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If you are in a car accident in Missouri, the at-fault driver’s insurance company may try to give you an early settlement and have you sign a car accident release of liability form. While the prospect of easy money might sound great, signing a release of liability form can bar you from taking any further legal action against the driver or their insurance company. The attorneys at Goldblatt + Singer always recommend you speak to a car accident attorney before signing any forms from an insurance company.
A car accident release of liability form is a legal document in which the signer agrees to release the other party from liability for the accident that is the subject of the claim. Usually, the release will include language that says the injured party agrees not to pursue the at-fault party or their insurer for past harm from other claims. Essentially, a release of liability form frees both parties from worrying about legal action in the future. The point of a car accident release of liability form is to ensure that both parties are on the same page about their settlement agreement and that the matter is resolved.
A release liability form typically comes with a settlement offer, though it can sometimes be a formality to indicate that the signer will not take further legal action. Either way, a release of liability form prevents endless litigation between the two parties.
Accident liability release forms will differ depending on the specifics of the accident, but most will include the following components:
The release form will describe the accident, including its location, the vehicles involved, injuries, and any property damage. Photos, videos, and police report documentation may accompany the document. The release form describes the accident so the parties can agree unambiguously on the circumstances.
Another section of the release of liability form will contain a fault agreement that clearly outlines which parties bear responsibility for the accident and to what degree. Signing the document means you agree with the form’s fault assignment and accept the stated version of events. Fault assignments can affect your compensation, so always have a lawyer read over fault agreements so you understand their full implications.
The settlement agreement defines the amount of compensation the injured party will receive in return for agreeing to drop any future litigation. When you sign, you agree to receive the noted amount and release the other party from any future liability for harm. You won’t be able to recover more financial compensation later, so when you sign a release of liability form, the settlement amount is all you’ll get.
Car accident release of liability forms are significant for your claim settlement because they prevent you from recovering additional compensation for your injuries. You will receive the stated amount in the agreement and give up your ability to reopen the case to pursue further compensation.
For example, if you sign a form, you might get a call from the at-fault driver’s insurance company shortly after an accident with an offer for $5,000. It might seem like a good idea to take the money now and forgo the insurance process, even if $5,000 is insufficient to cover all your losses. However, signing that form would bar you from legally pursuing the driver for additional compensation if your condition worsens and you have more medical bills.
Insurance companies may offer a settlement pending signing a release form for self-preservation. Vetting claims is an expensive process that costs the company time and resources. It is often in their best interest to offer an initial settlement upfront to avoid a longer claims process and the possibility of a lawsuit. The idea is that they would prefer to pay a lower settlement now to avoid a more expensive one in the future.
You will eventually have to sign a car accident release of liability form to receive a settlement, but it is crucial that you do not jump the gun. Signing the release forms too early can lock you into an inadequate settlement and remove any further legal paths to recovering financial compensation.
There are a few considerations that you should think about before signing any car accident release of liability form.
It is always a good idea to talk to a personal injury lawyer before signing any documents you get from the insurance company. An attorney can compare any settlement agreement amount to your total losses to ensure you are receiving adequate compensation. If the settlement is inadequate or the insurance company is unresponsive to your demands, your lawyer can take steps to initiate a formal lawsuit.
Insurance companies will do whatever they can to protect their bottom line, including undercutting your settlement with a premature release of liability form. Make sure you have a qualified attorney on your side to help you make the best decision. Contact our law firm at (314) 231-4100 or through our online form for a free consultation with a car accident attorney in St. Louis. Check out our notable cases to know why you should hire us.