A Full and Final Settlement Letter is a formal communication between two parties who have agreed to settle a dispute or claim by agreeing to pay a certain amount to settle the dispute or claim.
In an auto accident, this letter confirms that the plaintiff has accepted the settlement amount offered by the insurance company or the at-fault driver, and in exchange, the plaintiff agrees to release the other party/parties from any further liability related to the accident.
Here you will find an example of an auto accident settlement letter:
[Please enter your name]
Please enter [City, State, Postal Code]
[Name of the Insurance Company]
[City, State, Postal Code]
Re: Full and Final Settlement for Automobile Accident [Claim Number].
I am writing to confirm my acceptance of the settlement amount of [settlement amount in words and numbers] offered by your company in full and final settlement of my claim related to the auto accident that occurred on [date of accident] at [accident location].
I understand that this settlement amount covers all damages, loss, and expenses arising out of the accident, including medical expenses, property damage, lost wages, and any other expenses arising out of the accident.
In consideration of the Settlement Amount, I agree to release and discharge [Name of Insurance Company or At-fault Party] and their respective agents, employees, representatives, and affiliates from any and all claims, demands, causes of action, or liabilities arising out of or related to the Accident.
I certify that I have not assigned, transferred or sold any part of my claim to any other person or entity and that I have not received any compensation from any other party or insurance company in connection with this claim.
Full and final settlement letter template car accident Download
I further acknowledge that I have read, understand, and agree to be bound by the terms and conditions of the Settlement Agreement. I acknowledge that this letter is a legally binding agreement between [name of claimant] and [name of insurance company or name of at-fault party].
Please confirm that you accept this settlement and instruct me on the next steps in finalizing the settlement. Your cooperation in the prompt resolution of this matter is greatly appreciated.
To avoid misunderstandings or disputes later, it is important to include all relevant information in the complete and final settlement letter. Some important points to keep in mind when writing this letter are State the settlement amount in both words and figures to avoid confusion.
Include the claim number or reference number provided by the insurance company or the at-fault party. Specify when and where the accident occurred to help contextualize the settlement. Include a release clause releasing the other party from any further liability related to the accident.
Acknowledge that you have not received any compensation from other parties in connection with the claim. Confirm that the settlement agreement is a legally binding agreement between both parties. Ask for confirmation of the settlement and instructions on the next steps to complete the settlement.
Following these guidelines and using the full and final car accident settlement letter template above will help the settlement process go smoothly and keep everyone satisfied with the result.