Car Accident Agreement Letters Explained
In the aftermath of a car accident, emotions can run high and tensions can be elevated. To settle disputes amicably between the two parties, a car accident agreement letter is often recommended. It is important that you have an understanding of what this is so you can use it effectively. Essentially, this letter is a legal document that aims to resolve all disputes between representatives of either party. While this document is not mandatory by law, it is critical that the two parties involved in the accident have some version of this document to finalize the deal.
The goal of a car accident agreement letter is to prevent the two parties from going to court to handle adjust the matter. It can also be very helpful for the insurance company or insurance provider to have this document on file so that they are aware that the matter is handled.
This type of letter can be very beneficial because it helps to settle any disagreements prior to heading to court for mediation . Even if both parties agree that each was at fault, they can still come to an agreement on how to handle it, such as whether insurance will cover the cost of repairs or whether either individual will need auto insurance to cover the damages.
Car accident agreement letters should be used in cases involving any of the following: The main goal is to establish a contract or agreement between the two parties so they can skirt a lawsuit and handle the situation out of court. This is very helpful to them legally, but even more beneficial to them personally, as no one wants to be embroiled in a lawsuit.
While it may seem like the two parties involved in a car accident should be able to reach an agreement without much conflict or confusion, it can actually be quite a challenge. The car accident agreement letter is the most beneficial tool to help settle the case and move both parties forward.
Essential Components of an Agreement Letter
The agreement letter that is drafted in the wake of a car accident must be comprehensive and contain all the terms agreed between the parties. The following are the key elements that the parties should ensure are in the letter:
Name and Address of the Parties – The parties to an accident, as well as any other entities with claims arising from the accident, must be identified. This includes additional insureds banks, lien-holders and Guarantors if collision or property damage coverage was purchased.
Circumstances of the Accident – A description of the accident, vehicle type and ownership and registration details, as well as insurance carrier names and insurance policy numbers, must be clearly spelled out to avoid future misunderstandings.
Consideration for the Release – The amount of the settlement and any conditions including a time limit within which the settlement proceeds must be delivered must be agreed upon and included in the letter.
Prescribing Jurisdiction and Waiver of Jurisdiction – The choice of law that will apply to the letter should be specified and a sentence creating a waiver of objection to the jurisdiction if a lawsuit is brought should be included.
Obey Any Statutory Requirements – The letter must comply with any applicable statutory requirements. For example, insurance laws in some states require the insurer to advise claimants if their proposed settlement will not preserve their independence, which is to say that it will not preserve sufficient funds to cover future medical costs and wage loss, if necessary. A sentence addressing this issue will be included.
Steps to Write a Car Accident Agreement Letter
How to Draft an Car Accident Agreement Letter
- The Information Q&A. Thoroughly prepare for the agreement letter by gathering as much information from the car accident as possible. Be sure to ask questions concerning the circumstances surrounding the car accident, including the date, time, and location of where the accident occurred. Be sure to be clear on what led up to the car accident, what actually happened during the car accident, and what resulted from the car accident. Likewise, gather as much information about the other driver and vehicle as possible.
- How to Write It. Start by either printing or typing the car accident agreement letter. To break up the text, organize the letter into sections or paragraphs. Include the car accident date, time, and location, as well as the name of the other driver and information about their vehicle and insurance policy. You may want to add information about any witnesses to the car accident or passing vehicles or persons who stopped to help at the scene. Be sure not to speculate or address fault in the letter; even the slightest hint of fault may compromise your car accident agreement.
- Include Paperwork. Include copies of photographs you took at the accident scene, your driver’s license, registration and proof of insurance, and anything else, such as repair bills, that you may have that concerns your car accident, car damage or medical treatment if applicable. If you are able to get a hold of police reports or hospital bills, include that information as well.
Legal Implications and Common Mistakes
As with any other contract, it is essential that the agreement letter fully comply with the law to be considered valid and enforceable. For instance, if the consideration for a contract is illegal, the entire contract is void. It’s also important that the agreement be in writing so as to comply with the Statute of Frauds, a law that specifies certain contracts must be in writing to be enforceable, including agreements that cannot be completed within a year, lease agreements for more than one year, land conveyance contracts, and contracts to pay another’s debt.
