should I sign or reject this release form from the insurance of the at fault driver

my car was rear ended and I have it repaired through my insurance. the other insurance company determined their insured (3rd driver) responsible for damages to my and a 2nd car. that insurance company stated the liability limit is not enough to cover damage to both cars. in the letter (below) however they proposed to pay (say) $7000 to my insurance company (which is the cost of my repair!). BUT, they also requested me to waiver other right (see below).

is it reasonable for the insurance company to ask me to give up all other property related losses (such as potential diminished value)? should I sign it or reject it? I had not at fault accidents in the past but never saw such release form or requirement. thanks

This letter is in regard to the property damage claims arising from the accident cited above. Be advised, our insured’s property damage Liability policy limit of $15,000.00 is insufficient to cover the total of the damages incurred by all parties. Attached is a proposed breakdown of our policy limits into offers which are proportionate to the amount of damage each party incurred.

We have enclosed a property damage release for you and your insurer to sign in the presence of a notary.

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PROPERTY DMAGE RELEASE

That the undersigned, being of lawful age, for the sole consideration of seven thousand Dollars ($7000.00), to be paid to A Insurance Company as subrogee of Driver A, do hereby and for my/ours/its heirs, executors, administrators, successors and assigns release, acquit, and forever discharge Driver B and B Insurance Company, and his, her, their, or its agents, servants, successors, heirs, executors, administrators and all other persons, firms, corporations, associations or partnerships of and from any and all claims, actions, causes of action, demands, rights, damages, costs, loss of use, diminished value, expenses and compensation whatsoever, which the undersigned now has/have or which may hereafter accrue on account of or in any way growing out of any and all known and unknown, foreseen and unforeseen property damage and the consequences thereof resulting or to result from the occurrence on or about the xth day of y month, 2024 at or near City C.

It is understood and agreed that this settlement is the compromise of a disputed claim, and 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 releasers deny liability therefore and intend merely to avoid litigation and buy their peace.

The undersigned further declare(s) and represents(s) that no promise, inducement or agreement not herein expressed has been made to the undersigned, and that this Release contains the entire agreement between the parties hereto, and that the terms of this Release are contractual and not a mere recital.