Why do I need to sign a release before I'm paid out a car insurance claim?

"The at-fault driver's insurance company sent me a release form to sign. They said once I signed it, they would pay out the settlement.

It seems weird that I'd need to sign something before receiving the settlement. Should I sign it?"

Answer
“When you sign a release form for a car insurance company, you’re releasing them from any further lawsuits or damages once the settlement is paid out.
This is a common practice, as you are receiving a settlement and waiving your right to seek further action against the at-fault driver. Once you sign the release, you are agreeing to the amount and the contract is legally binding.
Once the insurance company receives the form, they’ll be able to pay out your settlement.
Before you sign, just be sure that you’ve received all the medical bills for your injuries and that the settlement amount will cover them. Once you sign, you won’t be able to negotiate for additional money.
avatar
Emily Maracle
Answered on May 20, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Read advice from car experts at Jerry

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free