What is a Car Accident Settlement Agreement?
A car accident settlement agreement usually involves an insurance company compensating the victim for their injuries. The insurance company can either be the defendant or liable party’s provider or the victim’s.
The agreement is made in the form of a contract containing the settlement terms for the accident. It details the financial compensation owed to the victim as agreed upon by the insurance provider and the victim.
Before signing a car accident settlement agreement, here are a few things you should know.
The first thing you should know about car accident settlement agreements is that they are final and binding once signed by both parties. This means that you can no longer change your mind or modify the terms contained in the agreement after you have affixed your signature. Otherwise, you can be charged with a breach of contract and be sued for damages.
A settlement agreement may include terms on the types of damages you are entitled to, such as economic and non-economic damages.
Economic damages are a form of financial compensation that covers the monetary losses you incurred because of your injuries. This type accounts for your medical expenses, lost wages for time off work, and other out-of-pocket costs. Meanwhile, non-economic damages account for your mental suffering, discomfort, inconvenience, and emotional distress.
Once signed, the settlement agreement releases the insurance provider from further liability. As such, you cannot file any claims arising from the accident against the insurance company in the future.
For example, if you discover more injuries after signing the agreement, you cannot file a personal injury case against the insurance company or demand further compensation. This applies even if you did not know about the injuries’ existence when you signed the agreement.
Unfortunately, insurance companies often draft car accident settlement agreements in their favor. Hence, they usually offer an amount lower than your claim’s value to settle the case.
In this instance, hiring a personal injury attorney may be in your best interest. Your lawyer can advise you on your possible options so you can get the compensation you deserve. Meanwhile, if you have not yet completed your medical treatments, it’s wise not to sign the agreement. You may be entitled to bigger compensation when your medications are completed.
You may be considering taking your case to court if you think the settlement offer is too low. While this may be a possible remedy, another alternative is mediation, conciliation, or arbitration. These are types of an out-of-court settlement process called alternative dispute resolution (ADR).
ADR can be an option if you want to negotiate a higher settlement amount for your claim. Besides being cheaper than litigation, it also disposes of a case within a shorter time.
Once the insurance provider proposes a settlement amount, you can always negotiate if you think the offer is too low than what you’re entitled to. If you have a personal injury attorney, they can negotiate on your behalf to make sure that you get compensated for all your injuries, physical and emotional.
Car accident settlement agreements are a faster way to resolve a car accident dispute. However, this mode may not always be appropriate. This is why it is important to know how the process works before signing a settlement agreement so you can be guided in your decision-making.
If you have been involved in a car accident and need an Irvine injury attorney to work your case, reach out to us at RMD Law. Our experienced lawyers are ready for the tireless representation you deserve.
Contact us today for a free case evaluation!
Since being admitted to the California Bar in 2012, Aria Miran has successfully and aggressively settled hundreds of personal injury claims. Aria is an expert in car accidents, motorcycle accidents, truck accidents, dog bites, and slip & falls. He also operates at the cutting edge of the law by holding insurance companies responsible for their bad faith handling of insurance claims.
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