You were in a car accident. You went through the difficult process of filing a claim, dealing with the insurance company, and finally, you settled. You signed the paperwork, accepted the check, and tried to move on. You thought it was all over.
But now, weeks or months later, something is wrong. Maybe the back pain you thought was minor has become a serious, chronic condition requiring surgery. Perhaps you discovered that the insurance adjuster lied about the other driver’s policy limits. Or maybe you just sense that someone pressured you into accepting a settlement far too low. Now you’re asking yourself a question you never thought you’d have to ask: Can I reopen my car accident claim?
The honest answer is that reopening a closed car accident claim is difficult. In most cases, a settlement is final. However, a skilled car accident lawyer can assess your case and determine if any exceptions apply. "very difficult" does not always mean "impossible." There are very specific and limited circumstances where it may be possible to challenge a settlement agreement.
Understanding Why Most Car Accident Settlements Are Final
When settling a car accident claim, the final step is signing a "Release of All Claims" or a settlement agreement. Understand that this contract binds you legally. By signing it, you are making a promise to the other party and their insurance company.
In exchange for the settlement money, you agree to give up your right to pursue any further legal action related to the accident. This means you cannot sue them or ask for more money in the future, even if your injuries turn out to be worse than you first thought.
The purpose of this release is to create finality. The insurance company wants to close its books on your case and knows it will not have to pay anything more. For you, the settlement provides money to pay your bills and ends a stressful process. Courts generally want to uphold these agreements because they encourage parties to resolve disputes without going to trial.
Because this release is a powerful legal contract, a court will not set it aside because you have second thoughts or feel you made a bad deal. To reopen a claim, you must prove that the settlement agreement itself is invalid for a specific legal reason.
What Are the Limited Exceptions for Reopening a Settled Claim?
You cannot reopen a car accident claim simply because you are unhappy with the amount you received. Buyer's remorse is not a valid legal reason. You and your attorney must prove that the parties seriously mishandled the settlement agreement process. The law generally recognizes a few rare situations where this might be possible.
Proving Fraud or Misconduct by the Insurance Company
One of the main reasons a court might consider setting aside a settlement is if you were a victim of fraud. This goes beyond simply feeling like someone treated you unfairly. Fraud means the insurance company or its representative intentionally lied about a key fact or hid important information to trick you into settling your case for less than it was worth.
Under the law, a person or company is responsible for the harm they cause when they engage in willful deceit or fraud. Examples of fraud in a car accident settlement can include:
- The insurance adjuster intentionally lies to you about the at-fault driver's policy limits, claiming they only have a $25,000 policy when they actually have a $250,000 policy.
- A professional hired by the insurance company intentionally hid or falsified evidence that showed their driver was clearly at fault.
- The other driver knowingly provided false information about the accident that they knew will influence your decision to settle.
Proving fraud is very difficult. It requires clear and convincing evidence that the other side intentionally deceived you. If you suspect that you were a victim of this kind of misconduct, it is time to speak with a car accident lawyer who can investigate the situation.
A "Mutual Mistake" About a Key Fact
Another possible but rare exception relies on the legal concept of "mutual mistake." For a contract to be valid, both parties must freely consent to its terms. The law states consent is not real or free when obtained by mistake.
A mutual mistake occurs when both you and the insurance company were fundamentally wrong about a critical fact when you signed the settlement agreement. This cannot be a mistake in judgment, such as underestimating how long your recovery takes. It must be a mistake about an existing fact.
For example, imagine you and the insurer settling your case, believing your only injury was a broken leg. You both relied on a doctor's report stating this. Later, both sides discover that the accident caused a serious hip injury missed by the initial doctor and completely unknown at the time of the settlement. In this specific scenario, you might argue that both sides made a mutual mistake about the true nature of your injuries when settling.
This is a very high legal standard to meet. If the mistake was only on your side (a "unilateral mistake"), it is generally not enough to undo the settlement. A lawyer who handles post-settlement issues can review your case to see if this narrow exception can apply.
New and Worsening Injuries
This is the most common reason people want to reopen their car accident claims. You settled your case thinking you had a simple back sprain, but months later, you find out you have a herniated disc that requires major surgery. Unfortunately, this is also the most difficult situation to overcome.
Almost every settlement release form you sign will contain language that says you are releasing the other party from all claims for all injuries, "whether known or unknown." This language prevents people from returning for more money if their injuries worsen.
By signing that document, you legally accept the risk that your injuries can be more severe than you believe them to be. A known injury that worsens over time is rarely a valid reason to reopen a case.
The only potential path forward is if you can prove that you developed a completely new and different condition that was not a known risk of your original injury and was truly unforeseeable at the time you settled. This is an extremely challenging argument to make and requires strong medical evidence. An experienced car accident attorney can explain whether your situation meets this high standard, even by a small margin.
