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Why Are Out-Of-Court Settlements Common In Car Accident Cases?


After being injured in a Florida car accident, especially one caused by someone else’s negligence, you need to consider all your options to recover the full compensation. Generally, after a car accident occurs due to another person’s negligence, involved parties have two options;

  1. settling the case out-of-court, or
  2. settling the case in court through a trial.

According to statistics, approximately 95% of personal injury cases settle in out-of-court agreements. This means that about one in twenty personal injury cases is resolved in court. Also, since quite a number of personal injury cases arise from car accidents, these numbers also hold true for car accident cases. So, why do many car accident cases settle in out-of-court agreements? In this article, we will explain why out-of-court settlements are common in car accident cases.

There are many reasons why out-of-court settlements are common in car accident cases. Below are three of these reasons.

Insurance Companies Prefer Settling Car Accident Cases Out-of-Court

Defendants rarely pay out compensation to plaintiffs from their own pockets. Often, a defendant’s insurance company pays out compensation to a plaintiff. It is usually in an insurance company’s best interest to settle a car accident case outside court for many reasons (one of which we’ll discuss in the section after this one). However, remember that just because it is in an insurance company’s best interest to settle a car accident case outside court doesn’t mean it is in your best interest to do so too.

Avoiding the Unpredictable Nature of Trials

Many people opt to settle their car accident cases out-of-court to avoid the unpredictability that comes with court trials. Plaintiffs and defendants often look to settle car accident cases out-of-court to avoid unexpected results and control their risks. Even though settling a claim outside court doesn’t mean a person will get what they want, settlement offers people a measure of certainty. Plaintiffs usually opt to settle their cases out-of- court to avoid getting nothing, and defendants normally choose to settle cases out-of-court to avoid being asked by a judge to pay a significantly huge amount of money to a plaintiff.

Saving Money

Indeed, litigation can be expensive because trials usually require evidence, witnesses, experts, among others, to help communicate information to the court. Defendants and plaintiffs often choose not to go to trial to reduce costs.

It is crucial that you speak to a skilled car accident attorney before choosing to settle your case outside court. Just because many people do it doesn’t mean you should too. Depending on your case, you might find it best to take your case to court instead of settling it outside court. Remember, often, insurance companies get away with giving plaintiffs low offers.

Contact Us for Legal Help

Our Fort Lauderdale personal injury attorneys at The Pendas Law Firm can assess your car accident case and figure out which legal option is best suited for your case. We can help you negotiate a fair compensation if we determine that settling out-of-court is best for you. Also, if your case requires us to go to trial, we will not hesitate to do so. The good news is that our clients never have to worry about costs since our attorneys work on a contingency basis. Contact us today to schedule a free consultation.

The Pendas Law Firm also represents clients in the West Palm Beach, Ocala, Jacksonville, Fort Myers, Miami, Daytona Beach, Orlando, Bradenton, and Tampa areas.

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