Internet lawyers: car insurance settlement question

[Yossarian]

My insurance company, Geico, has reached an agreement with the company of the bonehead who hit me 3 months ago. In order for Geico to be paid, and for me to get my deductible back, I have to sign a release. Here's the part I don't understand:

"It is understood and agreed that this settlement is the compromise of a doubtful and disputed claim, and that the payment made is not to be construed as an admission of liability on the part of the party or parties hereby released, and that said releasees deny liability therefore and intend merely to avoid litigation and buy their peace."

If the other company is paying, why do they insist on not admitting liability?

My total claim was $5500. The other guy's company is paying Geico $5000 as part of this release. The other $500, my deductible, will be reimbursed to me by Geico because I was not at fault. Geico also says that my rates will not go up because of this.

 

[jemcam]

That's probably the best you're going to get.

The question is now do you want to stand your ground for principles and get nothing, or concede in the interest of saving yourself some money, time, and frustration?

 

[Yossarian]

I asked my insurance agent to find out if they would take that paragraph out. I would prefer to have a piece of paper from them saying that their client was at fault for when I change insurance companies. The worst that will happen is they'll say no.