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It is a good idea to try and settle your dispute with the other party without having to go to court. By coming to an agreement about who was at fault and who will pay for the repairs to the vehicle, you will save time and money. The court process is expensive, takes up time and money, and the outcome may be uncertain.
If you reach an agreement with the other party or their insurer, it is a good idea to put the agreement in writing. A written agreement is often called 'terms of settlement' or a 'settlement agreement'.
There is no set form. Your agreement can be handwritten or typed. The agreement must set out clearly what you have agreed with the other party. The agreement can include:
It is important that the agreement covers all the disputes between the parties. You should make the settlement agreement in 'full and final settlement of all claims'. This means that if you agreed to pay someone money to fix their car, they can't later claim against you for something else, like hire car costs.
Sample: Terms of settlement
If you are not sure how to settle your dispute, you should get legal advice.