If you were recently injured in an accident that was not your fault and have decided to file a claim against the at-fault party, you can feel secure knowing that the vast majority of personal injury cases are resolved. Read on for the top four reasons and the best way to get started with your personal injury claim.
Insurance company liquidations
When insurance companies are involved in an accident claim, and they usually are, settlements are almost always offered. The reason this is a fact has to do with why most personal injury cases are settled. Insurance companies often offer settlements because they have the financial means to pay the compensation; in fact, they generally expect to pay a certain amount of compensation for liability claims. In addition, they are “risk averse”, which means that they will do whatever it takes to avoid losing control over costs should they have to go to trial over a claim.
Why most cases settle
Here are the top 4 reasons that virtually all personal injury cases get settled:
1. Risk aversion
As mentioned, most insurance companies choose to offer settlement in an attempt to control financial risk. They would rather make an offer and control the amount of that offer, rather than risk the case going to trial, where a jury decides how much the plaintiff should be offered for their pain and suffering.
2. Protection of reputation
Another common reason that insurance companies choose to offer a settlement is for the sake of their reputation. This is especially important today with all the relevant social media platforms available to the public. Larger companies are particularly interested in protecting their reputation, as they have a very public profile and any damage to their reputation can jeopardize the company’s profits. Quietly offering an out-of-court settlement gives the company the opportunity to negotiate terms that work for both parties, possibly including a confidentiality clause.
3. Avoid a lengthy trial
Plaintiffs often choose to settle in order to avoid a lengthy trial. Victims cannot receive financial assistance until an agreement is reached; So if a trial continues for months or years at a time, victims may suffer financially. It’s common for plaintiffs to need the money right away to pay for their losses and damages, including hospital bills, medical bills, lost wages, physical therapy, and more.
4. Guarantee of success
Another common reason plaintiffs choose to accept a settlement offer is for the simple purpose of winning and an acknowledgment of what they went through. Accepting an offer is a guaranteed method of obtaining compensation.
