How Personal Injury Cases are Settled

When you are in an accident caused by someone else, there are a few ways to be compensated by the at-fault party. Their insurance can offer a personal injury settlement out of court, or your attorney can sue them in civil court with a lawsuit. While it is possible for a lawsuit to result in a larger award, the majority of personal injury cases are settled before ever going to trial.

Personal Injury Settlements Explained

Settlements are reached when the insurance adjuster or defendant makes an offer of payment to you (the plaintiff) and it is accepted. This can happen at several stages of the process:

• Before a lawsuit is filed, during negotiations with the insurance company
• After a lawsuit is filed but before trial, often during mediation or discovery
• During trial, before a jury reaches a verdict

Once a settlement agreement is reached, the plaintiff must sign a full liability release, relinquishing all potential claims against the defendant from the underlying accident or injury. For example, in an auto accident case, the insurance company may offer to pay $80,000 to reach a settlement. In order to receive that amount, the plaintiff must agree not to file a lawsuit or pursue other legal remedies in connection with the accident.

Insurance Companies and Personal Injury Settlements

When insurance companies are involved, settlement offers are made in the vast majority of cases. This is because insurers expect to pay out a certain number of claims as part of their business model. Insurance companies also possess the assets to pay out claims and prefer settlements for several reasons:

• Avoiding litigation costs: Going to trial is expensive for insurance companies. Attorney fees, expert witnesses, court costs, and the time involved make settlement the more economical option in most cases.
• Reducing uncertainty: Juries are unpredictable. An insurer may prefer to pay a known amount in settlement rather than risk a much larger verdict at trial.
• Closing claims quickly: The longer a claim remains open, the more it costs the insurance company in administrative overhead. Quick settlements help them manage their books.
• Controlling exposure: In cases with strong evidence of negligence, going to trial risks a large jury award plus potential punitive damages. Settling puts a cap on their liability.

However, the fact that insurance companies want to settle does not mean their first offer is fair. Initial settlement offers are almost always far below the true value of your claim. This is where having an experienced attorney makes the difference. We know what your case is worth, and we negotiate aggressively to ensure you receive full and fair compensation.

Why Having an Attorney Matters

Our firm has over 50 years of experience defending the injured from insurance companies who want a quick and unfair settlement. We know your rights and what you deserve, and we communicate with you every step of the way. Our attorneys will negotiate with the insurance companies until we achieve the highest settlement we believe you are entitled to. If necessary, our attorneys are always prepared to take your case to trial to fight and win.

We never take a case that we don't believe we can win, because your time is important — and we never charge a fee unless we win your case.