Car accident victims will face many losses, which will be compensated by the insurance company. However, many cases are not that simple. The problem is that the settlement money the insurance company offers will not be adequate to cover the victim’s losses.
Victims are not aware of this fact and accept the first offer made by the insurance company. This is why it is important to let a car accident lawyer access the settlement offer.
They can analyze whether the offer is fair or not.
In any personal injury case, once you accept the offer, you will be asked to sign the release form. Many don’t understand the importance of the release form. They sign it without fully understanding it.
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What is a release form?
The release form finalizes your acceptance of the settlement offer made by the insurance company and releases the defendant and the insurance company from future liability.
This is the final stage of the personal injury claim. Once you sign this form, you cannot take any further action.
Factors to consider before signing the release form
Making careful considerations before signing the form is important. Read on to learn about the factors you need to consider before signing a release form.
Is the settlement money adequate to cover all your losses?
The first consideration you should make is to check whether the settlement they offer is enough to cover your losses. This is because once you accept the deal, you cannot claim for more.
So carefully go through your damages, calculate your losses again, and check whether the final number matches the settlement offer.
If things don’t add up, do not sign the form.
Did you get your insurance company’s permission?
It is necessary to let your insurance company know about the accident, even if the accident was not your fault. Not doing so may result in a breach of contract and compromise your case.
The reason for this is due to a concept called subrogation. The concept is that your insurance company will match the difference when you are involved in an accident with an underinsured motorist.
So obtaining their permission before signing is mandatory.
Did your attorney review the release form?
Signing the release form before your attorney reviews it is a mistake. As said, the release form is final. You cannot take any action after signing the release form.
A lawyer understands the full extent of your losses better than you. They can help you understand the terms of the insurance company better.
You are releasing the at-fault party from future liability
You need to understand that once you sign the form, everything is done. You cannot take action against the at-fault party after that.
Remember that by going to court, you can punish the defendant more. So speak with your lawyer and discuss whether to settle or file a lawsuit.
Understand that settlements are negotiable
You don’t have to accept the first offer made by the insurance company. You can negotiate with the insurance company to get a better deal.
However, insurance adjusters are experts at negotiation. So it is better to let your lawyer handle them. They will present the relevant evidence and get you a better offer.
Only accept an offer when your lawyer says so.
Final thoughts
Car accidents can cause injuries like TBI that will cause many losses in the future. So, do not get overexcited about the settlement money and sign it without analyzing it properly.
Ask your lawyer to review the settlement offer and sign it only if they approve.
An insurance adjuster may look like a friend, but they are not. They are not trustworthy, but your lawyer is. So always believe what your lawyer says over insurance adjusters.
Hope this blog post helped you learn about the considerations you should make before signing a release form.
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