HOW TO WRITE A CAR ACCIDENT SETTLEMENT LETTER WITHOUT INSURANCE

A car accident settlement letter is intended to notify an injured party that the person responsible is willing to pay any expenses that they may have that are related to the incident. In the case of a car accident, one person is usually designated as at fault for the collision.

In this case, that person may not want to involve his or her insurance company, so they send an accident settlement letter promising to pay the other person’s damages. There are several reasons why this is a good idea, especially for a minor accident. 

A settlement may be beneficial to both parties because it will allow them to avoid the costs of litigation and will settle the issue much faster. This is why it takes careful thought and attention to the contents of the letter to avoid the possibility of litigation in the future.

If the accident is major and severe injuries are the result, the insurance companies of the people involved will need to be part of any settlement process. If this is the case, it is not recommended for the person responsible for the accident to act alone. They should consult a lawyer first.

Before writing a car accident settlement, the responsible person should talk to the injured person and come to an agreement on the amount required to fix the damaged car. There is no point in writing an agreement letter unless both parties have agreed on the amount first.

If there are medical expenses involved with a physical injury, the cost of any treatment must also be official and documented. It is not recommended to pay medical costs without consulting a lawyer first.

Problems could arise later that are blamed on the accident. If medical expenses are paid, the agreement must include the fact that the injured party will not request any further payment from the responsible person at a later date. 

The letter should contain all of the requirements of an enforceable agreement. This means it should offer a payment and the payment should be accepted. This is usually done by having the injured party sign a copy of the letter and returning it to the responsible person.

Some tips for preparing a payment agreement letter:

• Both parties involved in the accident should be identified
• The letter should state that the payment is full and final, and that the injured party releases the responsible party from all present and future claims
• If applicable, terms and conditions for payment should be mentioned
• How the amount will be paid should be specified
• The injured party should be given the opportunity to modify the letter if they wish. If they do modify it, both parties need to agree on the changes
• The parties may want to sign the letter together in the presence of a notary public. This will prevent the agreement from being disputed on the grounds of a question of the identity of one party 
• The language in the letter should be simple and clear. This is to ensure that nothing is left to interpretation 

Below is a sample car accident settlement letter. It is a legal document, so it should be a formal business letter. It should be sent by certified mail with a return receipt requested. This provides proof that the injured party received an offer of settlement. The injured party need not have received physical injuries. If their car is damaged in an accident that is not their fault, they are the injured party.

Sample Car Accident Settlement Letter

Name of Responsible Person
Address of Responsible Person
City, State, Zip Code

DATE

Name of Injured Party
Address of Injured Party
City, State, Zip Code

RE: offer of payment for repairs on the damaged car

Dear Name of Injured Party:

This is a formal letter of agreement for payment for the damage I caused to your car on DATE. I backed into the side of your car in the parking lot at ADDRESS and damaged the driver’s door. In our telephone conversation on DATE, we agreed that the full and final settlement amount for the cost of repair is AMOUNT. I agree to pay this amount with a personal check on or before DATE. Once this payment is made, you agree that I do not owe you any more money. 

When you sign this letter, you agree to release me from all present and future claims.

I have enclosed a copy of this letter for you to sign and return to me. Once we have both signed this letter, the agreement is final.

If you have any questions, or would like any changes in this letter, I can be reached at Phone Number or at Email Address. 

Sincerely,

Signature of Responsible Person
Printed Name of Responsible Person
List of Enclosures: Copy of the letter