If you have had an accident you may be presented with numerous pieces of information from your auto insurance company or from the auto insurance company of the person who hit you. You may be given an accident car claim form, an accident report form, or any number of other such documents. You may also be offered a settlement from the insurance company. If you get a settlement agreement from the insurance company, then you will have to decide whether you want to sign that form or not.
Should You Sign a Settlement Agreement?
If you sign a settlement agreement, you will essentially be agreeing in writing to take the lump sum cash offer that the insurance company has made. The settlement agreement should clearly detail exactly what the terms of the settlement are- when you are going to get the money, for example, and how much of it you are going to receive. If you sign this settlement agreement, then you are giving up all of your legal rights to sue regarding the car accident. You will not be able to recover any additional money from the insurance company for damages arising from that same incident.
Before you sign the settlement agreement form, you must make absolutely certain that you know the full extent of your injuries. Some injuries, such as soft tissue injury and traumatic brain injury, may not become apparent until after the car accident. Other times, an injury that appears minor or seems like it will heal won't- what if, for example, the concussion you had turned out to cause a slow brain bleed or the fracture in your arm doesn't set right? If you have signed a settlement agreement and the injuries turn out to be worse than you thought, you are still stuck with the original agreement--- you can't go back and say you made a mistake. Get thoroughly checked out by a physician and wait long enough that any hidden injuries can surface.
You also need to know the full extent of your damages. If another person hit you, the law in most states (except for no fault states) says you are entitled to medical bills, lost wages, pain and suffering and emotional distress damages. Make sure the settlement offer is enough to compensate you for all of these damages you'd be entitled to if you sued.
Getting Help
Before you sign anything, from an accident car claim form to a settlement agreement, have an experienced attorney look it over. You don't want to accidentally give up your rights or admit to liability that isn't yours in a car accident case.
