The insurance company for the driver who caused your car accident is trying to help you by settling your claim as quickly as possible so that you get the money you need to pay bills and provide for your family, right? WRONG! It does not matter if you are filing a car accident claim against another driver’s insurance or your own insurance policy — signing a release of liability now could cost you thousands of dollars.
What is a Release of Liability? Should I Sign It?
When you are injured in a New Orleans automobile accident, the insurance for the other driver is liable for any damages up to the policy limits. It would seem logical and fair that the insurance company would pay you the true value of your accident claim up to the policy limits; however, that is not always the case. Insurance companies are “for profit” companies meaning they are in business to make money. One way insurance companies make a profit is by receiving more money in premiums than they pay in claims. Therefore, the insurance company will do everything in its power to reduce the amount of money it pays on you claim. One way it does this is by rushing you to a quick settlement to obtain a Release of Liability.
When To Sign A Release Of Liability
When you settle an accident claim, you are required to sign a Release of Liability before the insurance company will release the funds. A Release of Liability absolves the insurance company and the other driver from any further liability for the accident. In other words, once you sign a Release of Liability, you cannot seek any further monetary payment from either party. The Release of Liability will contain a clause stating that you agree to waive any right you have to bring a lawsuit regarding the claim.
Why Does the Insurance Company Want You to Sign a Release of Liability Early in the Claims Process?
The sooner you sign a Release of Liability the better it is for the insurance company. In some cases, an accident victim may not know the full extent of his or her injuries until much later. Extensive testing may be required to determine the nature of the medical condition. Signing a Release of Liability before you fully understand what future medical treatment you will require is a very big mistake. If you discover after signing a Release of Liability that you require major surgery and months of physical therapy, you will not be able to collect reimbursement for your medical expenses and lost wages.
Insurance companies push accident victims to settle as quickly as possible to minimize what they will have to pay. Many companies will offer a quick settlement in hopes that the accident victim needs the money and will not consult with a NoLA car accident attorney prior to signing the Release of Liability. It is never in your best interest to sign any documents until you have consulted with an experienced vehicle accident attorney.
Is the Insurance Company Pressuring You to Sign a Release of Liability?
If you have been injured in a motor vehicle accident in New Orleans or the surrounding areas, call the Olinde Firm 1-800-587-1889 to schedule a free consultation with one of our car accident attorneys. We have your best interest as our top priority and we know how to fight big insurance companies that are trying to cheat you out of the compensation you deserve for your damages. Call us today to discuss how we can help you and your family get the justice you deserve.