Most Accident Claims Settle Out of Court (2024)

After an accident someone else caused, you can seek compensation in one of two ways: through a personal injury insurance settlement or a civil lawsuit in court. Most of the time, insurance companies will try to settle accident claims outside of court. Lawsuits are lengthy and expensive. An insurance company knows it’s likely to pay less by settling outside of court.

After you file a claim, the insurance company might respond quickly. However, the first offer is nearly always a lowball amount. So, although the insurance company might be willing to settle fast, it’s not necessarily the best for you. You will probably need to enter a settlement negotiation with the insurance company to fight for what you deserve.

How the Insurance Company Decides to Offer a Settlement

In Georgia, the negligent party in an accident is responsible for the damages. Negligence is a legal term for carelessness, according to the Official Code of Georgia Annotated (OCGA) §51-1-2.

Most of the time, the at-fault party’s insurance company covers the damages. For example, the insurance company of the responsible driver in an accident pays for the accident costs like:

Medical treatment costs
Lost wages and lost earning capacity
Property damage
Pain and suffering

Slip and falls, truck accidents, and motorcycle accidents are also instances where insurance comes into play. So, if someone causes your injuries, you can probably file a claim with their insurance policy.

Fair Settlements Aren’t Easy

Insurance companies care most about their costs. So when an insurer gets an accident claim, they will look for ways to reduce what they pay. They’ll also do what they can to avoid a court case. This is why most insurers will try to settle before going to court.

Getting a fair settlement offer might be difficult. The first offer will likely be much lower than you request in your claim. You and the insurer will need to negotiate and hopefully come to a fair agreement.

How to Know When to Settle a Claim

An insurance company will start with a lowball claim. They know that many accident victims do not have experience with personal injury cases. The insurer hopes you’ll take the first offer, which means closing your case. Once you accept money, you won’t be able to fight for more. The goal for most injury victims is to:

Negotiate a fair settlement with the insurance company, and
Not have to go to court

How a Lawyer Can Help

How do you know what a fair settlement looks like? By knowing your total damages and understanding your full rights. A personal injury accident can examine all of your accident damages. Your lawyer will also:

Determine who is at fault for your accident, including any partial fault
Consider all future damages, such as ongoing medical care
Account for pain and suffering damages that don’t have a set dollar amount
Prepare for the possibility of trial, just in case you need to file a lawsuit
Keep in mind how soon you want to settle your case

It’s hard to know what you deserve without a lawyer. But, unfortunately, we find that most accident victims drastically underestimate their damages after an accident. This can lead to a too-low settlement, leaving victims to pay out-of-pocket for many costs.

Fighting for Full Compensation for Your Injuries

As stated above, insurance companies don’t like to deal with court cases. For that reason, an insurer is more likely to negotiate a claim.

Always Hire a Lawyer to Help You

You may wonder why hiring a lawyer is necessary if your case won’t go to court. Aside from the reasons listed above, one of the most important things about hiring a lawyer is balancing the terms of negotiation with the insurance company.

Insurance companies often have lots of legal resources and a strong team of experts and lawyers on their side. However, if you know little or nothing about personal injury law, an insurance company can easily bully you into accepting a settlement far below what your damages truly are.

This happens to many personal injury victims in Georgia and throughout the country. Don’t find yourself fighting an uphill battle alone. In many cases, just hiring a lawyer is more than enough to get the insurance company to settle for what your damages are actually worth.

For a free legal consultation, call

404-400-4000

The Statute of Limitations for Accident Claims

Whether you go to court or not, all claims that involve an accident and personal injury have a statute of limitations of two years under OCGA §9-3-33. If you let the statute of limitations expire, you no longer have the right to file a claim and pursue financial compensation. So don’t forfeit your ability to win a settlement by sitting on your claim.

You do yourself a disservice with inaction. The insurance company wants you to either take their lowball settlement or sit on your claim. The longer you wait to take action, the easier it is for an insurance company to fight against the claim you eventually file. Always get help from a lawyer and take the necessary steps to secure your settlement.

Talk to an Atlanta Personal Injury Lawyer Today

has been helping accident victims for over 20 years. We have grown to become one of Georgia’s largest law firms with a reputation as the “Strong Arm” against insurance companies.

We do not get paid unless we win your case. And every case is personal for us because we fight tirelessly for our clients. To learn more during a free consultation, call or contact us online.

Call or text

404-400-4000 or complete a Free Case Evaluation form

FAQs

Most Accident Claims Settle Out of Court? ›

Most car accident cases settle out of court through negotiations with the insurance company. Going to trial is costly and time-consuming for the parties involved and their insurance companies.

