Car Accident Settlement Agreement

According to statistics, Georgia is among the top 5 states with the most fatal crashes in the nation. And these car accidents have life-altering consequences. 

Even if you’re lucky enough to leave the scene with your life, a car crash can take a toll on your body, causing head injuries, cognitive impairment, whiplash, limb injuries, or spinal cord trauma. As if that were not enough, you might suffer severe emotional pain, lose your income source, and incur enormous medical bills in the future. 

After the car accident, you can bring a personal injury claim to the responsible party so that they can compensate you for the damages. More often than not, they will want to settle out of court — it saves both of you considerable time, effort, and money.

To do that, you must sign a car accident settlement agreement. Below, we will discuss this document and guide you in deciding whether it’s a great option to resolve your personal injury case after a car crash.

What Is a Car Accident Settlement Agreement?

A car accident settlement agreement refers to a legal agreement facilitated by the insurance companies of the parties involved in a car crash to help them settle a personal injury claim. 

This means that instead of going through a lengthy trial that could cost you thousands of dollars, you resolve your financial dispute with the at-fault driver without going to court. 

Usually, the resolution entails the guilty party agreeing to pay you a specific amount to cover the damages. The latter can range from lost wages and emotional suffering to property damage and medical bills. 

The car accident settlement agreement shows that you have decided to: 

• Dismiss the car accident liability claim

• Resolve your financial dispute with the party responsible for your accident

• Free the guilty party from liability

To be valid, the form must contain the following information: 

• Details of the car crash: Date and location of the traffic collision. 
• Payment: The amount the guilty party’s insurance company will pay the car accident victim. 
• Parties involved: The identities of the individuals involved in the accident, i.e., the victim and the at-fault driver. Other parties include the witnesses, the defendant, the personal injury attorney, and medical professionals.
• The legal rights you relinquish after signing the car accident settlement agreement. 
• Claims: The insurance claims you’re making (for damages like property damage and physical injuries) and whether the document releases the guilty party of all or only some of them. 

The primary reason you should consider a car accident settlement agreement is that it quickly resolves the complications of a traffic collision and ensures that you’re appropriately compensated. However, before you sign the document, there are a few things you should keep in mind.

What To Know Before Signing a Car Accident Settlement Agreement

Here are 4 things to know about a car accident settlement agreement before considering one. 

1. It Is a Legally Binding Contract

Car accident settlement agreements in Georgia are legally binding contracts. In other words, once you sign the document, there’s no way out, even if you regret it later. 

Because a car accident settlement agreement is final, seek legal advice and representation before signing the form. An experienced personal injury attorney can understand and explain the legal jargon to ensure you get the best deal. 

Also, remember that signing the car accident settlement agreement means giving up your right to pursue a claim in court. Should you discover additional damages afterward, there’s little you can do about it. 

Therefore, don’t sign the contract until you’re convinced it’s the best way to resolve your injury claim.

2. The Car Settlement Amount Varies

In Georgia, the settlement for a car accident varies from one case to another. For traffic collisions resulting in minor physical injuries and minimal property damage, you could get $2,500-$25,000. 

The average settlement for traffic collisions leading to severe injuries ranges from $50,000 to $200,000 or more. 

But nothing is written in stone, and you could get an offer way below the anticipated amount. 

Here’s why. 

Typically, the insurance company is never on your team, especially that of the at-fault driver. These organizations are incentivized to offer the least amount possible on all claims. 

Thus, you shouldn’t sign the first contract the at-fault driver’s insurance company presents. Understandably, this might be tricky when you want to pay your piling medical bills as soon as possible. But being patient could get you a better offer in the long run. 

Your trustworthy car accident lawyer should negotiate with the insurance company to ensure you’re fairly compensated.  

In Georgia, the following factors will come into play when determining the car accident settlement amount: 

• The severity of your physical and psychological suffering.

• The extent of property damage the collision causes.

• The number of cars involved in the accident.

• The estimated cost of medical treatment.

• Your history, i.e., whether you have filed a car accident claim before.

• The limit and amount of insurance coverage.

• Lost wages.

• Whether you share some responsibility for the accident.

• Whether you have enough evidence to prove the damages or injuries sustained.

3. Settling the Car Accident Claim Takes Time

Undoubtedly, a car accident settlement agreement is your best option if you wish to avoid a lengthy court process. But that doesn’t mean you’ll receive compensation within a day or two. 

In Georgia, car accident settlements take anywhere between a few months and years. The time yours will take depends on different aspects of your case, such as the severity of the damages and the parties involved in the traffic collision. 

If the other driver denies liability, you might have to wait longer to receive the settlement amount. 

For that reason, it’s crucial to figure out a way to manage your living expenses after the accident. 

We understand that wondering when the money will reach your bank account can be emotionally taxing. We recommend consulting a reputable auto accident attorney to assess all the details of your case and let you know how long it could take to resolve the dispute.

4. There Could Be Challenges

While a car accident settlement agreement is the easier route to compensation after an auto accident, it might not always be a walk in the park. 

For example, the at-fault party might lack coverage, meaning you’ll have nothing to draw upon. 

In such a case, the Uninsured/Underinsured Motorist (UM) Coverage, an optional coverage provided by your auto insurance company, can protect you, guaranteeing you receive compensation for damages. 

The UM coverage can also be handy if the other driver flees the accident scene before providing their details. 

According to GEICO, every driver in Georgia must have the following: 

• Property damage liability – $25,000 per auto accident

• Bodily injury liability – $25,000 per individual 

• Bodily injury liability coverage – $50,000 per car accident 

Unfortunately, the UM coverage might still not be enough to cover all the damages after an auto accident. Even so, if the at-fault driver has auto insurance, this coverage can ensure you get a fair settlement, even if the liable party’s limits are not enough. 

What if You’re Also at Fault?

Another issue that could arise when settling your car accident claim is the insurance company discovering you also broke a traffic law and could have caused the accident. 

For instance, if you run a red light while the other driver is overspeeding, you can cause more severe injuries. As a result, you’re also responsible for the car accident. 

This means your settlement could be significantly lower than if you didn’t run a red light.

When Should You Sign a Car Accident Settlement Agreement?

Signing a car accident settlement agreement means you’re releasing the at-fault driver from all future liability. We recommend doing it after assessing the value of your claim to prevent the insurance company from undervaluing the damages. 

But how can you know how much a car accident claim is worth? It’s not that complicated. 

First, research and understand the different types of damages available in car accident claims in Atlanta, Georgia. For instance, in this city, medical expenses and lost wages are in the pool of economic damages; and the car accident settlement can cover them.

Then, you should also factor in non-economic damages, which include: 

• Emotional trauma

• Physical pain and suffering 

• Psychological injuries, such as anxiety, driving phobia, post-traumatic stress disorder (PTSD) and depression 

• Disfigurement or scarring 

• Reduction of quality of life 

Your attorney should ensure the settlement offer accounts for all damages. And only then should you sign the car accident settlement to make it legally enforceable. 

You Can Count on Us

A car accident can change your life profoundly. Dealing with the consequences of the car crash as you try to move on is overwhelming, especially if you suffer severe injuries or lose a loved one. 

At Cumberland Law Group, we understand how difficult it can be to focus on the car accident settlement process and are willing to support you through it all. Our professional auto accident lawyers can offer the quality and reliable legal representation you need for your case. 

Before you sign that car accident settlement agreement, we’ll negotiate a fair settlement on your behalf to ensure the insurance company doesn’t get away with lowballing you. Ready to seek the fair compensation you deserve? Let’s get on a call to talk through your personal injury case now.