When To Settle A Car Accident Claim

Car accidents themselves can be shocking, and the effects can continue to wreak havoc as you try and pick up the pieces. Mounting medical bills, pain, and other disruptions can be extremely stressful. If you choose to seek compensation for your injuries, you might wonder if it is worth pursuing all the way to court or whether you should just settle. While each case is unique, here are some things that you might consider when deciding whether you go to court or settle your claim.

What Is a Settlement?

A car accident settlement is an agreement reached between the parties involved in the crash, usually before going to court. In a settlement, the at-fault party or their insurance company agrees to pay the injured party a certain amount of money to compensate for damages, medical bills, lost wages, pain, and suffering. This agreement typically resolves the case without the need for a trial. Both parties must agree on the terms, and once the settlement is accepted, the car accident victim forfeits having a judge or jury make a determination. Settlements can be reached at any point, both before you have filed a lawsuit or after the lawsuit has been filed. However, the lawsuit ends the litigation. 

Reasons You May Accept a Settlement

There are certain situations where accepting a settlement makes sense. Here are some of the considerations you might have in deciding to accept a settlement.

You Have a Good Offer That Covers Your Damages

If the settlement offer adequately compensates you for your medical expenses, lost wages, property damage, and pain and suffering, accepting may be the best option for you. However, you want to be sure to calculate your total current and future expenses before agreeing. Consulting with a personal injury attorney is best, as they can often anticipate future expenses you might not be aware of.

Your Injuries Are Fully Treated

If you’ve reached maximum medical improvement and your doctor has given you a final prognosis, you’ll have a clearer understanding of the long-term costs of your injuries. Settling too early, before knowing the full extent of medical needs, could leave you undercompensated.

You Need Immediate Financial Relief

Litigation can take months or even years. If you’re facing mounting medical bills, lost income, or other urgent financial difficulties, accepting a fair settlement can provide quicker relief. One thing to note is that insurance adjusters know that many people who have been injured are in financially precarious positions, and they will intentionally lowball you. 

Liability Is Unclear or Shared

If there’s a question about who’s actually at fault for the accident, or if there’s a chance you might be found partially responsible, it might be smarter to settle. Going to court could be risky, especially if you end up being found at fault. You could walk away with little to no compensation. Settling can give you a guaranteed payout, even if it’s less than what you might have hoped for.

You Want to Avoid the Stress of a Lawsuit

Litigation can be a long, drawn-out process that takes up a lot of your time, energy, and mental focus. The back-and-forth, constant meetings, paperwork, and waiting for updates can add a ton of stress to your life. If you would rather not deal with all the uncertainty and pressure of a courtroom battle, accepting a fair settlement could be the way to go. It gives you more control over the situation and can help you avoid the emotional toll of constantly thinking about the case. 

Times You Might Decide to Proceed With The Suit Instead of Settling

While many personal injury cases will settle before things head to trial, there are situations where seeing the lawsuit out makes the most sense.

The Insurance Company Offers an Unreasonably Low Settlement

The top reason that clients will continue with the suit instead of settling is that they simply have not gotten enough money from the settlement. Now, this is not about greed, but simply about the fact that the money will not cover what the car accident victim needs to deal with expenses and pain resulting from the crash. If the insurance company’s settlement offer falls short of covering your medical expenses, lost income, property damage, and other losses, it may not be in your best interest to accept it. A lowball offer can leave you struggling to pay for necessary treatments, ongoing care, or financial obligations caused by the accident. ​​Additionally, if the insurer refuses to negotiate in good faith—delaying responses, denying valid claims, or ignoring key evidence—you may have no choice but to file a lawsuit.

This is especially the case if you have severe or permanent injuries. Serious injuries often come with lifelong medical costs and diminished earning capacity. If an insurance company refuses to acknowledge these long-term damages, a lawsuit may be necessary to secure adequate compensation.

The Insurance Company Denies Your Claim

If the insurer disputes liability or refuses to acknowledge your injuries, your only recourse may be to take the case to court.

If the insurance company disputes liability—meaning they claim their policyholder was not at fault—or refuses to recognize the severity of your injuries, settling may not be an option. In these situations, the insurer might try to minimize your claim, argue that your injuries were pre-existing, or even deny that the accident caused them at all. If they refuse to negotiate fairly or outright reject your claim, your only real option may be to take legal action. Filing a lawsuit allows you to present evidence in court and have a judge or jury decide the outcome.

Contact a Car Accident Attorney 

While these are good things to consider when deciding on accepting a settlement offer, it is important to keep in mind that settlement offers are complex. An experienced car accident attorney can help you navigate the terms of the settlement, ensuring that you are making the best decision in your case.