In a car-accident, the aftermath can be too much to bear. Medical bills pile up, your car may be totaled, and the stress of missed work and physical recovery adds to the emotional toll. Most people turn to insurance companies to handle the financial consequences. In many cases, a settlement is offered — a lump sum designed to cover your expenses. But what if that settlement doesn’t reflect the true cost of your damages?
Knowing when to accept a settlement and when to sue the at-fault party can have a major impact on your recovery — both financially and personally. In this post, we’ll explore key factors to consider when deciding whether it’s time to file a lawsuit instead of settling with the insurance company.
UNDERSTANDING THE SETTLEMENT PROCESS
Insurance companies are for-profit businesses. Their main aim is to payout little and save their bottom line. After you file a claim, an adjuster investigates the incident and calculates what they believe your case is worth. They may offer a settlement early on, sometimes even before you’ve completed medical treatment.
The idea is simple: resolve the claim quickly and avoid litigation. While this may sound convenient, these initial offers are often lower than what you may be legally entitled to — especially if your injuries are severe or require long-term care.
WHEN SETTLING MAY BE APPROPRIATE
Settling makes sense in certain scenarios:
- Minor injuries: If your injuries are clearly minor (e.g., bruises or a minor sprain), and you have fully recovered, a reasonable settlement can help you move on faster.
- Clear liability: When fault is clear and the insurance company agrees to pay policy limits, settling can be efficient.
- No future damages: If there are no projected future medical expenses, lost wages, or long-term suffering, you may feel comfortable accepting a settlement.
However, accepting a settlement means signing away your right to pursue additional compensation. Once you agree, you cannot come back later and sue — even if your condition worsens.
RED FLAGS THAT SUGGEST YOU SHOULD CONSIDER SUING
There are specific red flags that indicate it may be wiser to file a personal injury lawsuit instead of settling:
- The Settlement Offer is Unfair or Inadequate
If the insurance company’s offer doesn’t fully cover your medical bills, lost wages, property damage, or pain and suffering, it may be time to consider litigation. A settlement should make you “whole” again — meaning you shouldn’t have to pay out of pocket for someone else’s negligence.
- You Suffered Serious Injuries
More serious injuries, such as spinal cord damage, traumatic brain injuries, or multiple fractures, often lead to long-term health issues. These require expensive medical care, physical therapy, and possibly time off work. Insurance companies tend to undervalue long-term or non-visible injuries. A lawsuit allows a jury or judge to evaluate the full scope of your damages — including future care and lost earning capacity.
- You’re Being Blamed for the Accident
In some cases, the insurance company may deny your claim altogether or say you were partially at fault. If comparative negligence laws apply in your state, this could reduce or eliminate your compensation. Filing a lawsuit gives you the opportunity to present evidence and prove the other party’s liability in court.
- The Insurance Company is Delaying or Acting in Bad Faith
Insurance companies have a legal duty to handle claims fairly and in a timely manner. If they are stalling, refusing to communicate, or engaging in manipulative tactics, you may be dealing with bad faith. In these situations, a lawsuit can not only recover your actual damages but may also include punitive damages for the insurer’s misconduct.
- You Have Permanent Disabilities or Chronic Pain
Permanent injuries have long-term financial implications, including the need for ongoing care and loss of quality of life. A quick settlement might not account for these future expenses. Through a lawsuit, your attorney can work with medical experts and economists to accurately project your future needs and fight for appropriate compensation.
FILING A LAWSUIT: WHAT TO EXPECT
If you decide to sue, you’ll typically begin by hiring a personal injury attorney. Your lawyer will file a complaint against the at-fault driver (and possibly their insurer) and begin the discovery process, which includes gathering evidence, medical records, witness statements, and expert opinions.
Majority of personal injury cases do not take the case to trial. Often, they are settled during negotiations or mediation, but filing a lawsuit gives you leverage and signals that you’re serious about pursuing full compensation.
THE IMPORTANCE OF LEGAL REPRESENTATION
You should not take the matter of suing an at-fault driver or an insurance company alone. Personal injury law is complex, and insurance companies have teams of attorneys working to limit what they pay out. Having an experienced car accident attorney, levels the playing field. Your lawyer can:
- Evaluate the true value of your claim
- Negotiate aggressively with the insurer
- Prepare your case for trial if necessary
- Make sure that you do not miss any legal deadlines e.g., statute of limitations.
CONCLUSION
Settling a car accident claim with an insurance company might seem like the easiest path forward and in some cases, it is. But if the settlement offer doesn’t reflect the full extent of your losses, you may be sacrificing your future well-being for short-term convenience.
Every accident is different, and there is no one-size-fits-all answer. That’s why it’s critical to consult a qualified personal injury attorney before accepting any offer. An informed decision now could mean the difference between financial stability and years of hardship.