Is It Better To Settle Or Go To Court?

This is one of the most common questions that a victim of a negligence claim will ask. Which is the better option for you?

The answer is that it depends on the facts of your case, your injuries, and the settlement offers that you receive, if any.

The Answer Depends

One of the first steps you will need to take alongside your attorney as you prepare to file an insurance claim is to understand your losses. Whether it is an automobile insurance claim, worker’s compensation claim, or another injury claim, limits may apply to the damages available to you.

Your attorney will help you calculate your damages and account for the maximum compensation that may be available to you under the law for your injuries and other related losses. The calculation of damages by your attorney is not an exact calculation or formula of the payout you will ultimately receive but rather it is an informational tool and resource that you will use to help guide your decisions throughout the case.

Insurance companies will make their own calculations to consider the injuries and impact of those injuries as they see them. It is unlikely that the calculations of an insurer will align with those by your attorney because they will make every effort to shortchange your recovery. It is even possible that an insurance company may not even initially reach the stage of calculation of damages because they may find grounds on which to deny your claim outright.

You Must Consider Your Priorities

Once you understand the losses you will accrue due to your injuries, you can better evaluate potential settlement offers. A large part of the evaluation and consideration of a settlement offer with your attorney will revolve around your priorities and interests. The most common considerations a victim will make when deciding whether or not to accept a settlement are time, money, and justice for their injuries and damages.

Time

The reality is that lawsuits take time. Lawsuits often take much longer than settlements. It may feel overwhelming for some victims to prolong a resolution in their case, and they may view a quicker resolution through a settlement as more appealing than a potentially drawn-out trial and verdict.

Money

Negotiations for offers of settlement by an insurer may not meet the maximum compensation you are eligible for under the law. It is between you and your attorney to consider whether the amount of a settlement offer you receive is reasonable and will help you move forward.

If you consider a settlement fair, you may decide to accept it and forgo the possibility of more compensation to resolve the matter sooner. However, if you cannot come to a negotiation agreement with an insurer or another at-fault party and the offers of settlement are unreasonably low, or a denial of your claim occurs, you may have little choice but to proceed with a lawsuit in court.

You Must Consider The Probability You Will Win In Court

Going through a trial and a verdict is not a guarantee of compensation. It can be a risk to proceed with a trial and not accept an offer of settlement. In some cases, however, the risk not only makes sense but might be necessary.

Insurers don’t settle every case. Each insurance company, insurance representative, or other liable third party is different and what they might offer in one scenario will completely differ in another, even if the cases appear similar. There is no way to predict with absolute certainty what stance an insurance company will take and the offers they will make in any given case.

An attorney on your behalf, however, has the experience and knowledge to guide you to the best course of action. A lawyer will consider the details of your case and the outcome that you are seeking to advise you as to what is likely to get you the best possible resolution.

Part of this guidance will include an evaluation of the evidence you have available and the support for your claim and injuries. Your attorney can give you some insight into your chances of winning the case and court and the process that will entail through a trial and verdict.

You May Need To Fight For The Compensation You Need

In some circumstances, you may not have much of a choice—you must file a lawsuit and proceed to a trial. If an insurance company or other party at fault disputes the facts of the case and does not accept fault or liability, then they will not settle. In these circumstances, a lawsuit may be your only option to pursue compensation in your case.

Another circumstance in which a lawsuit can become necessary in a personal injury claim is when an insurer or at-fault party does not offer fair compensation for the damages in your case. The extent of your injuries and the impact of those injuries on your life will greatly influence the amount of monetary compensation you may recover.

Damages in a personal injury case can include both economic and non-economic damages such as medical costs, income losses, and pain and suffering. The calculation of each damage, however, can differ depending on the party performing the calculation.

An insurer wants to limit their liability to you as much as possible and may fail to include certain damages in their settlement or make offers that are well below the value and worth of your claim. If the settlement offers are nowhere near the losses you incurred, then with the guidance of your attorney, you may need to proceed to trial and await a verdict by the court to increase the likelihood of a successful recovery.

Do Insurers Want To Settle Out Of Court?

In many situations, an insurance company chooses to settle as quickly as possible. When liability is apparent and there is little to no question of fault in the accident, an insurer may move to try to settle with a victim as soon as they can.

Yes, If They Believe They Can Avoid Losing More Money

In cases where a personal injury victim has no legal representation, an insurer may want to close the case quickly and offer low settlements to prevent the victim from pursuing additional compensation once they are aware of their legal rights to additional damages.

Furthermore, in cases where a victim suffers severe injuries that can have lasting effects on their life, an insurance company may push to reach an agreement sooner rather than later. Serious injuries often have complications and other medical challenges that can arise years after an accident.

An insurer knows that if a victim discovers additional injuries or complications, they may be looking at a bigger loss to their company in the form of a bigger payout to the victim or a significantly higher award through a court if the case goes on trial.

Just like you, an insurer does not know what will happen in court. They can only make assumptions about the facts of the case and their past experiences. Ultimately, they are also at risk when proceeding through a trial and can end up paying out much more than they were planning to if they do not offer a reasonable amount of settlement through negotiations.

At the end of the day, insurers are in the business of making money. The company’s main motivation and goal for each claim is to prevent as much of an impact on its bottom line as possible. This not only considers the possible payment of compensation to you, but the company and its representatives must also consider the time and money that it will cost them if a claim has to head to court.

When Might An Insurer Want To Go To Court?

Truthfully, most insurance claims will not make it to court. The majority of personal injury insurance claims find common ground and settle outside of court. An insurance company does not necessarily want to go to court but they flat out may just not want to pay out your claim.

When They Dispute Facts Or Fault

If an insurer does not accept liability or only accepts partial liability after an accident and disputes fault for your injuries, they may deny a claim or only offer a partial payment based on what they believe is their percentage of fault, if any. In some cases, they may accuse you of an accident or may blame another party for your damage.

Whatever the case may be in a situation where an insurer does not accept responsibility for the injuries and damages to you, they will not make a settlement offer. In this case, it is often your best and only option to pursue compensation through a lawsuit in court.

When They Cannot Agree As To The Damages You Seek

In some situations, an insurer will refuse to pay the fair amount of damages in a claim or even come close to covering your losses.

Negotiating a settlement is not mandatory, and just as you have the option to decline a settlement offer, an insurance company may take its chances in court rather than pay the maximum compensation on a claim or increase their settlement offer to you.

How Long Do You Have To File A Claim Or Lawsuit?

The timeframe for filing an insurance claim or lawsuit will differ. The policy’s terms often dictate the insurance claim filing process. In many instances, insurers require that a claim filing take place in the days and weeks that follow an accident. You must follow the terms in your policy coverage to successfully pursue compensation.

How Do You Know If You Should Accept A Settlement Offer?

Without the assistance of an attorney, it can be difficult to know when a settlement offer is acceptable in your case. It is a good idea to contact a Orlando personal injury lawyer as soon as possible whenever you suffer an injury that may be due to someone else’s negligence. An attorney can evaluate the merits of your case and advise you as to the legal options that can be available to you in your case. Once you hire a lawyer, they can help you gather evidence for your claim and case and discover all parties that may owe you compensation for your losses.

A lawyer will take the time to understand your injuries and losses and protect your rights against all competing interests in your case. They will work with you to calculate your damages and negotiate a settlement against the appropriate insurance companies on your behalf.

With an attorney at your side, you will have a higher chance of reaching a positive resolution in your case. You will also enjoy the resources and tools to decide when a settlement offer is right for you or if you need to go to court.