What is a Settlement Agreement for Car Accidents?
What is a Car Accident Settlement Agreement?
It is an agreement between the injured person and the insurance company to settle any claim the injured person has. An injured person can present a claim for damages after suffering losses due to an automobile accident. A settlement agreement waives any and all future claims the injured person has against the insurance company. Typically, this is only a motor vehicle insurance company. This is usually because the injured person is settling their claim and releasing their insurer from making excess payment , not that the claim being settled falls under underinsured or uninsured motorist coverage. The purpose of the settlement agreement is to close the claim. To make sure that the claim is final and cannot be asserted against again. It is to avoid any future claims after signing. It is important for both parties to have a settlement agreement. The injured party is getting compensation for their claim. The insurance company is trying to settle the claim and walk away. Both sides are benefiting from the existence of the settlement agreement.
Key Components of a Settlement Agreement Template
When finalizing the terms of a car accident settlement, each party enters into a civil contract dictating that certain conditions have been met and remedied under which they are satisfied to forgo litigation. Some typical elements of a settlement agreement template include: Identification of the Parties: The identification of each party to the agreement, under which an accident victim will sign their name and provide information such as their address, social security number and phone number. Being thorough is necessary so that if any questions arise later on the identifications can be independently verified. If a minor child or incapacitated adult is involved in a claim, the agreement should have the capacity for a guardian or personal representative to sign on their behalf. Description of Injuries: The injuries giving rise to the claim are typically described alongside the medical care received, e.g., "injured in an automobile collision on December 4, 2013 when Plaintiff was rear-ended in stopped traffic on Highway 121, received treatment for neck pain and headaches with chiropractor, Dr. Jason Salkeson, who referred for MRI, and orthopedist, Dr. Jerry Baker, with pain management referral, Dr. Mark Womack." Payment Amount: The amount of damages agreed to in the written settlement agreement is also one of the key elements necessary to make a valid binding agreement, and should be expressed in numerical form. For example, "Plaintiff accepts $20,000 as full and final settlement of all claims asserted in this lawsuit and from any other incident including release of all liability for Defendants and their insurers, agents and assigns, related to motor vehicle collision of December 4, 2013." Payment Terms: The payment terms can be either lump sum, installment based or a combination of both, and should clearly state expected months or years of payment and payment amounts to be made. For example: "Defendant shall pay Plaintiff for their injuries and damages in 25 equal monthly installments of ($800) and a lump sum payment of $5,000 will be made on the third anniversary of the date of this agreement." Liability Clause: In some cases, a liability waiver is included in the settlement agreement, where a plaintiff agrees to relinquish any future rights to make claims or recover additional money from the other party for futur damages arising out of the auto accident.
How to Adapt a Settlement Template to Your Situation
When presented with a generic car accident settlement agreement, it will be up to the victim to customize the contract to their own individual case and circumstance. For example, when using the negotiation settlement agreement template, you will need to modify the laws that apply to your jurisdiction. Laws governing motor vehicle accidents and settlements can vary greatly in both form and substance depending on the laws of the state and jurisdiction where the accident occurred. The car accident victim will also have to ensure that the terms of the settlement are appropriately modified to compensate for their specific injuries, medical care, and current and future pain and suffering needs.
There are two basic types of car accident settlement agreement forms: While you may understand the general concept of the settlement without having to read the agreement in advance, the actual written document will usually contain many more details and specifications about your unique situation and the legal agreements that are necessary to protect you from losing your right to sue the negligent party later on if complications do arise that were not (or cannot be) properly resolved through the settlement.
Common Legal Issues and Mistakes
One of the most important things to bear in mind when drafting or reviewing a settlement agreement is that you cannot simply copy one from the Internet or ask the other party to prepare an agreement that reflects the terms discussed. The reason for this is simple: Your agreement needs to be in compliance with Georgia law, and only a Georgia personal injury attorney has the expertise required to ensure compliance.
If you, as the injured party, draft an agreement without having done any research on how much your claim is worth, how liens will be handled and what clause should be included and omitted, you may be buying a case to trial when a settlement would serve your best interests. Likewise, if you have negotiated a dollar amount and the insurance adjuster produces an agreement without having done any research, you may end up signing away rights that could prevent you from collecting future medical bills or medical assistance under the federal Medicare program.
