Auto Insurance Releases: Are They Essential?

Signing a car insurance release form can be tempting, especially if you're not at fault and want to avoid a lengthy lawsuit. However, doing so may not be in your best interest. A car insurance release is a legal document where an individual agrees to waive their right to sue certain individuals or entities related to the accident. This means that if you sign a release from the other driver's insurance company, you can't take further legal action against them or the driver. Before signing, it's crucial to consider factors like getting your insurance company's permission, understanding the settlement covers all injuries and damages, and consulting an attorney to review the release.

Get permission from your car insurance company

If you've been in a car accident and it's clear that the other driver was at fault, their insurance company will likely try to get you to accept an early settlement. While it may be tempting to get some quick money, there are several reasons why you should exercise caution before signing a release.

Firstly, by signing a release, you waive your right to sue or bring any additional claims over the accident. This means that you cannot take any further action or seek additional compensation from the at-fault driver or their insurance company.

Secondly, you may not yet fully understand the scope of your losses. Some damages, such as medical bills, lost income, emotional distress, and pain and suffering, can be difficult to calculate immediately after the accident. Signing a release too early may result in you having to bear the costs of these expenses yourself.

Thirdly, there may be instances where another person or business shares some blame for the accident. In such cases, you need to ensure that the release only applies to the specific driver and their insurance company, and that you still have the option to pursue action against any other responsible parties.

Finally, signing a release without the permission of your own insurance company could get you into trouble with your insurer. If the at-fault driver has insufficient coverage, your own insurance policy may include uninsured/underinsured motorist (UIM) coverage to make up the difference. However, by signing a release, you waive your rights and those of your insurer to pursue a remedy against the other driver. Therefore, it is crucial to obtain your insurer's permission before signing a release, as failing to do so may result in your insurer refusing to pay out UIM coverage.

In conclusion, before signing any release related to a car accident claim, it is highly advisable to consult with an experienced attorney who can review the release and ensure that your rights and interests are protected.

Understand what you're signing

Signing a car insurance release form can be tempting, especially if you're not at fault and want to avoid a lengthy lawsuit. However, it's crucial to understand what you're signing before you put pen to paper. Here are some key points to consider:

Understand the Nature of a Car Insurance Release

A car insurance release is a legal document where you agree to release the opposing parties from liability. In simple terms, if you were rear-ended, signing this release would mean you can't sue the other driver or reopen the claim later. It essentially shields the other driver and their insurer from any further legal action related to the accident.

Get Permission from Your Insurance Company

Before signing, it's important to get permission from your own insurance company, especially in underinsured motorist cases. This is due to the legal concept of subrogation, which allows your insurance company to recover the difference in compensation from the other driver. If you sign a release without their permission, they may deny your underinsured motorist coverage claim.

Understand the Settlement Amount and Its Coverage

Make sure you fully understand the settlement amount and what it covers. Consider all possible injuries, damages, lost wages, and pain and suffering. Many injuries from car accidents may not show up until later, so don't rush into signing a release. Consult your doctor to ensure you've reached maximum medical improvement before signing.

Review the Release with an Attorney

Have an experienced attorney review the release to ensure you understand your legal rights and the implications of signing. They can help evaluate the settlement offer and determine if it adequately protects your present and future rights. An attorney can also advise you on whether there are any legal claims or responsible parties you may have overlooked.

Determine If Anyone Else Could Be Responsible

In some cases, more than one person or entity may be responsible for the accident. For example, in a commercial truck accident, the truck driver, their employer, and another individual driver could share liability. Make sure you understand the full picture before deciding to sign the release.

Ensure the settlement covers all injuries and damages

Signing a car insurance release form can be a risky move. It is important to ensure that the settlement covers all injuries and damages before signing. Here are some reasons why:

Your Injuries May Worsen

The shock and adrenaline after a car accident can mask injuries. Some injuries may not be immediately apparent, and what seems like a minor ache or pain can turn into something more serious that requires extensive treatment. Signing a release form too early may mean that you will have to bear the costs of future medical treatment yourself.

You May Not Understand the Scope of Your Losses

It can be difficult to calculate the full extent of your damages, especially when it comes to non-economic damages such as emotional distress or pain and suffering. Recurrent headaches, for example, may seem minor, but they could be a sign of more significant neurological damage. It is important to consult with a doctor to understand the full scope of your injuries and the potential costs of treatment before signing any release forms.

You May Need Your Insurance Company's Permission

If the at-fault driver's insurance policy has a lower limit than your losses, you may need to rely on your own insurance company's uninsured/underinsured motorist (UIM) coverage to make up the difference. However, signing a release form without your insurer's permission may violate the terms of your insurance policy and result in your insurer refusing to pay out UIM coverage.

