According to AAA, the average cost of an injury crash in the United States in 2009 was more than $125,000, while the average cost of a fatal accident was closer to $6 million. Add to this the devastating effect on people’s lives, and it is no wonder that victims of car crashes consider seeking compensation through legal action.
However, not every accident warrants a lawsuit, and some may be settled through payments by insurance companies. Making a decision on whether or not to sue is not always easy. Here are some guidelines as to when a car accident calls for legal action:
What About Insurance?
If your case is not too complicated and injuries and damages are not severe, insurance may cover your losses. However not everyone has insurance, and even if both you and the other party are insured, this may not be your best option.
Insurance companies are paid to represent the interests of their policy holder. The at-fault driver’s insurance company will try to low-ball you and your insurance company in order to save as much money as possible. They will try to get away with whatever they can, with tactics such as trying to shift responsibility to you, trying to get you to accept the lowest settlement possible, and dragging out negotiations in the hope that you will wear out and give up fighting.
Even your own insurance company is out to make money and act in a manner that is in its best interests, not yours. Your company will advocate for you; but since it wants to keep costs down and limit overhead, it actually has a conflict of interest and may try to settle early in order to save money.
To protect your rights and maximize the compensation you receive, it pays for you to speak to an experienced auto crash attorney before you talk to an insurance company. Attorneys often offer a free consultation and represent clients on a contingency basis, taking a percentage of the verdict won, so they will not be paid until you are paid. They have the experience to know what your case may be worth and help ensure you get the best settlement possible, whether or not you decide to sue.
Should I Take Legal Action?
If another party’s negligence or responsibility was involved in the accident, you should be entitled to receive fair financial compensation to cover:
- your economic losses, such as medical expenses, lost wages, and property loss
- non-economic damages such as pain, suffering, and loss of life’s pleasures
- punitive damages if the other driver did something very unreasonable.
Insurance policies often will pay compensation only for economic damages, so if your non-economic damages are large, the other party was extremely negligent, or if the other side is not negotiating or making a fair offer, a lawsuit might be your best option.
In determining whether or not to bring a lawsuit, your lawyer’s opinion matters most. Experienced attorneys have information such as prior settlement and jury verdict amounts in similar cases that help them value a case accurately. If your lawyer believes that your case is worth significantly more than what the insurance company is offering and it is unlikely that the company will increase its offer, a lawsuit may be the way to go.
For example, if your attorney believes the value of your accident is in the range of $50,000-$70,000 and the insurer’s best offer is $45,000, it probably doesn’t pay to sue. This is because, even if the suit settles for $55,000, court costs and fees will eat up the difference. If the pre-suit offer is way lower, say $30,000, it is probably worth going to court, even though it will take longer to get your settlement.
When considering a lawsuit, remember that the statute of limitations on car accident cases is usually one or two years and that you will need time to gather facts and evidence and build a case. So if you think there is even a chance that you may want to bring a lawsuit, make sure you consult with an experienced lawyer as soon as possible so you can get the case filed before the statute runs out and you may lose your right to sue forever.
