Should you settle your car accident dispute or take it to court? This is one of the biggest decisions an accident victim will face.
Get it right and life gets better. Make the wrong choice and you could pay thousands in legal fees for a worse result than what you were originally offered.
Here’s the problem. Most people don’t know what to do. And that’s why so many accident victims settle for less than they deserve or spend years fighting in court when they didn’t have to.
Here’s what you’ll learn:
- What Does “Settling Out of Court” Actually Mean?
- When Settling Out of Court Is the Best Decision
- When You Should Take a Car Accident Dispute to Court
- How a Car Accident Lawyer Helps With Both Options
- Factors that Help You Decide
What Does “Settling Out of Court” Actually Mean?
Both sides come to a financial agreement without a judge or jury present. In most car accident cases, that means the victim, their car accident attorney, and insurance company for the person who caused the wreck sit down and negotiate a settlement.
Negotiation. That’s all it is.
Insurance makes an offer. Your lawyer counters. Both sides throw out numbers until they reach an agreement that settles the case.
Why does this matter? Less than 3-5% of all car accident cases go to trial, while 95-97% settle out of court. So, the vast majority of disputes end with a settlement.
And there’s nothing wrong with that.
According to a survey by Martindale-NOLO, the average car accident settlement in the United States was $23,900. That number increases significantly when serious injuries, loss of income, and mounting medical bills are factored into the equation.
When Settling Out of Court Is the Smart Move
While most car accident claims can settle, some are better suited for it than others. Here are situations where settling is almost always the better option:
Liability is not disputed. When the facts of the case are straightforward and all point to the other driver being at fault (police reports, witness testimony, etc.), there’s no benefit to trial. And significant liability evidence empowers your lawyer at the negotiation table.
Injuries aren’t severe. Soft tissue damage, whiplash, and simple fractures have predictable recovery times. When the full extent of your damages can be calculated with certainty, settlement discussions are quick.
You need resolution ASAP. Settlements take anywhere from 6 months to 18 months. Trials can take two to three years. If you have bills coming out of your ears and need relief now, settling is the smarter option.
There are other advantages to settling:
- Costs you less money — think no expert witnesses, court costs, etc.
- More predictable result — both sides agree to a number before signing the settlement
- Privacy — allows the parties to keep the facts and details out of the public record
- Less stress — no cross-examination or chance of an unsympathetic jury
Got it. Let’s look at when going to court makes sense.
When Taking Your Car Accident Dispute to Court Makes Sense
Again, most car accident claims settle. But here are clear-cut reasons to litigate a dispute:
The insurance company is acting in bad faith. Insurance companies are businesses that answer to stockholders. When possible, they pay out as little as possible on claims. If the insurance company’s offer doesn’t fully cover expenses, your best tool is litigation.
Liability is in question. If the person who caused your wreck denies fault, or police/fact evidence is vague, your only option to have a judge or jury decide is through trial.
Injuries are serious. When accident injuries are permanently disabling, damage your spinal cord, or cause traumatic brain injuries, the resulting medical bills will likely exceed your insurer’s policy limits. Lawsuits may be the only way to recover the compensation you deserve.
Don’t settle if:
- You don’t have all the facts. Insurance companies will often push accident victims to settle early, while police reports are still pending. Don’t succumb to pressure to accept less than you deserve.
- You’re emotional. Most people want to “throw the book” at the person who caused their wreck. Take a breath and let your lawyer guide you. They’ve seen it all before.
- You don’t have legal representation. If you plan to negotiate a settlement on your own, expect to be low-balled. Insurance companies have teams of professionals working for them. You should too.
Something else to know about going to court:
Depending on the case’s complexity, trials can cost anywhere from $10,000 to $50,000+. That includes expert witnesses, depositions, filing fees, etc. Just because you can’t afford an attorney doesn’t mean you should litigate on your own. But it’s something to consider.
How a Car Accident Lawyer Helps With Your Decision
You should have a lawyer regardless of whether you settle or go to court.
During negotiations, your attorney knows how to calculate the maximum value of your claim. That includes future damages like medical treatment, loss of earning capacity, and non-economic damages such as pain and suffering. Without a lawyer, insurance companies know victims will simply accept less money.
But what about if you take your case to trial? Plaintiffs only win about 50% of personal injury lawsuits that go to court. But that number jumps when you have a skilled attorney that knows how to make a jury understand your situation.
Your attorney won’t wait for an offer to respond — they’ll map out your case from day one.
Factors that Help You Decide
Every case is different. But here are things to keep in mind when deciding whether to settle or litigate:
- Strength of your case — a stronger case means a better settlement offer
- Severity of injuries — serious injuries give more reason to go to court
- Insurance policy limits — a low cap means you may not receive full compensation without filing a lawsuit
- Time — you may need a quick settlement to help with immediate bills
- Local court trends and jury leanings — some jurisdictions are more prone to favoring the plaintiff over the defendant and vice versa
Discuss these variables with your attorney to make an educated decision.
The Final Verdict: Court or Settlement?
Should you settle or go to court with your car accident dispute?
For most people, the answer is settle.
It’s cheaper, quicker, and much less stressful. But if the insurance company isn’t offering what you deserve, your injuries are serious, or liability is disputed — you have the option to file a lawsuit.
Never forget: just because an insurance company makes you an offer doesn’t mean you have to accept it. Your attorney is there to help you decide.
To quickly recap:
- The vast majority of car accident claims settle out of court
- Settle if liability is clear and the settlement offer is fair
- Going to court may be your only option if you’re offered a bad settlement or liability is denied
- Having a car accident lawyer is the biggest influence on your decision
- Consider injury severity, strength of your case, and insurance policy limits when making your choice
Don’t get rushed into making a decision. Car accident attorneys do this day in and day out. Leave your negotiation and trial decisions in their hands.
