An insurance release is one of the most important documents you’ll ever sign.
But most people just scrawl their signature on it anyway. They’re angry, they’re emotional, and the insurance company is holding a cheque right in front of them. They sign.
Here’s the problem:
When you sign that release, it’s final. There’s no take-backs. You can’t go back and ask for more money later if your injuries are worse than expected.
Learn what an insurance release is, why contributory negligence can make signing one so dangerous, and what you should look for before you sign.
Let’s jump in!
What’s inside this guide:
- What Is An Insurance Release?
- Why Contributory Negligence Changes Everything
- What To Check Before You Sign
- The Biggest Mistakes People Make
What Is An Insurance Release?
An insurance release form is a legal contract whereby you agree to accept payment in exchange for relinquishing your right to pursue litigation.
Simple, right? Not quite.
When you sign a release, you are releasing the other party from any future claims. Whatever dollar amount is in that release is ALL you will ever receive. Even if you have surgery in 6 months, you cannot reopen the case.
That is why knowing about contributory negligence is so important BEFORE you sign anything. If you reside in a pure contributory negligence state such as Virginia, the insurance company is already having all of the advantages. Talking to a Virginia Beach personal injury attorney prior to signing a release can advise you if the release amount is truly fair to the value of your case, because once you sign it, that number is set in stone forever.
It’s your livelihood on the line. The average auto liability bodily injury claim payout rose to $27,373 in 2024, which is an 8% jump from the previous year. Don’t leave that money behind by settling too soon.
Why Contributory Negligence Changes Everything
Here’s where things get serious.
Contributory negligence is a law that determines if you can recover damages after an accident. And it’s downright barbaric in a few states.
Most states follow a principle known as comparative negligence. Under comparative negligence, if you are partially at fault, your award is simply reduced by your percentage of fault. So if you were 30% responsible, you can still recover 70% of your damages.
But Virginia doesn’t work like that.
Virginia is one of the few states that follows a standard called pure contributory negligence. This means if you are even deemed 1% responsible, you can be prevented from recovering any compensation. None. Zero.
Think about how harsh that is:
- The other driver could be 99% responsible.
- Your injuries could be catastrophic.
- If you’re even partly at fault, you could walk away with nothing.
Side Note: Only VA, AL, MD, NC, and Washington D.C still abide by this rule. Everyone else realized the grace of the comparative system.
And how does that relate to insurance releases? Well…insurance companies understand this concept. Even if they can shift a tiny portion of the blame to you…they don’t have to pay. That’s powerful negotiation when they’re sliding a release in front of you.
What To Check Before You Sign
Take your time before signing any release and compare these few items. That is where most people short change themselves.
Read The Scope Of The Release
Some releases are more general than they appear. It might say you’re releasing one claim, but the small print might waive your right to sue for all injuries related to that claim.
Read the entire contract. Know what you are signing. If there is something you don’t understand, then ask someone.
Make Sure Your Injuries Are Fully Known
BIG NEWS: Many injuries do not reveal their full magnitude until some time after the accident occurs. Whiplash injuries, back injuries and head injuries can progress for weeks or months.
Signing before you understand the full extent of your injuries is like rolling the dice with your health and your pocketbook. After medical treatment has concluded, most uncomplicated cases resolve within 6-9 months. There’s generally no reason to settle quickly.
Confirm The Amount Reflects All Your Damages
Your settlement shouldn’t just pay for your medical bills. It should include payment for future treatment, lost wages, pain and suffering and prolonged recovery.
Reject the first offer. Studies indicate that individuals who waited for a better offer ended up with far greater settlements than those who accepted what the insurance company first gave.
The Biggest Mistakes People Make
Old dogs bite the same old tricks. Let’s learn how to sidestep the pitfalls.
Talking Too Much To The Adjuster
Insurance adjusters know how to get you talking. If you live in a contributory negligence state, that can be hazardous. They can use something as simple as “I’m sorry” or “I didn’t see them” against you to claim you were partially negligent.
Keep in mind that in VA it’s the defendant’s responsibility to show you were negligent. However, don’t give them any ammo! Watch what you say.
Signing Under Financial Pressure
You’re in pain and the bills are mounting. That first cheque may seem very tempting. Insurance companies know this. They often try to lure you with an early, lowball release. Don’t settle for less than you deserve.
Assuming You’ll Get “Something”
Many folks think that they can still recover a reduced award if they were only partially at fault. In most states, that is correct. In Virginia, it is not. Pure contributory negligence means that ANY percentage share of fault can completely eliminate your recovery. Expecting to receive “something” will cost you dearly.
Going It Alone
This is where the rubber meets the road. Insurance companies have armies of adjusters and lawyers whose sole job is to pay you the least amount of money possible. Fighting fire with fire on your own is nearly impossible, especially in a state where you can be destroyed by 1% of fault.
Final Thoughts
Signing an insurance release can feel like the end game. It is actually the most crucial decision you will make during your entire claim.
The reality is insurance companies hope you sign quickly and quietly. They have an even greater incentive to sell you on a quick release in contributory negligence states, because the law is already weighted against you.
Before you sign, make sure you:
- Understand the full scope of the release
- Know the true extent of your injuries
- Confirm the amount covers all your damages
- Watch every word you say to the adjuster
Contributory negligence is a brutal doctrine. However, if you understand the way it applies, and proceed with caution before signing your name, you can insulate yourself from an irreversible error.
Once you sign that release, there’s no going back.