Advantages of Employing a Settlement Template
In addition to saving time and money on legal fees, using a settlement agreement template can make the whole process of settling an injury claim simple and hassle-free. A good example of a settlement agreement template is the one from the LegalZoom website and it’s available in both Word and PDF formats. The settlement agreement template is not only easy to understand, but it’s also easy to use. As far as readability, there are no complicated legalese phrases here. Everything is clearly outlined so there is less room for misunderstandings or missed information. Also, the agreement template appears to be comprehensive and covers all bases . In fact, because a standard settlement agreement template is so thorough, requiring a signature from the injured party and the insurance company, as well as space for up to five days’ notice as to when the settlement agreement will become effective, many people may not realize that every state has its own statute of limitations that dictate the appropriate time frame for how long it should take for an injured party to sign a settlement and submit it to the court for finalization. Moreover, the settlement agreement template saves both time and money. It covers all the necessary bases and leaves no doubt about what to expect from either party once the form is filled out. Because of this, the injured party and their attorney can avoid many unnecessary back-and-forths with the insurance company. Instead of wasting time and money reviewing the document for issues after it’s been submitted to the court, the injured party and the insurance company can save hundreds and thousands of dollars on legal fees by signing the settlement agreement template without having to schedule multiple meetings with their attorneys.
When to Seek Legal Counsel for Settlements
In cases of clear liability and minor damage to the vehicles and no injuries, a lawyer may not be entirely necessary. However, for a general framework and to strike the right tone, a consultation with a lawyer is the best option. The lawyer can draft a demand letter and take other important steps for an accident claim. It’s an even better idea to have a lawyer draft the settlement agreement, for the reasons stated below.
If you don’t have a lawyer, a lawyer familiar with handling personal injury claims may be able to help. A lawyer can advise on how to ask the insurance company for compensation, the right amount to request, what to say that’s not overly alarming but gives the right amount of urgency, and what other information is important for present themselves. A lawyer can also stay abreast of who accepts the blame, any other damages that need to be addressed, and when to accept a settlement offer. A lawyer can also review the settlement agreement before you consent to sign it.
Consulting with a lawyer about being compensated for injuries may be a good idea, especially if they’re serious. It may be a good idea to consult a personal injury attorney if a person:
Injured people who want to sue the person who wrote the insurance on the car may want to hire a lawyer, especially if it appears that an accident victim is going to have many medical expenses. Those serious injuries may require negotiation with a medical provider on a settlement of the medical bill. These debts can become burdensome as they’re often sold to collections agencies. Injury victims may still have a balance after these negotiations, due to interest, etc. So a personal injury attorney can help keep track of these.
A personal injury attorney can send communications to an at fault party or their insurance company to keep them honest, so they don’t try to lowball an injured party or lay blame on them when it’s baseless. A lawyer will review evidence, assess its veracity, and even hire experts to get involved if necessary and help combat an insurance company that has skeletal insurance coverage.
Where to Locate Trusted Templates
Navigating the vast landscape of legal resources can sometimes be daunting, especially when seeking trustworthy templates for documents related to car accident settlement agreements. However, there are several reliable sources where individuals can access these resources.
Many law firms provide free sample settlement agreement forms or templates on their websites. This is particularly common amongst firms that specialize in personal injury and auto accident cases. For example, some law firm blogs or resource centers feature templates that can be downloaded for personal use. While these templates are often tailored to the specific state in which the law firm operates, they still serve as a useful starting point for those involved in an accident.
Legal service platforms are another excellent resource for car accident settlement agreement templates. Websites like LegalZoom and Rocket Lawyer offer a variety of personalized legal documents and templates, including settlement agreements. Some of these sites require a subscription or a small fee for service , but many offer free trials and 30-day satisfaction guarantees. The templates found on these platforms are often easy to customize according to the situation and the laws of the specific state or region.
Public law libraries also provide access to a range of resources, including car accident settlement agreement templates. Most public law libraries maintain a collection of commonly used legal forms, including those for settlement agreements. These libraries are often staffed with knowledgeable librarians who can help you locate the specific forms or templates you require.
Finally, some government agencies may offer template agreements for settlement of claims against them. For example, state Departments of Motor Vehicles or local county clerks’ offices may provide templates for the settlement of automobile accident disputes in an effort to facilitate resolution on their part.
Regardless of where you find your template, though, remember that it’s always best to have a professional review it.