After a car accident, one of the most important decisions you’ll face is whether to settle your claim or pursue litigation. While settling your claim outside of court can offer a faster and less costly resolution, there are situations where litigation might be the better option. Understanding when to consider litigation over a settlement is crucial in ensuring that you receive fair compensation for your injuries and damages.
The Pros and Cons of Settlement vs. Litigation
Before diving into when litigation might be necessary, it’s important to understand the differences between settlement and litigation. Settling a claim typically involves negotiating with the insurance company, where both parties agree to a compensation amount without going to court. This process is faster, more cost-effective, and less stressful compared to litigation.
However, litigation involves taking your case to court, where a judge or jury will decide the outcome. While this process can be lengthy and expensive, it may be necessary in certain situations, especially if the insurance company is unwilling to offer a fair settlement or if liability is in question.
When to Consider Litigation
- When the Insurance Company Offers a Low Settlement
One of the most common reasons to consider litigation is when the insurance company offers a settlement that is much lower than what you deserve. Insurance companies are for-profit entities that aim to minimize payouts, and it’s not uncommon for them to offer an initial settlement that is far below the true value of your claim.
If your settlement offer doesn’t adequately cover your medical bills, lost wages, pain and suffering, and other damages, it might be time to consider litigation. A car accident lawyer can help you assess whether the settlement is fair and, if necessary, take the case to court to seek the compensation you truly deserve.
- When Liability is Disputed
In some cases, the insurance company or the other driver may deny liability, arguing that you were partially or fully responsible for the accident. This can make settlement negotiations challenging, especially if they have evidence or arguments that contradict your version of events.
If there is a dispute about who was at fault in the accident, litigation may be necessary to resolve the issue. In court, both parties will present evidence, and a judge or jury will determine who is liable. If you have strong evidence supporting your innocence, litigation can help ensure that you are not unfairly blamed for the accident.
- When the Injury or Damage Is Severe
Another scenario where litigation might be the best option is when your injuries are severe, long-term, or life-changing. Serious injuries, such as spinal cord injuries, traumatic brain injuries, or permanent disabilities, often require extensive medical treatment and rehabilitation. These cases can be more complex and involve higher settlement amounts.
If the insurance company isn’t offering a settlement that fully covers your medical expenses and long-term care, litigation might be the only way to ensure that you are compensated for your future medical needs. Personal injury lawyers with experience in car accident cases can help you estimate future costs, including ongoing medical treatment, lost earning potential, and pain and suffering.
- When the Insurance Company Acts in Bad Faith
Insurance companies are obligated to act in good faith when handling claims, but sometimes they engage in unfair practices to avoid paying out claims. This can include delaying your claim, misrepresenting your coverage, or denying valid claims without proper justification. When an insurance company acts in bad faith, litigation may be the best way to force them to meet their obligations.
If you believe that the insurance company is acting unfairly or in bad faith, it’s important to consult with an attorney who specializes in car accident claims. Your lawyer can investigate the insurer’s practices and, if necessary, take legal action to hold them accountable.
- When You Need to Set a Precedent
In some cases, individuals may pursue litigation not just for the compensation but also to set a legal precedent. For instance, if the accident involves a public entity, defective product, or other complex legal factors, pursuing litigation can help protect the rights of others in the future and bring attention to an important issue.
Litigation can be a powerful tool for holding responsible parties accountable and ensuring that justice is served, especially in cases where the stakes go beyond just financial compensation.
The Litigation Process: What to Expect
If you decide to pursue litigation, it’s important to understand the process. Litigation involves filing a formal lawsuit, gathering evidence, conducting depositions, and preparing for trial. Your car accident lawyer will work closely with you throughout the process to gather necessary documentation, such as medical records, police reports, and witness statements, to build a strong case.
The process can take several months or even years, depending on the complexity of the case, the number of parties involved, and the court’s schedule. If a settlement cannot be reached, your case will go to trial, where a judge or jury will decide the outcome. This can be a stressful and time-consuming process, but it’s sometimes necessary to ensure that you receive the compensation you deserve.
Conclusion
While settling a car accident claim outside of court is often the quickest and least expensive option, litigation may be necessary in certain situations. If the insurance company offers an unfair settlement, if liability is disputed, or if you’ve suffered severe injuries, pursuing litigation might be the best way to secure fair compensation. Working with an experienced car accident lawyer can help you navigate this decision and ensure that you make the best choice for your case. Whether you settle or go to court, your lawyer will be your advocate every step of the way.