Keep Reading ›

Are most cases settled in court or out of court? ›

First, more than 90% of all lawsuits are settled out of court, most of them virtually on the courthouse steps after months or years of preparation and expense. Some of this expense is necessary, but, on the whole, huge quantities of time and money are spent preparing for events that don't occur.

Explore More ›

Why do most personal injury cases settle? ›

The vast majority of personal injury claims settle to save time and money, and to avoid the risks of trial. Nolo was born in 1971 as a publisher of self-help legal books. Guided by the motto “law for all,” our attorney authors and editors have been explaining the law to everyday people ever since.

Show Me More ›

What is the highest paid out lawsuit? ›

Tobacco Settlement at $206 Billion

The largest-ever class action settlement was agreed upon in 1998 by Philip Morris, RJ Reynolds, and two other tobacco companies. Paid out annually over 25 years, the settlement covered the medical costs for smoking-related injuries for individuals in 46 US states.

View Details ›

Why do lawyers prefer out of court settlements? ›

The main reason that most cases settle out of court is because the outcome is either guaranteed or predictable. However, unlike a trial, settling out of court means that the settlement is not up to a jury or judge to decide. Both parties can come to a mutual agreement without other parties being involved.

Explore More ›

Why do people settle instead of going to court? ›

Litigation can be long and expensive, and settlement helps save time and money. Risk mitigation. Parties may choose to settle to minimize the uncertainty of court proceedings. A settlement allows them greater control over the outcome and avoids the risks of a trial and unpredictable judgments.

Keep Reading ›

Why do most civil cases settle? ›

The high cost of litigation.

If a case goes to trial, there can be many other expenses, such as expert witnesses and court fees. In addition, the process can be time consuming, so litigants may have to miss work or other important obligations.

Get More Info ›

How does settlement negotiation work in an injury case? ›

An attorney may begin the settlement negotiation process by sending the insurance company a demand letter. This will provide the details of the requested settlement and the reason for the amount. It may end with a statement about going to court if their client does not receive satisfactory compensation for their claim.

Learn More Now ›

Why do big companies settle out of court? ›

Settling is often cost-effective

Even if an executive or representative of a business believes that the organization is in the right, the cost of business litigation is a major deterrent to full-fledged business lawsuits. The cost of settling, even if the business might win in court, is often lower than going to trial.

Find Out More ›

What is the formula for personal injury settlements? ›

The Damages Formula

The adjuster will multiply the medical special damages number by one and a half to three times if the injury is minor and up to five or more times if the injury is especially deliberating and long-term. After this number is calculated, any income lost as a result of the injury will be added.

See Details ›

How long does a whiplash claim take to pay out? ›

Most whiplash claims are settled within a 6 month period, however this is dependent upon a number of different factors including: Liability being accepted by the third party insurers. The medical prognosis and expected recovery time. The extent of the whiplash injury.

Find Out More ›

How long for injury claim payout? ›

The amount of time it takes to make a personal injury claim varies. It could be anything from a few months up to three years. It all depends on the complexity of your injuries and the speed at which the Personal Injuries Assessment Board (PIAB) deals with your case.

Read The Full Story ›

Why is my settlement check taking so long? ›

Factors such as the complexity of the case, negotiation processes, and administrative procedures can impact the timing of the settlement check. It's essential to note that while the general range is 3 to 6 weeks, the specific duration can be shorter or longer based on the unique details of your situation.

View Details ›

Are most criminal cases settled in or out of court? ›

The vast majority of cases resolve with a plea bargain prior to trial. It is rare that criminal case goes to trial.

Learn More ›

Are most lawsuits typically settled or dismissed before they go to trial? ›

The overwhelming majority of civil cases are resolved prior to trial – either through judicial order (for example, when the judge grants a dispositive motion filed by one of the parties) or through a settlement between the parties.

Read On ›

Why do most cases never go to court? ›

At least 95% of cases end up pleading because it's a certain outcome and, frankly, it's less expensive and time-consuming. Although there are exceptions, you typically know what's going to happen with a plea. In addition, a plea is not as much work as a trial. A trial is public, very stressful and time-consuming.

Find Out More ›

Why do judges favor settlements? ›

Settlements can be an efficient way to resolve disputes and can save time, money, and emotional distress for all parties involved. Judges often encourage parties to consider settling their disputes outside of court and may even facilitate settlement negotiations during pre-trial conferences or other court proceedings.

Read The Full Story ›