What the release gives up
A car accident settlement agreement typically releases the other driver, and often the vehicle owner, from all claims arising from the crash, including injuries you do not yet know about. Some releases are written more broadly than the deal you agreed to, naming additional parties or claims. Read the description of who is released and what is released. If you have a claim against someone who is not part of the settlement, make sure the language does not reach them. A release usually covers the claim as a whole, so a settlement for injuries can also end any claim for property damage unless the document says otherwise.
Terms people overlook
Many releases include a promise that you will pay any liens out of the settlement money and protect the other side if a lienholder comes after them. Confidentiality clauses appear in some agreements. If Medicare is involved, the agreement may address its interests, including future medical expenses. In New York, settling with the at-fault driver without your own insurer's consent can jeopardize an underinsured motorist claim, so that consent is often sought before signing. New York also has rules on how promptly payment must follow a signed release in many cases. If any part of the payment is for something other than the physical injury itself, such as interest, its tax treatment can differ, so ask before you sign rather than after.
Reviewing it with us
We read the agreement against what was actually negotiated and point out anything that goes further. We check that liens have been identified and that your own coverage is protected. If the injured person is a child, or the claim is for a death, court approval is generally required before the settlement takes effect. You sign only when you understand every term. If anything in the draft looks different from what you were told, we raise it with the other side before the document is signed.
