Auto Insurance Settlement: Sue After Accepting?

In most cases, accepting a car accident settlement means you waive your right to sue. However, there are rare exceptions to this rule. For instance, if there was no signed agreement, you can still pursue legal action, especially if you suffered severe injuries. Additionally, if you can prove that the defendant or their representative acted fraudulently or coercively, you may be able to file a lawsuit to nullify the original settlement.

Settlements are final and binding, but..

Settlements are final and binding, but there are rare exceptions where you may be able to file a lawsuit after accepting a car accident settlement. Here are some scenarios in which you may still be able to pursue legal action:

• Fraud or Coercion: If you can prove that the defendant or their representative acted fraudulently or used coercive measures to secure your signature on the settlement agreement, you may have grounds to file a lawsuit. In such cases, you can work with an attorney to nullify the release of liability and seek further compensation.
• Lack of Signed Agreement: In some cases, you may receive an informal cash settlement offer directly from the at-fault motorist at the scene of the accident. If you accept this offer without signing any paperwork, you may still be able to pursue legal action, especially if your injuries are severe.
• Underinsured Motorist Coverage: If the defendant does not have sufficient funds or insurance coverage to compensate for your total losses, you may be able to make a claim against your own insurance company's underinsured motorist policy. However, be cautious when signing a release, as it may also waive your rights to pursue additional coverages.
• Multiple Parties Involved: When multiple defendants contributed to the accident, you may have the option to sue any party that shares fault. Carefully review the language of the liability waiver, as specific wording may release all parties from future lawsuits. Consult with a personal injury attorney to understand every potential angle of liability.
• Defective Product or Manufacturing Defect: If you discover that a defect from a manufacturer or a faulty component in the at-fault driver's vehicle contributed to the accident, you may be able to file a separate lawsuit against the manufacturer.
• Bad Advice from Your Lawyer: If you believe your lawyer gave you poor advice about settling your case, you may have grounds to file a lawsuit against them for legal malpractice. However, this can be challenging to prove, and you will need to demonstrate that your lawyer mishandled your case to a significant degree.

It is important to remember that settlements are generally considered final and binding, and the ability to file a lawsuit after accepting a settlement is rare. Always consult with an experienced personal injury attorney before signing any settlement agreements or releases to ensure you fully understand your rights and options.

...you may be able to sue if you can prove fraud or coercion

In most cases, accepting an auto insurance settlement means you cannot sue for additional compensation. However, there are exceptions to this rule, and you may be able to sue if you can prove fraud or coercion.

Fraud or coercion may occur if you bribe the injured party to accept a settlement and then go back on your deal. It could also occur if you threaten the other party into accepting a low settlement. For instance, if the other party has text messages or emails from you that are threatening in nature, or if they have a bounced cheque from you, the courts may allow them to sue for additional damages. In such cases, you may also face criminal charges.

If you believe that you have been the victim of fraud or coercion, it is important to gather documentation to support your claim. This may include text messages, emails, bounced cheques, or other evidence that can prove your case. Without this documentation, it may be difficult to prove your claim in court.

If you are considering legal action, it is important to consult with an experienced personal injury attorney who can review your case and advise you on the best course of action. They can help you understand your rights and options and guide you through the complex legal process.

...you can sue another at-fault party

In most cases, accepting a car accident settlement means you waive your right to sue. However, there are rare exceptions where you may be able to file a lawsuit after accepting a settlement. For example, if there are multiple parties involved in an accident, you may be able to sue another at-fault party.

In North Carolina, for instance, you can file a product liability claim or sue another party for your wreck, as long as you are within the state's statute of limitations. However, you cannot execute a general release, as this could release all your claims against other parties. Instead, you would need to execute a joint tortfeasor release, which specifically permits you to pursue claims against other parties.

In Georgia, you can sue an uninsured driver individually, but keep in mind that most uninsured drivers do not have the financial resources to compensate you fully, even if you win the case. Alternatively, you can file an uninsured motorist claim with your insurance company, provided you have this optional coverage.

It's important to carefully review any settlement and release agreements before signing, as these documents are typically final and binding. Once you agree to the terms and accept the settlement money, you usually cannot reopen the case or file a new lawsuit against the same defendant.

...you can reject a settlement offer and still receive compensation

Rejecting a settlement offer is normal and is often the first step in a longer process of negotiation. It is important to remember that insurance companies want to spend as little time and money as possible on each personal injury claim and will therefore attempt to pressure victims into accepting a quick settlement. However, quick settlements are usually unfair to victims as the value of most accident claims is much higher than the insurance company’s first offer.

When you reject a settlement offer, you can expect one or more of the following scenarios to unfold:

• Continuation of negotiations: Even if the insurance company refuses to meet your expectations with its first offer, both parties can persist in negotiations, aiming to achieve a mutually agreeable resolution.
• Counteroffers: After you reject the initial offer, the insurance company may return with a counteroffer. This back-and-forth may continue until an agreement is reached.
• New insurance adjuster: If your negotiations reach an impasse or the insurance adjuster is demonstrating unreasonable behaviour, you can request a new adjuster. Asking for a change in the assigned adjuster could inject new momentum into the process.

If settlement negotiations stall, you might choose to escalate the matter by filing a lawsuit against the insurer. This is generally a last resort, but it begins the formal legal process. Negotiations might continue, but eventually, the lawsuit could end up in court.

It is crucial to understand that rejecting a settlement offer comes with risks and potential delays. However, it can also result in a more favourable outcome; you could secure a higher settlement or achieve a resolution that better aligns with your needs and the extent of your damages. Ultimately, the consequences of rejecting a settlement offer vary from case to case.

...you can consult a personal injury attorney

In most cases, accepting an auto insurance settlement means you waive your right to sue. However, in rare cases, you may be able to file a lawsuit even after accepting a settlement. For instance, if there are exceptions such as being defrauded, the absence of a signed agreement, or multiple parties involved.

Given the complexities of auto insurance settlements and the possibility of rare exceptions, it is highly advisable to consult a personal injury attorney. A personal injury attorney can explain your legal options, help you understand the value of your case, and ensure you do not infringe upon your right to pursue fair compensation. Here are some reasons why consulting a personal injury attorney can be beneficial:

• Expertise and Experience: Personal injury attorneys have the necessary expertise and experience to handle your case. They understand the laws that apply to your situation and can navigate the personal injury lawsuit process if going to court becomes necessary. They also have connections with experts and medical professionals who can help build your case and provide treatment for your injuries.
• Negotiation and Settlement: Insurance companies often try to settle quickly and offer lowball amounts to protect their bottom line. A personal injury attorney can negotiate on your behalf and help you obtain a fair settlement that covers all your current and future expenses related to the accident, including medical bills, lost wages, and emotional trauma.
• Protection of Your Rights: Insurance companies may try to get you to sign a waiver or release form, which could waive your right to sue. A personal injury attorney will ensure that you do not unintentionally sign away your rights and will review any paperwork to protect your legal rights.
• Evaluation of Your Case: A personal injury attorney can evaluate the strengths and weaknesses of your case and provide an estimate of its worth. They can also advise you on whether it is better to settle or take your chances with a court trial.
• No Upfront Costs: Reputable personal injury attorneys typically work on a contingency basis, which means they only get paid if you receive compensation. You won't have to pay out of pocket, and their fees are usually a percentage of your winnings, ensuring they have an incentive to get you the best settlement possible.
• Peace of Mind: Dealing with the aftermath of an accident can be overwhelming. A personal injury attorney can handle the legal details, communicate with insurance companies, and negotiate on your behalf, allowing you to focus on your recovery and well-being.

Frequently asked questions