Can I Settle My Pennsylvania Car Accident Case without Going to Court?

In general, victims have two options after filing a car accident lawsuit. They can either go to trial or settle out of court. If you require compensation following a car crash in Pennsylvania, it’s important to learn the best path to take for your case.

Settling a car accident case out of court is only possible when all involved parties agree to settle. When cases are resolved without a trial, victims cannot then go seek additional compensation. The settlement victims agree to will be what they receive. Although victims might be under the impression that settling out of court means they will recover compensation sooner, that is not necessarily true. Furthermore, going to trial can present the opportunity for recovery of more damages, including compensation for the pain and suffering experienced by a victim because of a car accident in Pennsylvania.

Victims can call The Reiff Law Firm’s Philadelphia, PA car accident lawyers at (215) 709-6940 for a free case assessment today.

Can You Settle Your Car Accident Case without Going to Court in Pennsylvania?

Victims often need to recover compensation quickly when faced with the damages caused by a motor vehicle accident in Pennsylvania. While a settlement can sometimes offer a faster recovery, it may also require concessions on a victim’s behalf.

Will Both Sides Settle?

Whether or not you can settle a car accident case without going to court depends on a few things in Pennsylvania. The first is if a defendant also wants to settle. While settling is often preferable for defendants, they might want to go to court, depending on the available evidence against them. Some defendants want to take their chances in court in the hopes that they will not be ordered to pay any damages to victims.

Trial Might Pay More

This goes both ways. If a defendant is urging you to settle your car accident case out of court, that might be an indication that they believe they will lose the case at trial. While many motor vehicle accident claims settle without going to court, our Pennsylvania personal injury lawyers typically advise victims to take their cases before judges or juries, as doing so can often result in greater compensatory damages for victims.

When Settlements Occur

Settlements can happen at any time during the litigation process. Victims can also leave settlement negotiations and proceed with a trial whenever they choose, provided they have not already signed a settlement agreement. There is no time limit on how long settlements might take in Pennsylvania.

Do I Have to File a Lawsuit?

No, but it is often a good idea to do so.

How Cases Work Without Suing

You can settle a case with no lawsuit whatsoever, but then the insurance company has very little pressure to settle the case. Instead, we would just be waiting on them to decide to pay of their own accord.

Trial Pressures Defendants

When you settle your case – even if you do not ultimately go to trial – it puts the potential of a trial on the insurance company. This aggressive strategy helps them take the claim more seriously and understand there is a deadline to pay up or else have to put on a trial.

Is Using Insurance an “Out of Court Settlement”?

Before you even get to court, you may file insurance claims. These are potentially going to function as a “settlement,” but not when you make claims with your own insurance. It is important to understand what you are doing and work with a lawyer to avoid ending your case without realizing it.

Whose Insurance Covers the Accident?

In most cases, your own insurance and the defendant’s insurance will play a part in the case. Pennsylvania law requires drivers to have at least $5,000 of medical coverage for their own injuries, which they can draw from first before even needing to go after the defendant’s insurance.

Full Tort vs. Limited Tort Insurance

Limited tort insurance is the standard policy in Pennsylvania. Under this, you get coverage from your own insurance for your injuries, and you can only file a lawsuit against the defendant in the first place if your injuries meet certain criteria, such as the serious injury threshold.

If you have a full tort policy, you can always sue. Your insurance still has at least $5,000 of medical coverage for your own injuries.

Optional Coverages

Many drivers elect for enhanced first-party benefits. These coverages can pay for things like medical bills and lost earnings, paying even more for a very serious crash. To tap into these, you usually pay a deductible.

You may also have UM/UIM coverage – uninsured motorist and underinsured motorist coverage. These can pay when the other driver has no insurance or has a low-dollar policy that does not cover your damages. These may even stack multiple policies from your household.

Is Using My Insurance a “Settlement”?

Using your own first-party benefits from your insurance policy does not function as a settlement. That means you can get paid from your insurance policy before going to court, then potentially still file a claim or a lawsuit against the at-fault driver.

However, be careful: you might have the same insurance company as the defendant, and it might not be clear whether you’re talking to them about a claim through your policy or the defendant’s policy. Never accept money or sign anything from insurance without talking to your lawyer about it first.

What Happens When You Settle Your Pennsylvania Car Accident Case without Going to Court in Pennsylvania?

When victims choose to settle their car accident claims out of court, they will not be able to recover additional compensation if they then realize that their settlements do not adequately cover the cost of their injuries in Pennsylvania.

Settlement Ends Case

If a case is settled out of court, that is the end of the matter. The compensation amount that is agreed upon will be paid to the victim, whether in one large payment or over time.

No Further Recovery

Settlements do not always fully compensate victims for damages incurred because of an auto accident. Medical treatment will likely continue past a settlement agreement and might become more expensive than what a victim anticipated. When settlements are accepted, victims no longer have the option of going to court.

