Will signing a property damage release affect my right to pursue a bodily injury claim later?: North Carolina
Will signing a property damage release affect my right to pursue a bodily injury claim later? - North Carolina
Short Answer
Yes—if you sign a broad “all claims” release, you can give up your bodily injury claim in North Carolina. To preserve your injury claim, use a property-damage-only release that clearly excludes any bodily injury. If underinsured motorist coverage might apply, give your carrier written notice before releasing the at-fault driver. You generally have three years to file a personal injury lawsuit.
Understanding the Problem
You want to know if signing a property damage release will cut off your right to pursue a bodily injury claim from the same crash in North Carolina. The insurer is contacting you directly to settle vehicle damage because your injury attorney is not handling the property damage portion. You need to decide whether you can safely sign and still continue your injury claim.
Apply the Law
In North Carolina, a release is a contract. If the written release says it resolves “all claims” or includes bodily injury, it will usually bar your injury claim. If the release is expressly limited to property damage only, your bodily injury claim generally remains open. If underinsured motorist (UIM) coverage could apply, you must notify your UIM insurer and allow it time to protect its rights before releasing the at-fault driver. Lawsuits over bodily injury are filed in civil court, and there is a general three-year deadline from the crash to sue.
Key Requirements
Clear release language: The document must say it is limited to property damage only and does not release bodily injury claims.
Scope of claims: Avoid any wording like “all claims,” “personal injury,” or “known and unknown injuries” if you intend to preserve injury claims.
Consideration paid: Payment should be identified as property damage only (repairs/total loss/rental) and not for injury.
Parties and signatures: The correct owner/driver signs; keep copies of the signed release and any emails confirming the limitation.
UIM consent/notice: If UIM may be in play, give written notice to your UIM insurer before releasing the at-fault driver to avoid harming UIM benefits.
Deadline to sue: File any personal injury lawsuit in North Carolina civil court within three years of the crash unless an exception applies.
Apply the Rule to the Facts: Because the insurer is dealing with you directly on property damage, the key is what the document says. If you sign a release that is limited to property damage and expressly preserves bodily injury, your injury claim should remain intact. If the release uses broad language covering all claims from the crash, it can extinguish your injury claim. If UIM might apply, send written notice to your UIM carrier before any release of the at-fault driver.
Process & Timing
Who files: You (or your counsel). Where: Negotiate the property claim directly with the insurer; if litigation becomes necessary, file in North Carolina civil court in the county where the crash occurred or the defendant resides. What: Ask for a “property-damage-only release” that expressly excludes bodily injury; if suing, file a civil complaint. When: Generally within three years for injury or property claims.
Before signing, confirm in writing that the release does not include injury claims; review the check stub and any voucher language to be sure it does not say “full and final settlement of all claims.” If UIM may apply, give your UIM insurer written notice of any tentative settlement with the at-fault insurer and allow time for its response.
After execution, keep copies of the signed release and confirmation emails. Continue your medical treatment and injury claim negotiations. If settlement fails, proceed with a lawsuit in the proper North Carolina civil court within the deadline.
Exceptions & Pitfalls
Broad boilerplate: Language like “all claims,” “bodily injury,” or “known and unknown injuries” can waive your injury claim—insist on property-damage-only wording.
UIM rights: Releasing the at-fault driver without proper notice can jeopardize UIM benefits; notify your UIM carrier before releasing.
Multiple at-fault parties: A release can affect claims against others if it says so; even if not, your total claim is typically reduced by what you received.
Checks that act like releases: Endorsements or vouchers that say “full and final settlement of all claims” can function as a release—review the payment documents.
Undoing a signed release is hard: Claims of fraud, duress, or mutual mistake are narrow; read carefully before you sign.
Conclusion
In North Carolina, a property damage settlement will not waive your bodily injury claim if—and only if—the release clearly limits settlement to property damage and excludes injury. Avoid any “all claims” language and protect UIM rights before releasing the at-fault driver. Next step: ask the insurer for a property-damage-only release in writing and have it reviewed before signing; if you later need to sue for injury, do so within three years.
Talk to a Personal Injury Attorney
If you’re being asked to sign a property damage release while your injury claim is ongoing, our firm can help you protect your rights and timelines. Reach out today at (919) 341-7055.
Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.
