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Should You Sign an Insurance Release After a Car Accident?
Your phone keeps buzzing, medical bills are stacking up, and the insurance adjuster wants you to “wrap things up” right now. That pressure feels real, especially when a rental car is draining your savings. At Shlosman Law Firm in New Orleans, we meet drivers in this exact spot every week. Our goal today is simple: to provide you with straightforward facts about insurance release forms, so you can decide when, or if, signing makes sense.
What is a Release of Claims Form?
A release of claims form is a legal document that trades your right to future recovery for a one-time payment. Sign it and you agree the settlement on the table covers every loss tied to the crash. The paper usually spells out the date of the accident, the amount being paid, and a clause stating you waive “all past, present, and future claims.”
Once that signature dries, the case is closed, and you cannot take the other driver or their insurer back to court if new problems appear.
Everyday items listed in a release include:
- Names of the parties and policy numbers
- The dollar figure offered for property damage, medical bills, or both
- A broad statement releasing the at-fault party and any related businesses from any further duty
Because the form ends your legal path, reading every line matters far more than the quick relief of a check arriving.
Reasons to Pause Before Signing a Release Form
Signing too early can cut off a recovery that you haven’t even considered yet. Below are several situations that call for a careful pause.
Unclear Extent of Injuries
Some conditions can remain hidden for days or weeks after a wreck. Soft tissue strains, mild brain injuries, or even minor fractures might not show up until the adrenaline of the crash fades. If you settle during that quiet period, later scans, surgeries or therapy sessions come out of your pocket. Visiting a physician promptly and tracking symptoms provides a clearer picture of the actual costs.
Potential for Worsening Condition
Your claim should cover future setbacks, not only the bills you already see. Back injuries can require later fusion surgery, and concussions can develop lingering headaches or mood changes. Many doctors wait for “maximum medical improvement,” meaning your condition has leveled off, before declaring final costs. Settling before hitting that point risks shortchanging yourself if complications surface.
Inadequate Settlement Offer
Insurers stay profitable by limiting checks. The first figure on the phone is often a fraction of what your claim is worth. Adjusters also rely on software that averages injuries, yet overlooks your unique pain, job duties, or lifestyle changes. A lowball opening bid is almost expected, not a sign you must accept.
Unclear Accident Details
A rush to settle can bury facts still undiscovered. Perhaps the other driver was on the clock for a delivery company, or a faulty airbag exacerbated the injuries. A lawyer can track cell phone records, skid marks, or black-box data that boosts your payout. Without a full investigation, you might miss another liable party with a larger policy.
Subrogation Issues
Your own health or auto insurer may want money back from whoever caused the crash. That process is called subrogation. If you sign a broad release, you may block your carrier from recovering those funds, which could result in the denial of future treatment or an increase in your premiums.
When Signing a Release Might Be Acceptable
Not every release is harmful. A few scenarios make signing reasonable, once you confirm the paperwork is limited and fair.
Property Damage Only
If you walked away without a single bruise, agreeing to a property damage-only release can speed up body-shop repairs. Just verify the document states it covers damage to the car alone, with no language about bodily injury.
Reaching Maximum Medical Improvement
After your doctor confirms that your healing has plateaued and all bills are settled, a release may provide closure. Before signing, have a lawyer crunch the numbers to confirm that lost wages, prescriptions, and future therapy are covered.
Consequences of Signing a Release and Condition Worsen
Courts rarely undo a clear release. Picture settling a month after a fender-bender for a stiff neck. Six months later, an MRI shows a herniated disk pressing on your spinal cord. Because you already waived claims, the cost of surgery, rehab, and missed work would land on you, not the insurer. Overturning the release would require proof of outright fraud or a clerical mistake, a steep uphill battle.
Key Considerations Before Signing
Create a quick checklist to identify unfinished business. If any of the items below remain unanswered, hold the pen.
- Your physician declares treatment is complete and symptoms have stabilized.
- All current medical invoices, as well as projected future care, are in writing.
- Calculations of lost wages, reduced overtime or job retraining are finished.
- Non-economic damages like pain, sleeplessness, or anxiety have been valued.
- An attorney has reviewed the settlement language to identify any hidden traps.
Checking each box can spare you thousands in out-of-pocket costs down the road.
Comparison of Waiting for Versus Signing Early
| Potential Outcomes: Sign Early vs Wait | ||
| Issue | Sign Within Days | Wait Until the Case is Fully Evaluated |
| Medical Costs | Only known bills paid | Past and future treatments covered |
| Lost Income | Initial wage loss included, later time off excluded | All work disruptions are calculated |
| Liability Findings | Hidden parties escape scrutiny | A full investigation may add new defendants |
| Peace of Mind | Fast check, lingering worry about setbacks | Slower check, stronger financial safety net |
As the table shows, patience often trades short-term speed for long-term security.
Get Legal Guidance From Shlosman Law Firm
If an adjuster is nudging you toward a quick signature, take a breath and reach out. Our team fights day in and day out for car crash victims across Louisiana. We measure every cost, challenge low offers, and push insurers until the deal matches the harm.
You can call 504-826-9427, email info@shlosmanlaw.com, or visit our website to set up a no-pressure consultation. One conversation can clarify where you stand and what your claim should truly cover. We roll up our sleeves for every client, treating your recovery as if it were our own.