When you are in an accident and file a claim, either your own insurance company or the insurance company against whom you are filing your claim will likely ask you to sign an insurance release. Before signing anything, it is within your best interest to review the document thoroughly and consult with an experienced attorney.
What is an Insurance Release?
An insurance release is a legally binding document that releases an insurance company from liability contingent on you accepting a settlement amount. Indeed, it is a document that says that you can no longer pursue your claim against the insurance company because they are offering you a check. If you sign it, you will be legally barred from recovering damages for the same injury from the same party in the future.
Why You Should Never Sign an Insurance Release Without Legal Counsel
Signing an insurance release without legal counsel is a dangerous thing to do. Not only does it mean that your claim is over, but it may also mean that you are accepting far less money that you actually deserve. Insurance companies are infamous for their tendency to lowball settlement offers in hopes that an individual without a legal background will take the offer and walk. But unless the settlement offer fully addresses the extent of the things that you have lost, you should negotiated for a higher damages amount.