Legally reviewed by:
Daniel Smith February 21, 2025
When faced with a personal injury case, deciding whether to settle or go to trial is a very significant decision – probably the most significant you’ll have to make. Both options come with their own set of advantages, challenges, and risks.
Settling may provide quicker resolution and guaranteed compensation, while a trial could lead to a higher award but with added stress and uncertainty. Choosing the right path depends on your unique circumstances, the strength of your case, and your personal goals.
Below, we explore the key factors to consider when weighing these options and provide an in-depth look at both the settlement and trial processes.
Things to Know About Settlement vs. Trial
Before deciding whether to go the settlement or trial route, here are a few prominent things to note about settlement and trials in relation to each other.
Settlements Are More Common Than Trials
The vast majority of personal injury cases are resolved through settlements. As a matter of fact, the Bureau of Justice reports that in 2005, only 3.4% of automobile accident cases ended after receiving a verdict, and the others were either settled or dismissed, and the proportions today are likely similar.
Settling allows both parties to avoid the unpredictability of a courtroom verdict. This route often saves time, money, and emotional energy for everyone involved.
Settlements are typically handled through negotiation between the parties or their attorneys, often involving the defendant’s insurance company. This route prioritizes efficiency, ensuring the injured party receives compensation without the lengthy delays of court proceedings.
Trials Can Yield Higher Compensation
While settlements are more predictable, trials may result in significantly higher compensation if the jury sides with the plaintiff. However, there’s no guarantee of success, and the risk of walking away with nothing makes this route a gamble if you do not have a very strong case.
In many cases, juries may award damages for pain and suffering, emotional distress, or punitive damages—amounts that may not be included in settlement offers. Yet, trials involve higher stakes and require thorough preparation to make a compelling case.
Cost Differences Between Settlement and Trial
Settlements generally involve fewer legal fees since they require less preparation and courtroom time. Trials, on the other hand, can be expensive due to court costs, expert witness fees, and prolonged legal proceedings.
Additionally, settling eliminates the need for extensive litigation, which can quickly add up in expenses. While trials may offer greater rewards, it’s important to weigh the potential gains against the costs.
The Emotional Impact of Each Option
Settlements tend to be less stressful because they avoid the adversarial nature of a trial. In contrast, going to court often involves public testimony and cross-examination, which can be emotionally taxing for the involved parties.
Trials can also prolong the closure that many plaintiffs seek, keeping the stress of the incident alive for years. Settling provides an opportunity to move forward more quickly.
The Time Factor
Settlement negotiations can typically be concluded within weeks or months, depending on the case’s complexity. Trials, however, may take years to resolve due to court backlogs, pre-trial procedures, and appeals. Bureau of Justice statistics indicate that automobile accident cases that reach the verdict stage take about 20.1 months (median) in court processing time.
For individuals who need immediate financial relief for medical expenses or lost wages, settling may be the most practical option. Trials, while potentially rewarding, demand patience and resilience.
The Settlement Process
Settling a personal injury case involves negotiation between the injured party (plaintiff) and the at-fault party or their insurance company. Here’s a breakdown of the steps:
1. Claim Filing
After the plaintiff understands the full extent of their damages, they contact the at-fault party’s insurer to make a claim.
Different insurance companies have different claiming processes; in some instances, the plaintiff may have to wait for a physical form to be sent before filling it out, and in other instances the claim can be made online. As part of this stage, the plaintiff will have to attach evidence of their damages to the claim.
2. Investigations
Naturally, to prevent insurance fraud, after filing your claim, the insurance company will investigate it through adjusters.
These adjusters will likely request to physically examine the damages you sustained, and will go through other sources that document the accident. After their investigations, they will make a recommendation to the insurer on whether they should approve, devalue, or deny your claim.
3. Negotiations Begin
Once the insurer makes an offer, both parties begin to negotiate a potential settlement. Insurers often start with a low offer, and the plaintiff’s attorney works to counter and reach a fair agreement. Negotiations may involve back-and-forth discussions over several weeks.