Even if the car accident agreement letter complies with the law, it may still be deemed unenforceable by the legal system if it includes an unconscionable provision, one that is largely one-sided, oppressive, or inequitable. The letter must also include provisions such as:
If the car accident agreement letter does not contain these provisions, it could be deemed invalid and therefore unenforceable by the court if necessary. Also, sometimes the court will abrogate a clause such as a limitation of liability clause if it finds that the client was not properly informed of that clause.
When to Consult a Lawyer
Given the potentially complex nature of car accident settlements, the involvement of attorneys is often beneficial. In cases involving severe injuries, permanent disabilities, or death, insurance companies will likely be heavily involved. When the circumstances are more complex than normal, or there is some dispute regarding who is at fault, it is generally advisable to consult a lawyer. If you have lost income and the prospect of a long recovery, you should strongly consider a lawyer to negotiate on your behalf.
In cases where the other party is deemed to be at fault, especially after a police report has been filed, there may be a case of lines of liability being blurred . Particularly if the other driver has been cited for violating a law (e.g., drunk driving, hit and run, etc.), the case will almost undoubtedly end up in court, and having a lawyer involved may be necessary.
Your insurance company may push you to use their preferred medical professionals and get you to agree to a settlement figure that is not reasonable. In these cases, or if you simply don’t feel right about signing with the insurance company without having a lawyer review the agreement first, it’s always a good idea to consult a trusted attorney.
Sample Car Accident Agreements
The best way to understand how to write a car accident agreement letter is to see a few high-quality examples. The following examples will either help you craft a comprehensive agreement or give you enough information to help an attorney draft one for you. Remember that every situation is different, and these samples may not be relevant to your situation. Nevertheless, they are still great examples of comprehensive car accident agreements.
Sample Car Accident Agreement Letter
Sample Insurance Agreement Letter
Sample No Fault Agreement Letter
Sample Fault Agreement Letter
Sample No Insurance Agreement Letter
Sample No Car Agreement Letter
Sample Car Agreement Letter
Mary Bloggs
1234 Elm Street
Some City, AB 0000
A6B 8CD
22 September 2016
Mr. Robert Smith
INSURANCE CO 12345
456 Main Road
Some City, XY 0000
A0B 1CD
SIMPLE INSURANCE CO
RE: PARTIAL RELEASE FROM ALL INSURANCE COMPANIES INCLUDING FIRST AND LAST NAME AKA FIRST NAME LAST NAME
Dear Robert,
This is a very simple case. I know it is a no-fault case, but there is another insurance company involved and I am willing to sign a release that the other party was fully at fault. I want $10,000, and I want it very quickly. I have spoken to my own insurance company about this. They have assured me that I will receive the car value which is $15,000 within 7 working days of today’s date. For the damages and injuries that I have suffered, $10,000 is peanuts.
I have also stated to my own insurance company that I would like their opinion on your offer. Being reasonably certain that I will hear back from them within the next week, I have made contact with your office. I trust that you will process this matter in a prompt manner and I will be hearing from my insurance company without delay.
I look forward to seeing you after I have spent all of the $10,000. Boom.
Kind regards,
Mary Bloggs
Frequently Asked Questions About Car Accident Agreement Letters
Why would I need a car accident agreement letter?
A car accident agreement letter is often needed to officially agree on how the aftermath of a car accident will play out with another involved party. An example of this might be having two parties agree on how to pay for the damages caused by the accident.
Do I have to be in a disagreement to use one?
No. Car accident agreement letters can be used even when both parties agree on how the accident should play out from here.
What benefits come with using a car accident agreement letter?
There are many benefits associated with car accident agreement letters , including: making sure any agreements made between the injured and the other driver are kept, putting everything down in a legal document for review at a later date, and making sure there is a mutual understanding on how the matter will be resolved.
How does this differ from a demand letter or notice letter?
Both demand letters and notice letters are documents meant to inform another party of any legal recourse a person can take, whereas a car accident agreement letter must be mutually created and agreed on between both parties.