When you’ve been injured in a car accident, one of the biggest decisions you’ll face is whether to accept a settlement from the insurance company. Settlements provide compensation for your medical bills, lost wages, and other damages without having to go through a trial.
But what happens if you accept a settlement and later realize your injuries are more serious than you thought? Can you reopen the claim?
The short answer is: in most cases, no. Once you’ve accepted a settlement and signed a release of liability, your claim is typically considered closed. However, there are a few exceptions where reopening may be possible. Understanding how settlements work, and when they can be challenged, is essential before you make any decisions.
If you have questions about a settlement offer you have received, contact an experienced car wreck attorney for legal help.
How Settlements Work
After a car accident, you’ll usually file a claim with the at-fault driver’s insurance company. The insurer investigates the accident, reviews your medical records, and makes a settlement offer. If you accept that offer, you’ll sign a document called a release of liability (sometimes called a settlement agreement). This document states that in exchange for the payment, you agree not to pursue further claims or lawsuits related to the accident.
This release is legally binding. That means once it’s signed, you generally cannot go back and ask for more money, no matter how bad your medication condition.
Why Reopening a Claim Is Rare
Insurance companies rely on the finality of settlements. They want to resolve cases quickly and avoid uncertainty about future expenses. That’s why they require the release of liability. From their perspective, the settlement closes the book on the claim once and for all.
Because of this, courts rarely allow accident victims to reopen a settled claim. Even if you later realize your injuries are worse than expected or your recovery takes longer, the agreement will usually prevent you from seeking more compensation. This is why accident victims are urged to wait until they reach maximum medical improvement (MMI) before settling, or to consult with an attorney before signing anything.
Exceptions That May Allow a Claim to Be Reopened
Although it’s uncommon, there are a few limited circumstances where a claim might be reopened:
1. Fraud or Misrepresentation
If the insurance company or the other party intentionally misled you, and you signed the settlement under false pretenses, you may have grounds to challenge the agreement. For example, if they withheld crucial information about coverage limits or intentionally undervalued your claim, reopening may be possible.
2. Mistake or Clerical Error
In rare cases, a settlement may be reopened if there was a clear mistake in the agreement. This could involve an error in the paperwork (the wrong policy being applied or a miscalculation in damages, for example) that fundamentally changes the settlement’s validity.
3. Bad Faith by the Insurer
If the insurance company acted in bad faith. An example of this is failing to investigate the claim properly, denying coverage unfairly, or pressuring you into a lowball settlement. In this situation you may be able to bring a separate legal action against the insurer.
4. Multiple Parties or Claims
Sometimes an accident involves multiple at-fault parties. If you settled with one party, you may still be able to pursue claims against others, depending on the terms of the release. However, you cannot typically pursue additional compensation from the same party once a settlement is signed.
Why People Regret Settling Too Soon
Many car accident victims feel pressure to accept the first settlement offer. Medical bills are piling up, work may be missed, and the insurer often insists that the offer is “fair.” However, rushing into a settlement can leave you without enough compensation for:
- Ongoing medical care (physical therapy, surgeries, prescription medications)
- Lost earning capacity if you cannot return to work or must take a lower-paying job
- Long-term disabilities or chronic pain that wasn’t fully diagnosed at the time of settlement
- Future costs like assistive devices, home modifications, or in-home care
Because settlements are final, once you realize your losses exceed the settlement amount, it’s usually too late to do anything about it.
How to Protect Yourself Before Accepting a Settlement
Since reopening a claim is rarely an option, the key is to protect yourself before signing a settlement agreement:
- Consult with a personal injury attorney. An experienced lawyer can calculate the full value of your claim, including future damages, and negotiate with the insurance company on your behalf.
- Reach maximum medical improvement (MMI). Wait until doctors confirm your condition is stable and you understand the long-term effects of your injuries.
- Review all paperwork carefully. Don’t sign anything without reading and fully understanding it.
- Be cautious of quick offers. Insurers often make early settlement offers hoping you’ll accept before realizing the full extent of your losses.
In most cases, once you accept a settlement and sign a release, you cannot reopen your car accident claim. The agreement is legally binding and designed to provide closure for both parties. Exceptions do exist, such as fraud, mistakes, or bad faith, but they are rare and often require litigation to pursue.
That’s why it’s so important to take your time, evaluate the full scope of your injuries, and get professional legal advice before settling. A decision made too quickly could leave you without the financial resources you need for ongoing recovery and long-term well-being.
