“Unfortunately, the total of the other not-at-fault person’s damages are going to impact how much the insurance company is going to offer you to settle the claim.
They pay the damages on a pro-rata basis from the property damage liability coverage on the at-fault person’s policy.
That means, if your damages total $5,000 and the other not-at-fault person has $10,000 in damage, the insurance offer would be $1666.67 for you and $3333.33 for the other party (your damage/total damage x PD limit).
When you sign the release, you are giving up your right to pursue the other party or their insurance for the rest of the damage in exchange for the payment being offered.
If you refuse to sign the release, you can pursue the other party directly for the damages, but you cannot sue the insurance company because they are only obligated to pay up to the policy limits. “