Signing a Property Damage Release
I was recently in a car accident where the other driver was at fault. Unfortunately, they only had the minimum property damage coverage required by the state, which is $5,000. This amount won’t cover the full cost of repairs. Now, their insurance is requesting that I sign a full release that would absolve both them and the other party of further liability. What options do I have to pursue compensation for damages exceeding $5,000?
I’m sorry to hear about your situation. When facing a situation where the at-fault party’s insurance coverage doesn’t fully cover your property damage, you have a few options to consider:
Negotiate with the Insurance Company: Before signing a full release, you can try to negotiate with the insurance company for a higher amount if you can provide evidence of your repair costs. Sometimes, insurers may be open to negotiating, especially if you have compelling documentation.
Pursue the At-Fault Party Personally: If the damages exceed the coverage limit, you may have the right to pursue the at-fault driver personally. This involves filing a claim or a lawsuit against them to recover the additional costs. Before proceeding, consider whether they have the means to pay, as a court judgment is only useful if the party has the capacity to pay.
Consult an Attorney: Speaking with a personal injury attorney could be beneficial. They can review your case, advise you of your rights, and help you understand the implications of signing a full release. An attorney can also assist if you decide to pursue a claim against the other party directly.
Evaluate Uninsured/Underinsured Coverage: Check if you have uninsured or underinsured motorist coverage on your own policy. This could potentially cover the gap between what the at-fault party’s insurance can provide and the total cost of your damages.
Document Everything: Ensure you have comprehensive documentation of all related costs (repair estimates, invoices, etc.) and the accident itself (police reports, photos). This will support your case if you choose to pursue additional compensation.
Before signing anything, it’s essential to understand the implications fully. Signing a release can prevent you from seeking further recovery for your damages later, so make sure you explore all your options first.