4. Mediation or Arbitration
If negotiations stall, mediation or arbitration may be used. These are structured forms of alternative dispute resolution where a neutral third party helps facilitate a compromise. Mediation is particularly effective in resolving disputes amicably without further legal action.
5. Settlement Agreement
Once both parties agree on a compensation amount, they sign a settlement agreement. This legally binding document states that the plaintiff will not pursue further legal action regarding the accident.
6. Payment Distribution
After the settlement is finalized, the defendant or their insurer provides payment. The plaintiff’s attorney typically deducts their fees and any other legal expenses before distributing the remainder to the plaintiff.
It is also important to point out that when dealing with certain at-fault parties like uninsured drivers, government agencies, and some businesses, you may have to directly negotiate with the defendant or a representative of the defendant, not their insurer.
Advantages of Settling
- Guaranteed compensation.
- Faster resolution.
- Lower legal costs.
- Settlements are usually private.
Disadvantages of Settling
- Compensation may be less than what could be awarded at trial.
- The plaintiff waives the right to pursue further legal action for additional damages.
The Trial Route
Opting for a trial involves presenting your case before a judge and/or a jury, who then decide on liability and compensation. Below is an overview of the trial process:
1. Filing a Lawsuit
If settlement negotiations fail or if you want to directly go the lawsuit route, the plaintiff files a lawsuit against the defendant. This initiates the court process and sets the stage for trial proceedings.
2. Discovery Phase
During discovery, both sides exchange evidence, take depositions, and build their cases. This phase is critical for gathering the information needed to present a strong argument in court. Depositions, medical records, and witness statements are often key components.
3. Pre-Trial Motions and Hearings
Both parties may file motions to dismiss parts of the case or resolve specific issues before the trial begins. Pre-trial hearings allow the judge to set rules and ensure the trial proceeds smoothly.
4. Trial Proceedings
During the trial, both sides present evidence, question witnesses, and make arguments to the jury.
The plaintiff’s attorney works to prove liability and damages, while the defense attorney aims to refute these claims. This stage can involve expert testimonies, visual evidence, and detailed presentations.
5. Verdict and Appeals
After deliberation, the jury issues a verdict on liability and the amount of compensation. If the losing party disagrees with the outcome, they may file an appeal, extending the case’s timeline.
Advantages of Going to Trial
- Potential for higher compensation.
- Public vindication of your case.
- Opportunity to hold the defendant accountable.
Disadvantages of Going to Trial
- Uncertainty and risk of losing.
- Significant time commitment.
- Higher legal costs.
Things to Remember
With both routes, there are certain deadlines or requirements to always keep in mind. The first is the statute of limitations which could vary in different states and for different trials.
The statute of limitations refers to the amount of time you have to institute a lawsuit against a plaintiff for a personal injury case. And although, it directly guides trials, settlement attempts made after the statute of limitations for that personal injury has elapsed may not be taken seriously since you will have no legal recourse.
In Delaware, Del. Code tit. 10, § 8119 provides that personal injury actions must be brought within two years from the date the injuries were sustained but when the action is based on a contract, that may be extended to three years (§ 8127).
However, in Hawaii, Haw. Rev. Stat. 431:10C-315(b) provides that auto accident suits may be brought within two years from the date of the accident or two years after the date of the last motor vehicle insurance payment.
There are also legal requirements to ensure the proper reporting of personal injury. All states, for instance, require that any auto accidents that have caused death or injuries, no matter how minor, must be immediately reported to law enforcement. You will likely also be required to report these accidents to the DMV within a specified number of days.
How Can The Accident Helpers Help?
Deciding what route to take after personal injury should only be done after consulting an experienced lawyer who can fully advise you after taking your unique circumstances into consideration. Ensuring you get compensated through either route will equally require the assistance of a lawyer.
But how do you find an experienced lawyer you can trust? That is where we, at The Accident Helper, come in. We maintain a network of the best personal injury lawyers across the country and will connect you to one in your city at no cost.
All you have to do is contact us, give us the details of your accident, and we will immediately provide you with options for lawyer you can trust. Remember, our services won’t cost you a dime, so contact us today!