The Settlement May Not Be in Your Best Interest

Insurance companies will try to settle a claim as quickly and cheaply as possible. They are not working in your best interest, and it is important to carefully review any settlement offer and release form with an experienced personal injury attorney before signing anything. An attorney can help you evaluate the fairness of the settlement and protect your rights.

You May Need to File a Lawsuit

If you do not agree with the insurance company's settlement offer, you may need to file a lawsuit to obtain fair compensation. This can be a lengthy and costly process, but it may be necessary to ensure that you receive adequate compensation for your injuries and damages.

In conclusion, it is crucial to carefully consider the settlement offer and ensure that it covers all your injuries and damages before signing a car insurance release form. Seeking legal advice and fully understanding the extent of your injuries and losses can help you make an informed decision and protect your rights.

Have an attorney review the release

Signing a car insurance release form can have serious consequences, so it is important to have an attorney review the release before you sign it. An attorney can explain exactly what the release says and answer any questions you may have. They can also advise you on whether signing the release is in your best interest.

• Understanding the release: An attorney can explain the legal language in the release and make sure you understand your rights and obligations. They can also review the release for any potential issues or red flags.
• Protecting your rights: By signing a car insurance release, you may be giving up important legal rights, such as the right to sue or bring additional claims related to the accident. An attorney can help you understand what rights you are giving up and advise you on whether it is in your best interest to sign the release.
• Evaluating the settlement offer: An attorney can help you evaluate the fairness of the settlement offer from the insurance company. They can assess whether the offer adequately compensates you for your injuries, property damage, lost wages, pain and suffering, and other losses.
• Identifying all responsible parties: In some cases, there may be multiple parties responsible for the accident, such as the other driver, their employer, or another business. An attorney can help you identify all potentially responsible parties and advise you on whether the release appropriately addresses your rights against each of them.
• Dealing with insurance companies: Insurance companies may try to pressure you into signing a release without fully understanding your rights or the value of your claim. An attorney can act on your behalf and communicate with the insurance company, helping to protect your interests and ensure you are treated fairly.
• Medical authorizations: As part of the release, the insurance company may request a medical authorization release, which allows them to access your medical records. An attorney can review the scope of the medical authorization and advise you on whether it is appropriate. They can also help protect your privacy and ensure that the insurance company does not use your medical history to unfairly deny or reduce your claim.

Remember, signing a car insurance release is a serious matter that can impact your legal rights and ability to obtain compensation. Consulting with an experienced attorney can help protect your interests and ensure that you make an informed decision.

Determine if anyone else could be responsible for the accident

If you've been in a car accident, it's important to determine if anyone else could be responsible for the incident. Here are some steps to help you with this process:

Gather Information at the Scene

Get the other driver's name, address, phone number, license plate number, driver's license number, and insurance information. Record the name of the insurance company and policy number exactly as it appears on their proof of insurance card. If they don't have an insurance card, ask for their insurance company name and policy number. It's also important to get the names, addresses, and phone numbers of any witnesses.

Take Photos and Document the Scene

Use your smartphone to take pictures of the accident scene, including both vehicles as they are positioned right after the accident. If you need to move the vehicles for safety reasons, take photos of the damage to each car. Additionally, take notes on how the accident occurred, including details you may forget later. If possible, make a note of any nearby homes or businesses that may have captured the collision on camera.

Contact the Police

In some areas, police authorities may respond to every accident scene, especially when there are injuries or hit-and-run incidents. Even if the accident seems minor, it's a good idea to notify the police. Most policies require notification to the police within a specified time frame, especially in hit-and-run cases.

Exchange Information with the Other Driver

Provide the other driver with your information, and vice versa. This exchange of information is crucial for insurance purposes and any potential claims.

Contact Your Insurance Company

Inform your insurance company about the accident, even if you believe you are not at fault. This demonstrates your good faith in reporting the incident and can aid you if the other party's insurer denies responsibility or if their insurance was invalid at the time of the accident. Your insurance company may then seek reimbursement from the at-fault party's insurer through a process called subrogation.

Decide if You Need to File a Legal Claim

If the at-fault driver's insurance company denies your claim or is difficult to work with, you may need to seek legal advice. A personal injury lawyer can help you navigate insurance laws and protect your rights. Keep in mind that if you hire an attorney, they will take a portion of any settlement you receive.

File a Claim with Your Insurance Company if Necessary

Even if you are not at fault, you can file a claim with your insurance company for payment of damages and injuries if you have the appropriate coverages. If you have collision insurance, file a claim with your carrier, and they will cover the cost of repairs or the total loss of your vehicle. If the other driver is uninsured and you have uninsured motorist coverage, you can file a claim for your vehicle's damage.

Frequently asked questions