Signing a Car Insurance Release? Here are 5 Things to Consider

Car accidents can be brutal physiologically, psychologically and financially. The good news is, the insurance company of the driver who caused the accident may reach out to you to settle any claim you have.

Now you may be thanking the stars because you will be able to pay any medical bills along with getting your car fixed as good as new! However, you will have to sign a “release document” before being compensated. What constitutes a release document and should you even sign it?

What Exactly is a Release?

A release or sometimes known as a waiver, is a legally binding document that absolves the responsible party from any sort of liabilities. It allows both sides to end any legal dispute.

If you sign a release, you essentially forfeit the right to sue any involved party or individual. In motor vehicle insurance cases, it means the insurer of the driver responsible for the accident is free from all future litigations. The upside to this is that you get a settlement check.

Release documents can be of several types like Medical Release, Property Damage Release etc. They are all unique and have different implications. Depending on your case, you may be eligible for one or more of these. 

What to Consider Before Signing a Release?

Motor insurance companies may reach out and offer you a settlement. But before you sign anything there are some things you should take into account. Signing a release may be tempting but before you do any such thing, here are five points to keep in mind. 

1. Attorneys are Your Best Friend

An injury attorney can help you a lot by explaining everything and answering your concerns. They are experts in motor insurance cases and may even help to bring in a larger settlement. You will be surprised by how much a set of expert eyes can make a difference in your case.

Remember, your losses may be more than just medical injuries and a broken car. There may also be loss of productivity, psychological trauma and more. Claims for such losses may be nullified in their entirety if you sign the release form without wasting time. Unless you are absolutely certain of the damages and what they are worth, be sure to hire an injury attorney and have your case reviewed.

2. Be Absolutely Sure of Everything you are Signing 

Legal documents are usually lengthy and at first glance they may even scare you a bit. However, they are usually not that complicated. Fortunately for insurance companies, most people do not take the time to read them through. 

Have you ever tried to install a software and instead of reading through the terms and conditions, you just skipped to the end and pressed ‘Agree’? Release forms are like that expect a lot riskier to simply put your signature on. 

As long as you understand the key points like settlement offer amount and its associated details, you have nothing to be worried about. Also keep in mind that motor insurance representatives are not your friends. They will try to get the best deal for their company and you should be wary of that. Any injury attorney will tell you the same thing.

3. Understanding Settlements and What They Cover

During the aftermath of the accident you may be tempted to take whatever settlement the insurer offers. Similarly you have medical bills to pay and fix up your vehicle. More often than not, the deal is not a fair one. Insurance companies tend to resolve claims quickly with as little money as possible.

Additionally, you should keep in mind that the extent of your losses may not be apparent soon after the accident. You may be eligible for greater compensation later down the road. This is why it is in your best interest to fully understand what you are owed before you agree to any settlement offer.  

4. Work with Your Insurance Provider Before Signing Anything

Generally it is a good idea to let your insurance company know that you are interested in signing a release document. Subrogation is an important legal concept in the field of insurance. This concept is especially true in the case of underinsured motorist cases.

For example, you got into an accident and the opposing driver’s insurance does not cover all your losses. He/she is an underinsured motorist and if your insurance policy covers such damages, they are liable to make up the difference (upto the limit of your UIM). Your insurer will invoke the subrogation policy and attempt to make up the difference directly from the opposing driver.

Simply speaking, your insurer is working on your behalf to get any extra reimbursement from the opposing party. If you sign a release form your insurance company loses that right and may even deny any claim you have in regards to the underinsured motorist.

5. More Than One Party May be Responsible 

The driver directly responsible for the accident may not be the only one liable for your injuries. If applicable, the employer of said driver may also be liable and be legally bound to compensate for your losses. For example, the responsible driver may have been overworked by his/her employer which may have led to the accident. Other drivers may have been indirectly responsible for the accident as well. 

All in all, you should ensure every party is accounted for before signing the release form. Otherwise you may be losing out on a larger compensation by signing it early. 

Signing a release form can be a daunting task and if it is your first time, it can even be scary. Every case is unique and as such you should exercise full caution before committing to anything. Be informed to stay covered.