Car accidents might be unfortunate, but they cannot be entirely prevented. No matter how careful you are on the road, other individuals might not observe the same level of care. Depending on the severity of the accident, the parties involved could sustain physical injuries and damage to property. Hence, urgent medical care would be necessary. The damaged property might also need to be paid for or replaced.
After a car accident, you have two options regarding compensation—accepting a settlement or filing a lawsuit. In most cases, the parties will go to trial if a compromise or settlement agreement is not reached. An injured party will sometimes agree to accept a low settlement just to avoid a lengthy court battle.
In cases where the settlement offered is grossly inadequate, the injured party must file a case in court. Suing the at-fault party in court is the only way to secure fair compensation in these instances.
This article will explain the advantages and disadvantages of agreeing to a settlement and suing the at-fault party. The discussion would help you decide which course of action is best if you were recently involved in a car accident.
What Does Settling A Car Accident Injury Mean?
After a car accident, the injured party has to file an insurance claim to be reimbursed for the damages and medical expenses incurred after the accident. Since car insurance benefits are not enough, the victim can opt to file a claim in court or negotiate a settlement with the other party.
A settlement usually consists of a payment made by the at-fault party to the injured party. This payment is compensation for the damages and injuries sustained by the innocent party during the accident. Typically, the settlement amount is negotiated and agreed upon out of court. Because the process is quick and easy, many car accident cases are solved through settlement.
Nevertheless, the fact that many car accidents are resolved through settlement doesn’t mean that this method is best for everyone. Settling a car accident injury claim outside of court has advantages and disadvantages. Below are the advantages:
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The Process Is Quick
Negotiating a settlement is not lengthy since they’re less formal than court trials. The process would not even require a lawyer. The parties involved in the case can immediately agree on an amount, execute an agreement, give compensation, and part ways. Negotiations on the terms and amount might take longer, but this depends on the parties.
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Settlement Procedures Are Less Stressful
As earlier stated, settling a car accident claim doesn’t take long. As a result, both parties are relieved of the stress of attending court hearings that can drag on for months or years. While you might need to answer a question or two during settlement, the proceeding isn’t as stressful as testifying and filing motions in court.
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Settlements Are Private
Unlike court cases, settlements do not become part of the public record. Most settlement details remain private unless the parties choose to divulge them publicly. This is advantageous for parties who don’t want the details of the accident to be accessible to anyone.
Disadvantages Of Settling A Car Accident Injury
Besides the advantages discussed above, agreeing to a settlement has the following disadvantages:
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You Can’t Appeal The Settlement
Once you’ve agreed to and signed the settlement, there’s no chance of recovering anything more from the company. Unlike court decisions that can be appealed to a higher court, settlements are generally final once an agreement has been signed and executed. So, if you later realize that the settlement is unfair, you cannot seek legal assistance.
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The Payout Might Not Be Enough
At first glance, most settlements seem generous. The at-fault party might even offer an amount that is more than enough to cover medical bills. But when car accident claims are settled through court, various types of damages are taken into account.
Aside from reimbursement for medical expenses, compensation for property damages and emotional suffering could also be granted by a judge. This is not available in settlements unless the parties have agreed to it.
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The At-Fault Party Can Go On Without Consequences
Resolving a car accident claim through a settlement might be convenient, but this also means that a negligent driver will not fully learn accountability. Letting the at-fault party face their day in court is the best way to teach them a lesson.
Filing A Car Accident Injury Claim In Court
When the parties cannot reach a settlement or there is doubt as to who the negligent party was, a car accident case needs to be settled in court. So, instead of negotiating with the other party, you have to present facts to the court and hope for a favorable judgment.
However, like settlements, filing a car accident lawsuit has advantages and disadvantages. Let’s first discuss the advantages:
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You’re Likely To Get Fair Compensation
If you have a strong case and the other party is determined to be at fault, you’ll likely be awarded more than a settlement could offer. As mentioned earlier, courts also grant compensation for damages and emotional pain or suffering. Hence, there’s a huge chance that the compensation is higher than a settlement agreed upon by the parties.
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You Can Appeal The Ruling
Another advantage of filing a car accident lawsuit is the ability to appeal the ruling. If you’re unsatisfied with the judgment or feel that the court did not appreciate certain evidence, you can choose to file an appeal and challenge the ruling.
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You Have A Lawyer As A Representative
With a lawyer representing you in court, you’re more likely going to secure fair compensation. And if you’re accused as the negligent party, a lawyer can also defend you and protect your rights. A car accident lawyer understands the laws that apply to your situation, and they know what to do and say to win the case.
Disadvantages Of Filing A Car Accident Lawsuit
Filing a car accident lawsuit ensures you are better compensated. Your rights are also fully protected, and you’ll have legal representation in court. Unfortunately, filing a car accident lawsuit also has disadvantages:
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The Results Are Out Of Your Control
Once you file a car accident lawsuit, the judgment is now within the court’s discretion. All you can do is state your facts and show evidence. The opposing party will also do the same. Therefore, there is no guarantee that you will get a favorable ruling since the court will have to weigh both sides. In settlements, however, you can control the outcome because you can negotiate for the amount you receive. You could even refuse the settlement until the other party raises the amount.
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The Process Is Lengthy
Court procedures are quite complicated and can take up a lot of time. After filing the case, the court will have to set a schedule. Before the ruling, you must return to court several times to testify and present evidence.
There might also be instances where a scheduled hearing will be canceled due to various reasons. Such reasons include the unavailability of a witness, and the absence of a lawyer or judge. Aside from that, the other party might even indulge in delaying tactics. Overall, a car accident lawsuit can take up to a year before the verdict.
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The Process Is More Costly
Filing a car accident lawsuit requires you to pay court fees. You must also figure out how to pay the personal injury attorney representing you in court. Remember that the trial can drag on for months or years, and you must pay your lawyer’s appearance fees for every hearing. However, this isn’t the case when settling a car accident injury claim outside the court since you don’t need to hire an attorney.
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You Might Not Receive Compensation
Suppose you file a car accident lawsuit and lose. In that case, you might not receive any compensation. As a result, you incur additional loss from paying court and attorney costs. However, this isn’t the case when settling the matter out of court. While the other party might offer to pay you less than you deserve, you’re still guaranteed to receive such an amount.
Conclusion
The information provided in this article explains what car accident settlements and a lawsuit are. It also discusses the advantages and disadvantages of each process to help you understand what to expect from each.
Agreeing to a settlement is the quickest way to get compensation. This process is also less stressful because it is very straightforward. Both parties can also discuss the issues and agree on the terms and amount involved.
However, when filing a lawsuit, the process is more costly and complicated. On top of that, you cannot control nor predict the outcome. And if you lose the case, you not receive any compensation.
For these reasons, many drivers prefer settlement over lawsuits, especially since they’re guaranteed some compensation. But in cases where the other party refuses accountability, then the only way to settle the issue is to file a car accident claim in court.
