What Rights Do I Give Up When Signing A Release

Name

Email*

Phone*

Message*

Get My Free Case Review

Confidential Case Review • No Fee Unless We Win

One of the first things I discuss with clients after a serious auto accident is the implications of signing a release. It’s a deceptively simple document, often presented as a formality, but it contains language that permanently extinguishes your rights. It’s critical to understand what you’re giving up before putting pen to paper.

Essentially, a release is a legally binding contract. In exchange for a lump sum payment, you agree to forever discharge the at-fault party – and, crucially, their insurance company – from any and all liability related to the accident. This means you cannot pursue any further claims, even if the full extent of your injuries isn’t yet known. You waive your right to sue for future medical expenses, lost wages, pain and suffering, or any other damages that may arise as a result of the accident.

I’ve practiced personal injury law in San Diego for over 13 years, and I’ve seen countless clients sign releases prematurely, only to realize later that the settlement didn’t adequately cover their needs. Trained by a former insurance defense attorney, I have intimate knowledge of how insurance companies evaluate, devalue, and deny claims, and I can tell you with certainty that these releases are crafted to protect the insurance company’s bottom line, not your well-being.

What types of claims are covered by a release?

A release isn’t limited to the immediate damages you’re aware of at the time of signing. It encompasses all claims, known and unknown. This includes:

• Property damage: Even if your vehicle damage seems fully covered, a release can prevent you from seeking additional compensation for hidden issues discovered later.
• Past medical expenses: This includes the bills you’ve already incurred as a result of the accident.
• Future medical expenses: If you anticipate ongoing treatment, therapy, or surgeries, the release will bar you from recovering those costs.
• Lost wages: Compensation for time missed from work due to your injuries is forfeited.
• Pain and suffering: This encompasses the physical and emotional distress caused by the accident.
• Loss of consortium: Your spouse may be able to recover damages for loss of companionship and support, but a release will extinguish that claim as well.

What if my injuries worsen after signing a release?

Unfortunately, if you’ve signed a release, it’s extremely difficult to reopen the case, even if your condition deteriorates. California law provides a two-year window from the date of the accident to file a lawsuit for personal injury. If the claim is against a government entity (like a San Diego City vehicle), you MUST file a formal administrative claim within 6 months (180 days) under the Government Tort Claims Act. Once you sign a release, that window has closed. There are very limited circumstances where a release can be challenged – typically involving fraud or misrepresentation by the insurance company – and it requires a skilled attorney to navigate the complex legal process.

How can I protect myself before signing a release?

Before signing anything, you should consult with an experienced personal injury attorney. We will:

• Thoroughly evaluate your damages: We’ll gather all medical records, wage loss information, and other relevant documentation to determine the full extent of your losses.
• Negotiate with the insurance company: We can leverage our expertise to secure a settlement that adequately compensates you for all your past and future needs.
• Explain the release language: We’ll ensure you fully understand the terms and conditions before signing, so you’re not caught off guard later.

What if the insurance adjuster says I’m being unreasonable?

Insurance adjusters are skilled negotiators, and they often employ tactics to minimize payouts. They might claim your injuries are less severe than they are, or that the settlement offer is generous. Remember, their primary allegiance is to the insurance company, not you. They are looking to close your case as quickly and cheaply as possible. Don’t be pressured into accepting a settlement offer simply to avoid a perceived hassle. A skilled attorney can push back against these tactics and advocate for your rights.

Should I sign a release if I am still undergoing medical treatment?

Absolutely not. Signing a release while still receiving treatment is almost always a mistake. You won’t know the full extent of your medical expenses or long-term care needs until you’ve reached maximum medical improvement (MMI). Furthermore, the release will likely include language preventing you from seeking additional compensation if your condition worsens. Wait until you’ve completed treatment and have a clear understanding of your prognosis before considering any settlement offer. California follows a ‘pure’ comparative fault system. A plaintiff can recover damages even if they are 99% at fault, but their total recovery will be reduced by their percentage of fault for the accident.