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In the event of a two-car accident, parties can opt to settle damages and injuries out of court using a car accident waiver and release liability, known as a car accident settlement agreement. This legally binding document ensures that, once signed, the parties will not pursue legal action against each other, effectively resolving the dispute outside of the judicial system. For accidents involving more than two cars, the agreement must include all parties, complicating the process and often resulting in legal proceedings. The form aims to release both parties from legal responsibility and facilitate a simpler resolution for minor accidents.