Deciding whether to accept a settlement or pursue a lawsuit after a car accident can be challenging. While a reasonable settlement should be accepted when possible, insurance companies often undervalue claims until legal action is taken. Here’s a guide to help you weigh your options.
Key Questions to Consider
- Will Filing a Lawsuit Lead to a More Fair and Adequate Settlement?
- Many cases settle for significantly higher amounts after a lawsuit is filed.
- Insurance companies often fail to offer full value unless they feel the pressure of litigation.
- Will Filing a Lawsuit Increase Costs, Frustration, and Time?
- Filing a lawsuit involves case costs, time, and emotional strain.
- However, in many cases, the increased settlement far outweighs the costs.
Recent Examples of Lawsuits Leading to Better Settlements
Example 1: Torn Shoulder Labrum in a Rear-End Collision
- Location: Center Street, Orem, UT 84057.
- Injury: Torn shoulder labrum (former college football player).
- Initial Settlement Offer: $29,000, later increased to $35,000.
- Policy Limits: $50,000 per person, $100,000 per occurrence.
- Result After Filing a Lawsuit: Full $50,000 policy limit tendered.
Example 2: Scooter vs. Car
- Location: Near Utah Valley University, Orem, UT 84057.
- Injury: Mild muscle strain and sprain (no radiology evidence of herniations).
- Initial Settlement Offer: $0 (no offer).
- Policy Limits: $25,000 per person, $65,000 per occurrence.
- Result After Filing a Lawsuit: Immediate $12,000 settlement offer.
Example 3: Rear-End Collision with Neck Ligament Injuries
- Location: University Avenue, Provo, UT 84606.
- Injury: Ligament injuries requiring physical therapy and injections.
- Initial Settlement Offer: $29,000, then $33,000.
- Policy Limits: $50,000 per person, $100,000 per occurrence.
- Result After Filing a Lawsuit: Settled for $50,000 policy limits, enabling an additional underinsured motorist claim.
Example 4: Case with Significant Physical Therapy Bills
- Details: Client received a strong pre-filing offer. After litigation costs and frustrations, the case settled for only slightly more than the initial offer.
- Lesson: Filing a lawsuit is not always worth the added costs if the initial offer is reasonable.
Why Some Attorneys Never File Lawsuits
Limited Experience
- Many personal injury attorneys avoid filing lawsuits, let alone taking a case to jury trial.
Impact on Settlement Value
- Without the threat of litigation, insurance companies are less likely to offer fair compensation.
- Hiring an attorney who has never tried a case can lead to lower settlements.
The Importance of Financial Resources in Litigation
Ability to Hire Experts
- Expert witnesses (e.g., medical specialists, economists) are often critical for proving damages.
- Attorneys or firms without the financial resources to hire top-tier experts may see their clients’ cases devalued.
Preparedness for Trial
- Insurance companies recognize when an attorney is ready and capable of going to trial, which can prompt them to settle for a fair amount.
When to Settle vs. When to File a Lawsuit
- Settle: When the offer fairly compensates you for your injuries and avoids unnecessary costs.
- File a Lawsuit: When the settlement offer is inadequate, and you stand to gain significantly more through litigation.
Contact an Experienced Trial Attorney
Hiring an attorney with the skills, experience, and resources to take your case to trial is essential. Utah car accident lawyer Jake Gunter has nearly 20 years of experience trying injury lawsuits to juries and achieving fair settlements for his clients.
Call/Text for a Free Consultation
- Phone: (801) 373-6345
- Ask for Jake
Conclusion
Settling a car accident case without filing a lawsuit may save time, but it often leaves money on the table. If you want to ensure you receive the compensation you deserve, work with an experienced attorney like Jake Gunter who is ready to fight for you in court.