What About Reopening a Court Judgment?
Most car accident cases resolve through a settlement agreement. However, a few cases go to trial, resulting in a court-ordered judgment. The rules for challenging a judgment are even stricter than those for a settlement.
State law often provides a short window, sometimes only six months, where you can ask a court to set a judgment aside. This is not something a court does lightly. According to the law, you must prove that your "mistake, inadvertence, surprise, or excusable neglect" caused the judgment against you. This is a very limited remedy that applies in specific procedural situations, not simply because you are unhappy with the outcome of your trial.
Why You Need an Experienced Personal Injury Attorney to Review Your Closed Case
Determining whether you have any grounds to challenge a settlement is not a do-it-yourself project. The legal and procedural hurdles are incredibly high, and you will be going up against an insurance company and its team of lawyers who will fight to keep your case closed.
This is a situation where you need the opinion of a qualified legal professional. A lawyer who handles post-settlement issues can perform a detailed review of your original case. This includes:
Why You Need an Attorney to Review Your Closed Car Accident Case
You should not try to determine alone if you can reopen your closed car accident case. The legal standards are very high, and the insurance companies have teams of lawyers ready to block any attempt to undo a settlement. To have any chance, you need a professional on your side. An experienced car accident attorney can perform a detailed review of your situation and provide the guidance you need.
An Attorney Will Analyze Your Settlement Agreement
A lawyer will first carefully read every word of the settlement release form you signed. These documents are not simple receipts; they are powerful legal contracts written by insurance company lawyers to protect their interests as much as possible. Your release form likely contains broad language stating that you give up your right to all claims for all injuries, "whether known or unknown."
An attorney analyzes this language to identify exactly what rights you gave up and to find any ambiguities or potential loopholes to challenge. Only a legal professional can truly understand the full impact of your signed contract.
A Lawyer Can Investigate Potential Fraud or Misconduct
If you suspect you were lied to or that the insurance company hid important information, you need more than just a suspicion to act. You need proof.
A lawyer who handles post-settlement issues has the tools to conduct a formal investigation. They file legal motions to demand documents from the insurance company, locate and interview previously unknown witnesses, and hire professionals to re-examine the facts of your case. Uncovering fraud requires a deep investigation, and an attorney is your best chance at finding the evidence needed to prove misconduct occurred.
Your Attorney Will Evaluate New Medical Evidence
This is often the most difficult part of trying to reopen a claim. An insurance company will always argue that your new health problems are just a worsening of the injuries you already knew about.
An experienced car accident lawyer works closely with your doctors and other medical professionals to review your medical history. They will compare the records from before your settlement to your current condition to determine if your new diagnosis is a separate and unforeseeable injury or a progression of the old one. Making this medical-legal argument requires a sophisticated understanding of medicine and the law.
You Will Get an Honest and Realistic Assessment of Your Options
Perhaps the most important service an attorney provides is giving you honest advice. A reputable car accident lawyer will not give you false hope. They will tell you the truth about your chances of success. In most situations, after reviewing the settlement and the facts, a lawyer likely determines that you cannot reopen the case.
This honesty protects you from spending time and energy on a losing battle. However, if your case is one of the rare exceptions with a legitimate chance, that same honest and skilled advocate is the only person you will want to fight for you.
Frequently Asked Questions About Reopening a Car Accident Claim
What is a "release of all claims" form?
A release of all claims is the legally binding contract you sign when you settle a car accident case. It states that in exchange for the settlement payment, you give up all rights to sue or seek further compensation from the at-fault party or their insurance company for any injuries related to the accident, including those you may not know about.
What's the difference between reopening a claim and a bad faith insurance lawsuit?
They are very different. Reopening a claim means trying to undo the original settlement agreement. A bad faith insurance lawsuit is a separate case you can file against your insurance company if it is unreasonably denied or delayed in paying a valid claim under your policy (for example, a claim for uninsured motorist coverage).
I just regret settling for too little. Is that enough to reopen my case?
Almost always, the answer is no. "Settler's remorse" is not a valid legal reason to set aside a settlement agreement. The law expects that when you sign a release, you have made a final decision, even if you later feel it was not the best. This is why you need advice from a car accident lawyer before agreeing to any settlement.
Contact an Attorney for a Review of Your Settled Case
Suppose you have already settled your car accident claim, but now believe there was fraud, a serious mistake, or another issue with the agreement. In that case, you must understand your legal standing. While the odds are often long, getting a professional opinion is the only way to know.
Gather all the documents from your original settlement, including a copy of your signed release form. Then, contact an experienced car accident attorney to request a review of your closed case. A skilled personal injury lawyer analyzes your situation and provides clear, honest advice so you can make an informed decision about your future.