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when in a car accident involving two cars there is the option to settle the damages and injury out of court in order to do this a car accident waiver and release liability is needed this is referred to as a car accident settlement agreement its a legally binding document that ones signed guarantees that a settlement will be finalized outside of the legal system the purpose of this form is to make sure that the person who signs it will not sue the other party involved after the fact therefore the goal is to settle a dispute which arises from a small accident out of the court by releasing both parties from legal responsibility can I use this form if the accident involved more than two cars if an accident involves more than two cars this form would need to include all of the cars that were involved in the accident which can be a daunting task and its often why multiple car related accidents go through the legal system in order to be settled the more cars there are the more complicated