If you’ve suffered an injury, you’re probably thinking about two things: healing as fast as possible and getting financial compensation to cover your bills. When it comes to money, you might need to pay for more than just medical expenses.
For instance, if you can’t work and you don’t have enough savings, you probably need immediate money for household bills like electricity and internet. The insurance company responsible for paying your claim knows most people need money fast and will try to get you to accept a lowball settlement.
You might be tempted to accept whatever they’re offering just to pay the bills, but that can backfire. Insurance companies lowball settlements, knowing many people are desperate enough to take whatever they can get. But in many cases, accepting their offer means leaving money on the table.
Your other option is to file a lawsuit. You’ll still have the opportunity to settle, but you’ll be able to recover more money. If you’re on the fence between settling with an insurance company to get fast cash and pursuing greater compensation in court, here’s what you need to know.
If you sue, your case will likely settle (but for more)
If you refuse to accept a settlement directly from the insurance company and go through the court, there’s a good chance your case will still settle. However, the difference is that a lawsuit settlement is likely to be much higher than the amount offered out of court.
The majority of personal injury lawsuits never make it to trial, and that’s not a bad thing. Trials can take months or years, while settlements can be finalized in weeks. A settlement negotiated by a competent personal injury attorney will provide you with a higher payout compared to settling with an insurance company directly. This route will also cost less than a trial and provide you with a guaranteed payout. Juries can be unpredictable, and even strong cases are lost. If you proceed to trial and lose, you could end up with even less money than what you were initially offered.
The benefits of settling your injury claim through a lawyer
Oftentimes, settling to avoid going to trial is the smarter move. It will give you access to finances faster and will avoid the emotional stress involved in a trial. Courtrooms are stressful and there will be public exposure. Settling out of court will help you move on more quietly. Since settlement agreements are often confidential, the details of your settlement won’t become public record.
When it makes sense to settle out of court
Settling out of court to avoid a trial is the best way to get guaranteed compensation faster – but be prepared to fight for long-term medical care, lost wages, and pain and suffering.
Regardless of what you’re offered, your attorney will use their expert negotiation skills to recover a fair and generous settlement on your behalf. Sometimes all it takes is filing a lawsuit to force an insurance company to increase its offer.
When it makes sense to proceed to trial
In some cases, it’s worth going to trial. If your attorney suggests not settling and taking your case to trial, it’s because they know the potential for compensation is much higher. Jury verdicts can greatly exceed settlement offers, especially when there are punitive damages involved.
The downside is that juries are easily swayed by emotion, and even if you win, you’re not guaranteed immediate payment. The other party might appeal and drag the case out for years. It’s risky and the stakes are high, but if your attorney thinks a jury trial is the best move, there’s a reason.
Factors to weigh before making your decision
Should you settle with the insurance company? File a lawsuit and settle out of court? Fight it all the way to a jury trial? There is no right answer for everyone. Which route you should take depends on the strength of your evidence, your ability to prove liability, your tolerance for stress, and your current financial situation.
Don’t move forward without a lawyer
Don’t make the decision alone. Talk to a lawyer and get a realistic estimate of your claim’s value that factors in future expenses.
While a small handful of people benefit from settling directly with an insurance company, that’s not the case for the majority of people. Only a personal injury lawyer can assess the true value of your case to determine which course of action is right for you, but you’ll likely need to file a lawsuit to get the compensation you deserve.
