Understanding the Cash and Keep Settlement Amount

By Teletalk Desk

If you have been involved in a personal injury case, you may have heard of the term “cash and keep settlement amount.” This settlement type has become increasingly popular among insurance companies and lawyers because it allows both parties to avoid costly litigation. In this article, we will take a deep dive into what the cash and keep settlement amount is all about.

What is a Cash and Keep Settlement Amount?

A cash and keep settlement amount refers to an agreement that involves an injured party receiving a lump sum of money from their insurance company or the at-fault party’s insurance company. The purpose of this payout is to compensate the victim for any losses sustained in an accident. Unlike other forms of settlements, such as structured settlements or periodic payments, the cash and keep settlement gives the plaintiff full access to their money immediately.

Cash and Keep Settlement

Parties Involved in Cash and Keep Settlements

There are two main parties involved in a cash and keep settlement: the plaintiff (injured party) and the defendant (the at-fault party or their insurance company). A plaintiff’s attorney negotiates with the defendant’s lawyer on behalf of their client. Once both parties have agreed on a fair amount, they will sign a contract that releases the defendant from any further liability related to the accident.

Benefits of Cash and Keep Settlements

Cash and keep settlements offer several benefits compared to other forms of settlements:

  • Immediate Access to Funds: As mentioned earlier, one of the significant advantages of cash & keep settlements is that plaintiffs receive their money immediately after signing off on an agreement.
  • Cost savings: Litigation can be expensive for both parties involved. Plaintiffs may incur legal fees, while defendants could pay even higher legal fees if they lose their cases. Cash & Keep agreements can help to avoid these expenses, making them more cost-effective for both sides.
  • Flexibility: The lump sum payment received by plaintiffs offers them the flexibility to use the funds in a manner that best suits their needs. For instance, they can use money from cash & keep settlements to pay off medical bills, cover lost wages, or invest in other opportunities.
  • Finality: Once both parties have agreed on a settlement amount and signed off on an agreement, the case is closed. There are no further legal proceedings related to that accident.

How Cash and Keep Settlements Work

To better understand cash and keep settlements, it’s essential to know how they work:

  1. The injured party files a claim with their insurance company or the at-fault party’s insurance provider.
  2. The insurance company of either party may evaluate the claim by requesting a medical report from the plaintiff’s doctor.
  3. Before settling, plaintiffs may demand compensation for their losses through negotiations with their attorney and the defendant’s attorney.
  4. Once both parties reach an agreement on fair compensation for all of the plaintiff’s losses related to their accident (i.e., medical expenses or loss of income), they sign an agreement detailing what will be paid out in exchange for giving up their right to sue.
  5. The injured party receives a lump sum payment immediately after signing off on an agreement with any future legal action stopped right there as per terms of the agreement executed between both sides
  6. The defendant is released from any further liability related to the accident.

Factors That Affect Cash and Keep Settlement Amounts

Cash and Keep settlement amounts vary based on several factors such as:

  • The severity of injuries sustained by the plaintiff
  • Type of injury or illness resulting from an incident
  • The cost associated with emergency care treatment and rehabilitation leading up to the recovery process
  • Total cost incurred due to missed work hours
  • Any past precedents set forth by similar cases for instance being mentioned under different clauses like contributory negligence, comparative fault etc.


In summary, cash and keep settlements offer many benefits to both plaintiffs and defendants. They provide immediate access to funds, cost savings, flexibility, and finality of payments. However, cash and keep settlements might not cover all costs associated with an accident. It is therefore advisable to consult with an attorney before settling the amount that will be paid out in exchange for giving up their right to sue.


What is a cash and keep settlement amount?

A cash and keep settlement amount is an agreement between parties involved in a legal dispute where one party agrees to pay the other a certain sum of money in exchange for dropping the case.

Teletalk Desk

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