Expert: Ron Cercone - 10/23/2009

Question
My daughter was driving my car and was hit by another and I am about to sign a release of all claims form just for the loss of my car which was a total loss. My daughter has finished up physical therapy for back injuries she sustained and will be settling with them over injuries and doctor bills in a separate claim. She was the only one in the car accident. I am looking at this release of all claims form and the way it reads, I am concerned I might be signing her right away to any claim against this insurance company, possibly even becoming liable for any claims they might be forced to pay out if I sign this settlement for $3200. I would think that I could not sign away her right to a claim, she would have to do that. I am not sure if this for applies to me only, releasing them of any further claims "I" might have, or "anyone" might have regarding this specific accident. Is this insurance adjuster trying to pull a fast one on me and get me to release them from "all claims" including my daughter's, or is this truly for just the car, and any claim I personally might have against them in the future? I would think I am settling on the loss of a car only, and any mention of doctor bills, injuries, property damage etc. should not even be in the release I am signing, not to mention, there is no mention of the specific car that was wrecked, at all. I need to settle on this car today, but I do not want to unknowingly sign away my daughter's right to her claim. She has over $6000 in docter bills.

Answer
Brent,

It's a dog eat dog world in insurance claims. If you don't have a lawyer or a book on insurance claims, all you have is your common sense. So don't sign the release if it says "release of 'all' claims. Draw a line through "all" and write above it "damage to my car claim". It's against the law in most areas for an insurer to say they can't settle the property damage without settling the bodily injury claim. And if you want to make sure you got a fair settlement on the value of your vehicle, consider the eBook from UClaim.com "Total Loss Auto (for Insureds or Claimants)".