After a car accident, medical bills can pile up and accepting a settlement offer can seem like the quickest path to relief. However, you may later discover that your injuries are more serious than you first believed. This raises the question of whether you can file a claim for further compensation.
Understanding what an insurance release does
When an insurance company pays a settlement, the process nearly always requires signing a document called a release of liability. This release states that you waive the right to seek additional funds from the at-fault driver for the same accident.
AlthoughTennessee courts generally enforce these agreements as binding contracts, a signed release is not always absolute. Although judges will not overturn a release simply because the settlement amount was low, exceptions exist.
Identifying which exceptions apply
The following circumstances can lay the groundwork for you to challenge the settlement agreement:
- Fraud or misrepresentation: The insurance company hid key facts or made false claims that intentionally misled you into settling.
- Duress or coercion: The insurer or the at-fault party applied unlawful pressure or threats to force you to sign the release.
- Mutual mistake of fact: Both parties were completely unaware of a critical fact when they reached the deal, such as a severe, hidden injury that a doctor had not yet diagnosed.
- Claims against other parties: Another at-fault party contributed to the accident, because a release with one driver’s insurer does not necessarily prevent a separate lawsuit against a different responsible party.
Even under these exceptions, the burden of proof falls entirely on the person trying to reopen the claim. Additionally, if you believe the insurer acted in bad faith, you have the right to file a formal complaint with the Tennessee Department of Commerce and Insurance.
Knowing your full damages before signing
In the weeks after a crash, it can be difficult to gauge the full extent of an injury. Conditions such as traumatic brain injuries can sometimes take months to fully surface.
Tennessee enforces a one-year deadline for personal injury claims. Although this deadline can be short, taking the time to properly review the potential damages is crucial, though it does not guarantee a financial outcome. Factors such as medical expenses, rehabilitation costs and the overall impact on your quality of life all require careful consideration before any agreement is finalized.
