If you’ve been involved in a car accident in California, you may be entitled to compensation. You may be able to recover money for your injuries, property damage, and other losses. Most car accident cases are resolved through a settlement. A settlement involves one party (usually the insurance company) agreeing to pay the injured party a certain amount of money. In exchange for this payment, the injured party releases the at-fault party from their legal claim.
Understanding the terms and conditions of a settlement agreement is crucial. Below, we outline five important things accident victims should know about settlement agreements.
1 Settlement Agreements Are Final
Once a settlement agreement is signed, it is legally binding. You typically cannot change your mind or go back on it. The settlement agreement marks the conclusion of your legal claim. This means you release the defendant and their insurance company from further claims.
The chances of invalidating a settlement agreement are slim. Absent fraud or misrepresentation, you will likely be stuck with your agreement. This is why speaking with an experienced attorney before agreeing to a settlement is vital. You will want to fully understand what you are agreeing to and whether it is the best option for your situation.
2 Settlement Agreements Cover Legal Claims You Didn’t Make
One of the key components of a settlement agreement is the release of claims. In this section, you give up the right to pursue any additional legal actions against the defendant arising from the same incident. Even if you didn’t specifically assert all possible claims, the release generally means you give up those claims, too.
For example, you may have only sued for personal injuries. However, your settlement could cover other claims you may have had. If you later discover additional legal actions you could have taken, you may no longer be able to pursue them. This is why you should work with an experienced personal injury lawyer to ensure you are pursuing all available legal remedies.
3 Settlement Agreements Cover Injuries You Didn’t Know You Had
Another aspect of a settlement agreement is the release of any potential future claims related to injuries or damages. This means that if you sign a settlement agreement after your car accident and later realize you have a more severe injury than you initially though, you may not be able to seek further compensation.
The defendant or their insurance company will want to ensure they are paying for all damages simultaneously. It’s important to fully assess the extent of your injuries and potential long-term effects before accepting a settlement.
4 Settlement Agreements Can Include Other Parties You Didn’t Know You Could Sue
Some settlement agreements may extend to other parties you hadn’t originally considered. In California, the settlement agreement might include additional parties beyond the defendant. For instance, your agreement may include other insurance companies or even other liable individuals or entities. This is why it is important to carefully review the terms of your settlement agreement.
For instance, if you settle with one driver’s insurance company but later discover that another party is partially responsible, you may find that your settlement prevents you from pursuing further claims against those other parties. This makes it essential to work with a personal injury lawyer. Your attorney can ensure that no one is left out of the settlement agreement. You will have confidence that all potential avenues for compensation are explored.
5 Settlement Agreements From Insurance Companies Are Often Unfavorable
It’s important to be aware that most settlement agreements from insurance companies are written to favor the insurance company. They aren’t drafted to favor you. These form contracts often include provisions that make it harder for you to dispute or challenge the terms. For example, some agreements may include mandatory arbitration clauses or provisions that allow the insurance company to control how, when, and to whom they release settlement funds.
Because insurance companies often offer settlement agreements with terms that are heavily skewed in their favor, it is critical to have an experienced attorney. \
Speak With an Encino Car Accident Lawyer Before Signing a Settlement Agreement
Due to the binding nature of settlement agreements, it’s crucial to have legal representation before you agree to anything. You may only have one chance to get it right. Make sure your case is in capable hands. At JUSTICENTER Personal Injury Lawyers, we help car accident victims and ensure you are fully informed about the terms before signing. Call our office at 818-907-3230 to learn why accident victims trust our lawyers to deliver justice and fair compensation. We offer a free consultation.
