What is a Car Accident Settlement Agreement Form?
A car accident settlement agreement form is a legal document used to formalize the end of a dispute between two parties involved in a vehicle collision. The purpose of this form is to provide a clear and mutually agreed-upon resolution to the incident, typically after negotiations have taken place. This document serves as a final agreement on how damages, such as medical expenses and vehicle repairs, will be compensated to the injured party.
The car accident settlement form is often used when the parties prefer to resolve their differences without engaging in a costly and time-consuming lawsuit . Once the agreement is reached, the form is signed by both parties. It commonly includes details such as the date of the accident, the names and contact information of all parties involved, descriptions of the accident and damages, and the agreement on the compensation amount. It is a binding contract that can be enforced in court if necessary.
It is important for the injured party to carefully review the terms of the agreement before signing to ensure that all damages are accurately addressed. Once signed, the car accident settlement agreement form can be a crucial document in closing the case and moving forward with life after an accident.
Essential Components of a Settlement Agreement Form
Car accident settlement agreements should be just that, agreements. Written agreements to settle a claim or series of claims. But far too often the vast majority of our clients tell us just before signing that the insurance company says they have to sign their form and that all it does is agree to pay them money for their injury/loss. Clients sign this without reading the document or their claim file. And this is despite the fact that they are very intelligent people.
We have never seen an insurance company written car accident settlement agreement that is fair to the claimant. Sometimes they are not that far off and can be construed as being fair, but if it is not full and final, who knows what the practical result will be when someone attempts to enforce the contract one day in the future?
No matter how simple they may look, there are key elements to a settlement agreement form. The first of which is usually the definition of who is being released. This should include all parties that could be included in the lawsuit, but don’t be surprised if the insurance company sides with the defendant against you when it comes to how to best define that party.
If the defendant was working at the time of the accident, his or her employer may also be included in the insurance company form, with the defendant releasing all claims against the employer and vise versa. This is rarely advantageous.
The form will also include a release of all claims against the insurance company. A general release would mean all claims against the insurance company for all accidents in the future are released as well, not just the specific car accident claim. Many insurance companies have been known to insert these general release clauses in all their forms lately.
It is not uncommon for the insurance company to insert indemnification provisions, whereby the insurance company will provide a defense of any claim made by the defendant against the claimant, if the defendant did something wrong that the insurance company now wants a full release from.
The payment terms may be very favorable for the insurance company and allow for a long period of time for it to have to pay the claimant, which may be problematic if the claimant needs the money in a short period of time.
Finally, the insurance company will usually want the claimant to agree to indemnify the insurance company against claims of any third parties, like Medicare and Medicaid, or any hospital making a claim. Given the statutory liens that are in place and the rules about additional liens of a third party potentially having to pay the lien from the settlement proceeds, you may be better off not indemnifying the insurance policy.
These are just a few of the key elements of a settlement agreement form that you may experience. A close reading of the settlement agreement form and your claim file can help you identify the issues as they come up.
Benefits of Using a Simple Form
One of the major advantages of using a simple agreement form is the clarity it provides to both parties regarding their respective rights and obligations. When there is a well-drafted form in place, with accurate descriptions of the compensation being paid, the obligations being discharged, and the release language, there is less opportunity for misunderstanding between the parties. Particularly in situations where there is not a lot of money involved, and the person making the payment is likely to be frustrated or angry about having to do so, there is an opportunity for reflection and consideration of whether to continue the relationship, or to simply walk away from it.
A simple agreement or receipt will usually allow a problem to be solved much more speedily than would a formal settlement contract containing terms that are more heavily negotiated. As mentioned above, a simplified agreement or receipt will often painfully and intimately remind the person making the payment of their obligation, so that they will be willing to continue to satisfy the obligation as quickly as the recipient is healthy enough to accept it.
When there are few or no lawyers involved, it is possible for both the payer and the payee to view the situation as being friendly, cooperative, and easy to handle. Without the lawyers involved, things have a way of working out quickly and almost automatically for people who just want to get along. As a result, the number of disputes that need to go to trial in these situations is very low.
How to Customize Your Settlement Form
A generic settlement form will likely contain some language that is not specifically applicable to your accident. For example, many law firms will use a form intended to close out all possible legal claims against the defendant, even when that is not appropriate. So, in order to customize a generic form for your case you will want to remove language like:
Despite your desire to settle with a particular defendant, there may be other defendants who you have not yet discovered. You should never agree to release a defendant who you are not certain is solely liable for your harm.
This is particularly important when it comes to medical providers. Even if you are confident that you don’t owe any money to your healthcare provider , your intention to not pay them anything out of your settlement may not be clear. Your medical provider may argue that you agreed to pay them all that you owe Chicago Personal Injury Attorneys which would be anything up to 25%.
If you have an attorney, it is advisable that you have him or her review any settlement form. The example agreement above basically confirms that the Defendant/Insurer doesn’t have to do anything else as it relates to your accident.
That could mean no payment to your medical provider or nothing for additional pain and suffering issues. And even worse, it means you can’t sue that Defendant (or Insurance Co.) again for the same incident.
Mistakes to Avoid
There are many common mistakes we see people on both sides of the aisle make. First, and perhaps most importantly, not having the complete and accurate name of the other side as well as the correct policy information. Under Georgia law if you sue the right person or company at the wrong address your statute of limitations will be expired on the actual right person/company. Second, many insurance company’s attempt to change the language of the agreement slightly to sneak in a general release of liabilities. Make sure once you sign the Agreement you have not agreed to release the other side from claims you never intended to release them from. – an example might be you settle the case with the driver’s insurance company who rear ended you but you never signed something that released your uninsured motorist carrier from the case. Lastly, and perhaps the most common mistake we see, involves blindly trusting the insurance adjuster on the proper amounts for all of your damages.
Legal Considerations and Need for Legal Help
In many cases, an accident settlement form can be signed and submitted by the parties on their own. However, there are instances in which a party might be better off having an attorney deal with a claim. When an injury is serious or when fault is in dispute, for example, an insurance company might be more difficult to deal with than it would normally be. Furthermore, legalese can be confusing, even to someone with a highly technical background, and an attorney can clarify any misconceptions. An experienced auto accident lawyer in Orange County can also speak on behalf of their client and ensure that the client’s interests are protected.
Beyond these times where an attorney is recommended , there is significant variation in the factors that go into a given car accident settlement form. Some forms will require that the relevant date be written at the bottom, while others will want a signature at the bottom of the page. A common feature of all forms is a release of liability. The wording changes slightly from one form to another, but the concepts do not: The releasing party will agree not to pursue the party being released for any debts or injuries they have suffered as a consequence of the car accident. While this is reasonable when an injured party wants to settle out of court, it can cause significant problems if the party releasing liability is unable to anticipate future consequences of their injury.