Reasons Why You Should Settle a Car Accident Claim

car accident

“It was the first car accident I had ever been in. It shakes you up a little bit.” – Matt Hasselbeck

Have you recently been in an auto accident? If so, the quotation mentioned above by Matt Hasselbeck is relevant. It is actually an understatement. It doesn’t matter how many traffic collisions you have been in, and it is reasonable to be shaken up or to battle with varying levels of post-accident trauma.

What To Do After a Car Accident 

For the purposes of this article, let’s assume that you did not cause the accident. And, you followed all the post-accident procedures like remaining at the scene of the accident until the traffic police arrived, you took photos of the accident scene, collected witness statements, and you exchanged contact details with all of the other people involved in the accident.

You have also sought medical treatment for shock and have been diagnosed with a mild case of PTSD and you’ve been booked off from work for three to six months, depending on how you progress and come to terms with the accident’s aftermath.

The fundamental reason why it is preferable to settle the car accident claim rather than proceed to litigation:

 The question that begs is how do you pay for the medical bills, vehicle repair bills, and fund yourself without working for the foreseeable future?

The salient answer to this question is made up of the following points:

  • Motor vehicle insurance is designed to cover the repair bills in the event of a motor vehicle accident. However, your insurance company might not cover the total cost of the repair. You might have to pay the excess.
  • Secondly, you can file a personal injury claim against the driver of the car who was responsible for the accident.

Should You Settle After a Car Accident?

 At this juncture it’s vital to speak with a legal expert about the validity of a car accident settlement rather than filing a personal injury claim in the civil court and taking the matter to trial.


By way of answering this question, let’s consider the following points:

Statistics quoted by the U.S. Department of Justice show that 95% of all personal injury cases are settled pretrial. Only 5% of all cases go to trial. And, another very important statistic that is worth considering is that 90% of all cases that go to trial lose.

Additionally, litigation is extremely costly. Estimates suggest that the trial costs could run up to $100,000. And, it can take years for the process to conclude. The cost alone is the primary reason why insurance adjusters prefer to settle a case than take it to trial.

The financial settlement might be less than it would be if your litigation efforts were successful. However, based on the statistics quoted above, the risk of losing your case is too high. Consequently, it is better to accept a reasonable settlement than to be saddled with expensive litigation costs and no financial remuneration.

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