If you were recently injured in an accident that was not your fault, and you have decided to file a claim against the at-fault party, you may feel confident knowing that the vast majority of personal injury cases settle. Continue reading to learn the top four reasons why and the best way to get started on your personal injury claim.
Insurance Company Settlements
When insurance companies are involved in an accident claim, and they usually are, settlements are offered 85% of the time, depending on your case. This is a fact that has to do with the reason why most personal injury cases are settled. Insurance companies typically offer settlements because they have the financial means to pay out remuneration; in fact, they generally expect to pay out a certain amount of compensation for liability claims. Furthermore, they are “risk-averse,” meaning they’ll do what it takes to avoid losing control over costs in the case that they have to go to trial for a claim.
Why Most Cases Come to a Settlement
Here are the top 4 reasons why virtually all personal injury cases settle:
1. Risk Aversion
As mentioned, most insurance companies choose to offer a settlement in an attempt to control financial risk. They would prefer to offer and control the amount of that offer, rather than risk the case going to trial where a jury decides how much a plaintiff should be offered for their pain and suffering.
2. Protection of Reputation
Another common reason why insurance companies choose to offer settlement is for the sake of their reputation. This is especially important in this day and age, with all of the relevant social media platforms available to the public. Larger companies are particularly interested in protecting their reputation since they have a very public profile, and any damage to their reputation can jeopardize company earnings. Quietly offering a settlement out of court allows a company to negotiate terms that work for both parties, including a confidentiality clause.
3. Avoid a Prolonged Trial
Plaintiffs often choose to settle to avoid a protracted trial. Victims cannot receive financial relief until a settlement is agreed upon, so if a trial continues for months or years at a time, victims can suffer financially. It is common for plaintiffs to need the money right away to pay for their losses and damages, including hospital bills, medical expenses, lost wages, physical therapy, and more.
4. Guarantee Triumph
Another common reason why plaintiffs choose to accept a settlement offer is for the simple purpose of winning and recognizing what they went through. Accepting an offer is a guaranteed method of getting awarded compensation.
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