequences. Don’t lose your right to fair compensation by cashing something that only helps the insurance company.
If anything in the paperwork feels unclear or rushed, trust your instincts. The insurer isn’t on your side, but a qualified personal injury attorney is.
Don’t Settle For Less Than You Deserve
At Tawney, Acosta & Chaparro P.C., we help car accident victims across Texas and New Mexico understand what an insurance check truly covers, what it might leave out, and how accepting it too soon can cost far more than you realize.
Insurance companies often send quick payouts, hoping you’ll settle for less. We’ve seen it time and time again—and when they do, we step in, push back, and fight for the full and fair compensation our clients are entitled to.
Don’t risk leaving money on the table. Get the advice you need before cashing that check.
Call us at (575) 222-1000 or fill out our online form today for a free, no-obligation consultation, and let us stand up for the recovery you deserve.
James Tawney
James Tawney is a native of the Southwest dedicated to serving his community. He was born and raised in Arizona, where he attended Northern Arizona University and graduated summa cum laude.
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