Considerations

Many defendants push plaintiffs to settle so that they will not have to pay substantial compensation to victims. They know that when a settlement is agreed upon, that will be that, and a victim cannot then go to trial to seek greater compensation. Because of this, it is important to evaluate settlement offers against your actual damages carefully. If a settlement is not good, do not feel pressure to accept it.

You can either continue negotiating with the defendant and leverage the evidence you have of their fault or go to trial. Victims can choose to leave settlement negotiations at any time during the process.

Statute of Limitations Not at Issue if You File Early

Because the claim has already been filed, you do not have to worry about the statute of limitations. If you are concerned that a settlement will not adequately compensate you, it may be best to take your case to court in Pennsylvania.

Should You Settle Your Pennsylvania Car Accident Case without Going to Court?

Settling versus going to court can be a difficult decision that victims have to make. The fact that greater compensation can be available in trials may be enough to convince victims to take their car accident claims to court in Pennsylvania.

Speed of Resolution

Often, the prospect of settling a car accident case appeals to victims who need compensation quickly. In reality, settlement negotiations can take a very long time. In some cases, it might be years before a dispute is settled out of court. Settlements can take just as long as trials, sometimes longer.

Cost of Settling

Settling a case out of court involves negotiations and concessions from both parties. Because of this, certain damages will likely not be available in a settlement. For example, defendants rarely offer non-economic damages that will compensate victims for their pain and suffering following a car crash. Judges and juries can award such damages to victims upon reviewing proof of pain and suffering.

No Punitive Damages

Punitive damages are also unavailable in settlements for car accident claims. If you take your case to court and prove that the defendant acted with gross negligence when causing your injuries, the judge or jury in your case may award you punitive damages to punish the defendant for their actions.

Full Recovery May Only Come in Court

Your case is only about your recovery. In order to ensure your recovery, it is important that you understand the differences between settling and going to trial and which path has the capacity to result in greater compensation for you.

When Is an Out of Court Settlement Official?

Negotiations can take place well before you file your case in court or go all the way through the day of trial for a “courthouse steps” settlement. Knowing when a settlement counts as “out of court” and when it is official are important.

When is a Settlement “Out of Court”?

Technically, all settlements are made “out of court,” since they are private agreements between the parties and not in the physical courtroom with the judge. This distinction doesn’t actually affect your case.

When is a Settlement Agreement Official?

Settlements become official and effective once both parties sign them. Usually, at some point, one side will prepare an offer and send it to the other side for approval.

If the settlement is already signed, then signing it makes the settlement official. If you made edits, you can send them back for review and a new signature. If you send it signed, then all they have to do is sign it, or else the cycle of edits repeats.

Can You Settle Without Signing?

This is where cases can be tricky: some settlements occur without any signing. If you accept money, and it appears to be payment for your damages, then acceptance of the money can function as a settlement.

At this point, the issue would be deemed settled because you accepted payment for the issue. Even without explicit terms and a signature, your case could be over.

FAQs for Out of Court Settlements in Pennsylvania Car Accidents

Can I Settle Out of Court After Filing?

Sure! Most cases ultimately settle, even if they have already been filed as a lawsuit. We generally file cases as a lawsuit early on in negotiations to enhance the pressure on the defense, but you do not actually have to go to trial just because you filed in court.

Do I Have to Settle Out of Court?

Technically, there isn’t really a way to settle “in court”; judges are not responsible for signing off on most settlements, and they happen outside of the judge’s authority. Judges often push parties toward negotiations and may require an attempt to settle before scheduling your case for trial, but they are not in charge of settlements in an official way.

Instead, all settlements are between two private parties. Whether they happen in the physical courthouse or somewhere else, they are technically “out of court.”

Why Do Cases Settle Out of Court?

Settling ends the case without the need for trial. Trials are expensive and take time, so settling skips the need for that. Even when lawyers are in the middle of trial preparations, it is still often cheaper for everyone involved to settle instead of going to trial.

Why Might a Case Not Settle?

Cases often go to trial and do not settle in these situations:

• The insurance company doesn’t believe their driver was at fault and refuses to pay for it.
• There are problems in the case that the insurance company doesn’t want to expose, and they are hoping you will drop the case or give up before they come out in discovery (evidence sharing stage).
• The case is too expensive, and they don’t want to pay your damages.
• The insurance lawyers are inexperienced and do not know that they are bound to lose on the facts at hand.
• The insurance adjusters or lawyers think that they do not have authorization from their supervisors to settle.

Call Our Pennsylvania Lawyers About Your Car Accident Case

For a free case review from The Reiff Law Firm, call our Norristown, PA car accident lawyers now at (215) 709-6940.