What Is a Release of Liability Form in a Car Accident?

What Is a Release of Liability Form in a Car Accident?

You’ll be asked to review a number of forms as you work with car insurance companies after a car accident. One of those forms might be a Release of Liability Form. It’s very important that you understand the purpose of this form and how it can impact your ability to recover the compensation you are owed.

So, exactly what is a Release of Liability Form? Simply put, this form is a legally binding document signed between a victim and the responsible party at fault (in most cases, the insurance company). This form details that a victim will waive the right to sue the at-fault party in exchange for a settlement payout. Nevada Law recognizes this agreement in the NV Rev Stat § 10.185.

After a Release of Liability Form is signed, the case is effectively closed, and victims cannot pursue any additional compensation from related to the incident, even if future unforeseen injuries arise.

What Causes Drivers To Sign Release of Liability Car Accident Forms?

The overwhelming majority of car accident victims sign a Release of Liability Form to close the claim and receive their settlement money from the accident. All insurance companies require that the settlement release form be the final step of the settlement process.

Some car accident victims may be pressured more than other victims to sign a Release of Liability Form. Insurance companies understand that some victims might be pressed for money and need to receive funds quickly.

Others might sign the form as a way to close the settlement quickly so that they can resolve the car accident and move on from the stressful experience.

How Common Are Car Accident Settlement Release Forms?

An overwhelming amount of car accident cases ends in a settlement, with very few cases going to trial. Because of this, the Release of Liability Form is incredibly common. Unsurprisingly, certain types of car accidents typically result in higher rates of the liability forms being filled out by both victims and insurance companies.

These accident types include:

• Rear-end collisions (<$5K): Release rate of 92% and the average payout is $15K and $25K (for minor) and $3K-$10K (for a fender-bender). 
• Parking lot collisions: Release rate of 87% and the average payout is between $1,000 and $10,000 (for minor).
• Side swipes: Release rate of 78% and the average payout is between $15,000 and $50,000.

Key Components of Every Car Accident Release Form

There are some key components that you can expect to find in every car accident release form. Let’s take a closer look at what those components are and why they matter.

• Parties involved: The form should clearly identify who the victim is and who the at-fault party or insurance company is. Accident release forms will detail verbiage similar to the following: “John Doe releases GEICO, NV.”
• The incident: This will include details about the accident, including the date and location.
• Payments: The payment section will include information about the exact amount that your final settlement will be. This will be written out similarly to the following example: “$5,000 final settlement.”
• Waiver: This section details that the victim waives all claims and that the negligent party is fully discharged of responsibility after the release form is signed.
• Signatures: Finally, to solidify the agreement, both parties will sign, and the release form becomes a legally binding document. Release forms are also required to be notarized as well.

When Car Accident Release of Liability Forms Become Dangerous

Although a majority of car accidents are resolved through a Release of Liability Form, it’s important to understand in full detail how signing this form can impact you and when it can become dangerous.

• Know before you sign: Have a clear understanding of your injuries.
• Don’t sign too early: Don’t sign a release form too early or before an investigation into your accident and your injuries is complete.
• Signing the wrong type of release: If your case involves an underinsured motorist, signing a full release can bar you from recovering additional compensation from your own insurance policy. In some cases, a different type of release form, a Covenant Not to Enforce Judgment, may be required. This is a partial release that allows you to pursue compensation in unique cases where an underinsured motorist was involved.

Next Steps Before Signing Any Release

There are steps that you should take to protect yourself before you sign a release form. Follow these steps if you’ve been involved in an accident and are being pressured by the insurance companies to sign a release form.

Don’t Rush

First and foremost, take your time and do not rush the process. You should report your car accident to the insurance company immediately, but you are under no obligation to sign a release form immediately, so you should make it a point to take your time to understand your accident, your injuries, and whether a release form fully covers the compensation you deserve.

Complete All Medical Treatment

After a car accident, it’s important to keep up with all your doctor’s appointments until you reach the maximum medical improvement (MMI) date — the date where your injuries are healed or won’t worsen. Additionally, you should not feel pressured to settle your claim until you fully understand the extent of your injuries.

Seek Legal Advice

The right car accident attorney will understand how to evaluate your case to determine whether the settlement offer you are receiving is fair. If it is not fair, they’ll negotiate aggressively on your behalf, collecting all relevant data and evidence to prove the compensation you are entitled to.

An attorney will also look over all your documentation to ensure all your legal rights are discussed, and you’re covered on all bases.

Schedule your free case consultation today.

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