Can You Sue Someone After Settling With Their Insurance?

A car accident can leave you with injuries, medical bills, and a growing sense of frustration when insurance companies get involved. After filing a claim, you receive a settlement offer. It might seem reasonable at first—but what happens if your condition worsens or new expenses come up? Are you stuck with what you accepted, or can you sue someone after settling with their insurance?

Many assume that signing a settlement agreement after a car accident closes the door for further legal action, but that's not always true. Some situations allow for additional claims, and understanding your rights could mean the difference between getting shortchanged and receiving the full compensation you need.

Insurance companies work to settle claims quickly, often before you fully understand the long-term impact of your injuries. Signing too soon can leave you responsible for medical bills, rehabilitation, or lost wages the settlement didn't cover.

At Smith Law Center, we have spent over 70 years standing up for accident victims in Virginia. Our team has recovered over $1 billion in verdicts and settlements, ensuring clients aren't pressured into unfair agreements. If you have questions about your settlement or need legal guidance before signing, call (757) 244-7000 for a free case review.

Can a Lawsuit Be Reopened After a Settlement?

Most insurance settlements include a release of liability clause, which generally prevents you from filing another claim for the same accident. This often raises the question: Does a settlement always end your right to sue? In many cases, yes—but not always. Certain circumstances may allow for further legal action, even after signing a settlement agreement.

Another Party Shares Liability

Settling with one party does not necessarily prevent you from taking legal action against others who may have played a role in the accident.

Example: You're injured in a crash involving two drivers. You settle with one driver's insurance but later find out the second driver also contributed to the incident. Since the agreement only covered one party, you may still have the right to sue the second driver

The Insurance Company Acted in Bad Faith

Virginia law requires insurance companies to negotiate fairly. If an insurance company misled you, withheld key information, or pressured you into signing, the settlement agreement may not be valid.

Example: The insurance company assures you that your settlement will cover all medical expenses. Later, you receive additional bills that should have been included. If the insurer knowingly misrepresented coverage, you may have grounds to challenge the settlement.

Defective Products or Third-Party Negligence

If a defective product, dangerous road condition, or another third party contributed to your injuries, you may still have a case against those responsible.

Example: You settle a claim after a truck accident, only to learn that faulty brakes contributed to the crash. Since the brake manufacturer wasn't part of the original settlement, you may be able to pursue a separate lawsuit against them.

While a settlement often closes a case, a lawsuit may be reopened under specific legal circumstances. If you believe an insurer acted unfairly or another party remains liable, legal guidance can help determine your next course of action.

How Long Do I Have to Sign a Settlement Agreement?

Insurance companies often push for a quick resolution, but there’s no strict legal deadline requiring you to sign. How much time do you have to decide? The answer depends on the insurer’s policies, but once you sign, your case is generally closed.

Rushing into an agreement can leave you without the financial resources needed for ongoing care. Before signing, consider:

• Have you completed all medical treatments?
• Does the settlement cover future expenses?
• Did the insurance company fully explain your rights?

Reversing a settlement after signing is extremely difficult. Reviewing the terms with a legal professional ensures you aren't prematurely giving up your rights.

What Happens After a Settlement Is Reached?

Once both parties agree to a settlement, the process moves quickly. What comes next? Most of the time:

• The insurance company processes the payment.
• The insurer deducts medical liens and legal fees.
• You receive the remaining funds.

The process may seem straightforward, but unexpected issues can arise. Insurance companies may delay payments, medical providers may seek more than expected, and some claimants later regret agreeing to an amount that doesn't fully cover their expenses.

What Happens After a Settlement Agreement Is Signed?

You accept the terms and close the case by signing a settlement agreement. What follows after signing? The at-fault party's insurance company no longer has to pay additional compensation, even if new medical complications arise.

This is why insurance adjusters push for fast settlements—once you sign, they are no longer responsible. If an injury worsens, you cannot go back and demand more unless fraud, multiple liable parties, or other exceptions apply.

A settlement should cover everything—medical expenses, lost income, ongoing care, and pain from your injuries. However, insurance companies often offer far less than victims truly need.

Smith Law Center ensures our clients receive fair settlements, not just quick ones. If you're unsure about signing, let us review your case first. Call (757) 244-7000 for a free consultation before deciding.

What to Do Before Accepting a Settlement Offer

A settlement offer might seem reasonable at first glance, but before accepting, consider:

• Medical prognosis. Some injuries take months to heal, and long-term care costs should be included in the settlement.
• Future expenses. If your recovery isn't complete, you could be signing away the ability to recover additional costs.
• Other liable parties. If multiple people contributed to the accident, make sure your settlement doesn't prevent claims against them.

Example: You're injured in a t-bone accident or a rear-end accident and accept a settlement from the driver's insurance. Later, you discover a defective seat belt made your injuries worse. If your settlement didn't release the manufacturer from liability, you may still have the right to sue them.

Can You Sue Again After a Settlement?

Most personal injury settlements prevent you from seeking additional compensation, but as discussed, exceptions exist. Can you sue again after a settlement? Only under specific circumstances:

• Another party is liable. Settling with one defendant doesn't prevent lawsuits against others.
• Fraud or misrepresentation. If the insurance company withheld information, the agreement may be invalid.
• Defective product claims. If an unsafe product, like a defective airbag or brakes, caused the injury, a separate claim against the manufacturer may be possible.

Virginia law allows injured parties to seek justice, but once a settlement is finalized, it's difficult to revisit. This is why it's so important to review the terms carefully before signing.

Smith Law Center Protects Virginians From Unfair Settlements

Insurance companies move fast, hoping claimants accept less than they deserve. At Smith Law Center, we ensure accident victims receive the compensation they need for medical treatment, lost wages, and ongoing care.

Smith Law Center has spent over 70 years holding insurance companies accountable. Our attorneys have recovered more than $1 billion for accident victims, ensuring they receive fair settlements—not the lowest offer the insurance company can get away with.

If an insurance company has offered you a settlement, or you're unsure whether you can take further legal action, call Smith Law Center at (757) 244-7000 for a free consultation. Understanding your rights now can prevent costly mistakes later.