Five Things To Know About Car Accident Settlement Agreements

Even when they are just fender benders, car accidents are stressful. You always want to know whether or not everyone is safe.

What Is A Car Accident Settlement Agreement?

A settlement agreement for a car accident – also known as a “release” or a “waiver” – is a document intended to resolve the parties’ potential claims against each other.

Typically, a car accident settlement agreement includes the following details:

  • Date and location of the incident are included in the description.
  • Claims for bodily harm, property damage, and other non-economic damages.
  • (In certain instances, insurance companies create separate auto accident agreement forms for bodily injury and property damage.)
  • Parties, including their names and contact details
  • Payment information, including the amount the insurance company is paying for the release of claims.

In a typical settlement agreement, an insurance company compensates the driver who was injured by its insured. In exchange, the accident victim absolves the insurance company and the at-fault driver of all liabilities arising from the collision. In order to receive compensation, the driver who was not at fault must sign a document prepared by the insurer of the at-fault driver. ‘

It can be tempting to agree to such terms. You may believe that signing the form will save you the time and money of filing a lawsuit and hiring an attorney. However, by signing this agreement, you create a legally binding document. Unfortunately, the insurance company may benefit more from this document than you, the injured party.

Here are five things you need to know about auto accident settlement agreements before you sign them.

1. Car Accident Settlement Agreements Cover All Claims

After a car accident, adrenaline may prevent you from recognising the severity of your injuries. If you sign a car accident agreement before you realise you have a back or neck injury, for instance, you waive your right to pursue a claim for those injuries.

Wait until you’ve been evaluated by a physician before signing any settlement agreement. You may not know the extent of your injuries until then.

2. Car Accident Settlement Agreements Are Final

A signature on a settlement agreement cannot be reversed or revoked. Once both parties sign a contract with an insurance company, it becomes a legally binding agreement that can be enforced in court.

For instance, if you discover after signing a contract that you could have sued the at-fault driver for both strict liability and negligence, but only sued for negligence, you are precluded from pursuing further legal action. If you discover that one of your injuries is significantly worse than you believed when you signed the agreement, you are not eligible for additional compensation.

In New York, there is a filing deadline for legal cases. You have only three years from the date of the accident to file a personal injury claim. Although we recommend that you file your claim as soon as possible, you should not let the other insurance company pressure you into signing a contract.

3. Car Accident Settlement Agreements Cover All Parties

Some automobile collisions involve multiple vehicles and drivers. Consequently, multiple drivers may share liability for the accident, or a faulty airbag may have caused injuries.

A settlement agreement for a car accident absolves all other parties — both known and unknown — of responsibility for your car accident claim. When you accept a settlement, you must sign a “release” form waiving your right to pursue further claims against the at-fault driver and anyone else involved in the accident.

4. You Can Negotiate Your Settlement

Typically, insurance companies offer a low initial settlement amount. The insurer can save a substantial amount of money if it can obtain a signed agreement for the “low ball” amount before the signer realises the actual value of their claim.

The insurance company’s initial settlement offer is not a final offer. In many instances, a counteroffer can result in a settlement that is higher.

5. You Need to Know the Value of Your Claim

Under stress, one can agree to things without giving them the careful consideration they merit. The insurance company of the driver at fault counts on this inclination.

Here is what the other insurance company will not disclose.

Victims of accidents are entitled to compensation for the following:

  • medical bills (now and in the future) (now and in the future)
  • lost earnings due to missed work
  • pain and suffering and additional losses.
  • car repairs

It can be difficult to determine the value of an accident claim. An experienced personal injury lawyer can help.

Our team at AbramsLaw Group, PC can determine if the insurance company’s settlement offer is fair by calculating the maximum compensation for your claim.

After reviewing the details of your accident and the settlement agreement, we will advise you on whether to accept the settlement or file a lawsuit for damages. If you decide to file a claim, we will help you gather information from other drivers, passengers, and witnesses.

Speak with A Car Accident Lawyer Before You Sign a Settlement Agreement

Remember that signing a “release” form “releases” the at-fault driver and the at-fault driver’s insurance company from liability for your accident.

After a car accident, AbramsLaw Group has the knowledge and experience to assist you in obtaining the compensation you deserve. We are well-versed in automobile settlement agreements and the tricks employed by some insurance companies.

We offer a free consultation with no obligations so that you can learn more about us and we can learn more about how we can assist you.

Do not sign a car accident settlement agreement before consulting an attorney. Doing so could jeopardise your legal rights and your financial future.

Contact Our Personal Injury Law Firm

Contact Abrams Law Group for a free consultation if you’ve been hurt in an accident and require legal assistance.

Abrams Law Group
104-70 Queens Boulevard, Suite 502
Forest Hills, NY 11375
(718) 997-9797

Follow us on Instagram and Twitter for settlement updates

Leave a Comment

Your email address will not be published.

Scroll to Top