Should you settle or sue? Before making a decision, it’s important to weigh the insurance company’s offer against what you and your lawyer believe your case is really worth. If your lawyer assesses that your case could get more compensation than what the insurer is offering and negotiations have come to a standstill, then filing a car accident lawsuit may be your only recourse.
But how large does this gap need to be before you consider litigation?
Car accident injury claims don’t have a fixed monetary value but instead you have to take into consideration things such as compensation for intangible damages like pain and suffering, emotional distress, and loss of enjoyment of life. Since these damages cannot have a precise calculation, the value often falls within a range.
So for the sake of this article, let’s say it’s between $30,000 and $50,000. Your aim should be to settle within this range – ideally towards the higher end. If the offer is only $15,000 even after several negotiation attempts, then perhaps a lawsuit may be the way to go.
Car Accident Claims
While the option of filing a car accident lawsuit right away is available, many people choose to pursue a third-party insurance claim first and attempt to negotiate a settlement. This involves reaching out to the at-fault driver’s insurance company and providing them with the details of the accident. They will assign your case to an insurance adjuster who will investigate it thoroughly and determine how much car accident settlement you should get.
What is a Car Accident Settlement?
The injured party, known as the “claimant,” seeks compensation from the at-fault party’s insurance company for damages like property damage, medical bills, lost wages, and pain and suffering. The insurer then presents a settlement offer, which the claimant can accept, reject or negotiate further.
Once both parties have agreed on a settlement amount, the claimant (you) signs a release document, in which the insurer commits to pay a specified amount in exchange for your agreement not to pursue further legal action.
Advantages and Disadvantages of a Car Accident Settlement
Car accident settlements offer several advantages. For one, those injured in the accident can get their compensation faster while reducing any case-related expenses like attorney’s fees court lawyer costs. Another advantage is that it’s less stressful and time-consuming as you won’t have to deal with several court appearances.
But it has its drawbacks too. One significant disadvantage is the possibility of receiving less compensation than if you were to pursue a lawsuit and win. Settlements often require compromises, which means that you may not receive the maximum amount of compensation possible. Also, settling too quickly poses a risk for those who have not reached maximum medical improvement. You could be undervaluing your claim and receive insufficient compensation for any ongoing or future medical expenses.
How to File a Car Accident Insurance Claim
Filing a car insurance claim has become more accessible these days and you can even do it online. When filing, be ready with important details such as your name, contact information, your vehicle’s year, make, and model, as well as the names and contact details of other parties involved.
For first-party claims, make sure that you have your car insurance policy number onhand. For third-party claims, the insurer may inquire about your own insurance provider’s details. It’s advisable to provide only basic information in a third-party claim and then leave details about personal injuries for later through your settlement demand letter, along with your supporting medical documents.
How Likely is It for My Case to Reach a Settlement?
Just like the majority of car accident claims, there’s a high probability that your case will also end in a settlement. The main consideration here revolves around weighing the risk of losing at trial, which could result in zero compensation, against the insurance company’s settlement offer and your own valuation of your car accident claim.
Car Accident Lawsuits
There are instances where settling your car accident claim isn’t viable such as when the other driver is disputing fault or the insurance company is lowballing you with their offer. In these circumstances, you have the option pursue your case in court. Here’s a glimpse into what you can expect when your car accident claim advances to litigation.
Advantages and Disadvantages of Taking Your Case to Court
Suing the at-fault party and taking them to court could mean you will get a significantly higher compensation. Juries can be unpredictable and the final award amount hinges on their deliberation. Moreover, if you have a skilled lawyer with a lot of courtroom successes, your case can be presented a lot more effectively to convince the court that you deserve a fair compensation.
But it’s not always easy. The legal process will require significant time and effort on your part. You’ll have to pay court fees and other costs, although many lawyers will only charge you for these costs if you receive your compensation/award. And lastly, there is the risk of receiving no compensation if the verdict is against you.
Filing a Car Accident Lawsuit
In every state, small claims courts offer a straightforward and cost-effective avenue for resolving disputes that involve modest sums of money. But if your claim exceeds the small claims court limit in your state, you’ll need to take your case to a civil court. Here’s what basically happens when you file a car accident lawsuit:
Step 1: Filing and Serving a Complaint
The complaint serves as the initial formal document outlining your allegations against the defendant and detailing how you suffered due to their actions.
Step 2: Response from the Defendant
The defendant is given a specific timeframe (often 30 days) to respond to the allegations.
Step 3: Discovery
During the discovery phase, both parties exchange essential information about the case through various means such as written interrogatories, depositions and requests for documents such as medical records.
Step 4: Settlement Negotiations
Settlement discussions often take place throughout the lawsuit proceedings as your lawyers delve deeper into the case and weigh the potential risks and benefits of proceeding to trial. Judges may even mandate a settlement conference with the involved parties before the trial commences.
Step 5: Trial
If a settlement isn’t reached, the case goes to trial and a judge/ jury evaluates the evidence presented and determines whether the defendant is liable for the car accident or not. If liability is established, they will deliberate on the appropriate amount of damages to award the plaintiff (you).
How Long Will a Car Accident Lawsuit Take?
Car accident lawsuits have a structured process but the timeframe for each stage varies. Generally speaking, it should span at least a year from initiation to conclusion. Some cases can be resolved even as early as the discovery phase (step 3) while others can drag on for years.
Determining the Amount You Can Sue for After a Car Accident
When suing the at-fault party after a car accident, you have the right to seek compensation for all of your damages. At the very least, you should try to recover your accident-related medical expenses and property damage. However, if you’ve suffered due to someone else’s negligence, you’re entitled to additional compensation.
In practical terms, the insurance coverage of the at-fault driver significantly influences the amount of compensation you will receive. If the driver’s insurance policy limit is not enough to cover your damages or if the driver is underinsured, then the insurer will only reimburse you up to the policy’s limit.