According to statistics, about 95% of car accidents are settled out of court in the United States. In many cases, negotiation with insurance companies and a little back and forth can result in a fair payout. However, there are times when taking the case to court is the smartest move.
Like any litigation procedure, the court process for minor car accidents requires having an experienced attorney by your side since the outcome is unpredictable. Keep reading to discover instances where litigation is the best course of action for car accident claims.
When the Insurance Company Refuses a Fair Settlement
Sometimes, the insurance company does not offer enough to cover your losses. They may downplay how serious your injuries are or question whether or not you need treatment. If their offer does not reflect your medical bills, lost income, or pain and suffering, you may have no choice but to take legal action.
Filing a lawsuit can put pressure on them to reconsider and offer a better deal. If you proceed to trial, then it’s up to the jury or judge to decide what is fair.
When There Is a Dispute Over Who’s At-Fault
Not all car accidents are black and white. Sometimes, the other driver denies responsibility. If the insurance company believes their client is not to blame or tries to blame you instead, negotiating a fair settlement becomes difficult.
In these situations, litigation gives you an opportunity to present your evidence, such as accident reports, witness testimony, or traffic footage. A court can then make the final decision based on these facts.
In Case of Serious or Permanent Injuries
If you or a loved one has suffered serious or life-threatening injuries, the compensation should reflect the long-term impact and care needed. This includes:
- Future surgeries
- Physical therapy
- Medical equipment
- Reduced or loss of earning capacity
Insurance companies often fight hard to reduce payouts in such high-stakes claims. Going to court may be the only way to secure what you will need for the rest of your life.
When Multiple Parties Are Involved
Some accidents are more complicated than others. For example, if several cars were involved or if a commercial truck, government vehicle, or road contractor played a role. In such cases, figuring out who is responsible can be complicated and messy.
Insurers may try to pin the blame on another person, making the process unnecessarily long. Filing a lawsuit allows the court to sort out who should pay what rather than relying on private negotiations that could possibly lead nowhere.
When an Insurance Company Acts in Bad Faith
Sometimes, insurance companies do not just offer low settlements; they act unfairly on purpose. This is called “bad faith.” This can be in the form of:
- Ignoring your claim
- Delaying payment without a valid reason
- Denying a valid claim without an explanation
In these situations, litigation becomes more than just getting your claim paid. It is about holding the company accountable for its misconduct. Courts can award extra compensation in bad faith cases, making the case worth the effort.
When There Are Significant Non-Economic Damages
In a car accident, the biggest impact is not just the medical bills or lost income but the emotional and physical toll. These are called non-economic damages that can include pain and suffering, emotional distress, loss of enjoyment of life, and so much more.
Insurance companies often try to minimize or simply ignore these damages because they are harder to calculate and prove. Litigation may be necessary to communicate the extent of your suffering and secure proper compensation.
Conclusion
While most car accident claims are settled out of court, it is clear that there are some instances when litigation is the better option. Consulting an experienced attorney can help you determine whether you should settle or fight.