I’m planning to resolve an accident by paying the other driver directly. Since I’m at fault, I’ll be providing a personal check for the damages to help them purchase a new vehicle.
Is it enough to simply write “for accident settlement” on the check, or should I consult a lawyer and create a formal agreement? What paperwork do I need to finalize this process?
While writing a personal check to settle an accident is an option, it’s wise to formalize the process to protect both parties. Here are some steps you might consider:
Written Agreement: Draft a simple settlement agreement that outlines the details of the accident, the damages, and that you’re providing the check as full and final settlement of any claims related to the accident. This protects you from future claims.
Release of Liability: It might be a good idea to include a clause that the other party agrees not to pursue any further claims once the settlement is accepted. This is often referred to as a Release of Liability.
Check Inscription: Writing “for accident settlement” on the check is a good idea, but verbal agreements can be easily disputed. The more documented the agreement, the better.
Involve a Lawyer: Consulting a lawyer is not mandatory, but it can be beneficial. They can help draft the agreement and ensure that all necessary legal aspects are covered.
Insurance Notification: Even if you’re settling it privately, inform your insurance company about the accident and the settlement to avoid any issues with your policy.
Taking these steps helps ensure that the settlement process goes smoothly and protects both parties involved.