Car Accident Settlement Agreement Form


This is a sample mutual release and settlement agreement for a car accident case. This is a type of agreement that is entered into between a plaintiff (or claimant) and the at-fault driver and their insurance company when an auto accident case gets settled out-of-court (or a private settlement).

This template agreement prevents the plaintiff from continuing to pursue any claims related to the accident in exchange for payment of the agreed settlement amount.


THIS SETTLEMENT AGREEMENT AND RELEASE (“Settlement Agreement”) is entered into between  [NAME OF PLAINTIFF(s)] (hereinafter “Plaintiff”), by and through  [NAME OF DEFENDANT ] (hereinafter “Defendant”), and  [NAME OF INSURER] (hereinafter “Insurer”).


    (A) Plaintiff sought to recover monetary damages from Defendant as a result of an auto accident that occurred on [DATE OF ACCIDENT] at [LOCATION OF ACCIDENT] (the “Auto Accident”) which resulted in personal injury and/or physical injury to the Plaintiff.

    (B)  The Insurer is the liability insurer of the Defendant and as such would be obligated to pay any judgment and/or settlement obtained against the Defendant which is covered by its policy.

    (C)  The parties desire to enter into this Settlement Agreement to provide for certain payments in full settlement and discharge of all claims which are or might have been the subject of the Complaint, upon the terms and conditions set forth herein.


FOR AND IN CONSIDERATION OF the payment to Plaintiff of the sum of $                     , (receipt of which is now acknowledged), Plaintiff completely releases and forever discharges the Defendant and Insurer, of and from any and all past, present or future claims, demands, obligations, actions, causes of action, rights, damages, costs, loss of services, expenses and compensation which the Plaintiff now has, or which may hereafter accrue or otherwise be acquired by the Plaintiff, on account of, or in any way growing out of, or which are the subject of, the Auto Accident allegedly caused by Defendant’s negligence. 

This release contains the ENTIRE AGREEMENT between the parties hereto, and the terms of this release are contractual and not a mere recital.

I have carefully read the preceding release and know the contents. I sign the same as my own free act.



What Is a Car Accident Settlement Agreement Form?

A car accident settlement agreement form is the document that releases all parties to the agreement from liability in exchange for money.

What Should Be in the Settlement Agreement?

If you are the victim, a settlement agreement is all about the settlement amount. The reason a victim signs a release is for payment for the harm that was done to them.

You want clarity on who you are releasing and the type of claims you are releasing if you want the opportunity to bring more claims in the future. The most common claim left open is property damage.

Certainly, more detail in a settlement release in a car accident is better than less detail for the defendant. But, usually, the victims care little about whether the release is vague as to which accident we are talking about or the specific identity of all of the parties being released because you go into it assuming you are giving up all of your rights to further pursue a claim against the at-fault driver (and, maybe, anyone else related to the facts of that accident).

(There are exceptions. What if the at-fault driver is your ex-husband. But in most cases, the victim has no interest in pursuing another claim against the defendant.)

When Should I Sign a Settlement Release?

You should not sign a release until you have spoken to a lawyer about all of your rights. It is rarely wise to settle a case while you are still treating and do not fully understand all of the future ramifications in terms of treatment or pain and suffering you will endure.

What If I'm Not Required to Sign a Settlement Agreement?

Some insurance companies in uninsured motorist claims (State Farm comes to mind) will not require you to sign a release. So, technically, you can still sue State Farm although any money you receive would be set off against any future verdict or cash settlement. This is a good thing. If you are the victim, you would rarely rather sign a settlement release.

After a Settlement Release Is Signed How Long Before I Receive a Check?

How long it takes to receive a settlement check and a settlement release depends on the insurance company. Some insurance companies send lawyers the check and release at the same time because they have a history with that law firm. Others send the check within a week of receiving the signed settlement release.