Roughly 95% of civil cases settle before trial. Trials are slow, expensive, and unpredictable for both sides, so insurance companies and defendants almost always prefer to negotiate. Here's what that negotiation looks like from your side.
How settlements happen
- Demand letter: your attorney sends a written demand laying out liability and damages.
- First offer: the insurer responds, typically with 25–40% of the demand.
- Counter-offers: back and forth, usually 3–5 rounds.
- Mediation (sometimes): a neutral third party helps both sides find a number.
- Settlement agreement and release: you sign, you get paid, the case ends forever.
How to tell if an offer is fair
- Does it cover 100% of past and projected medical bills?
- Does it replace all lost wages and reduced earning capacity?
- Is there a meaningful multiplier for pain and suffering (typically 1.5x–5x economic damages for moderate injuries)?
- Does it account for future treatment you'll need?
- Is it within or near the at-fault party's insurance limits?
When you should NOT settle
- You haven't reached Maximum Medical Improvement yet
- Liability is clear and the offer is far below policy limits
- The insurer is pressuring you to settle within days of the accident
- They're asking for a recorded statement before any offer
The trade-off of settling
You get a guaranteed amount now, instead of an uncertain (potentially larger or smaller) amount in 1–3 years after a trial. Once you sign the release, you can't re-open the case — even if you discover new injuries later. That's the single most important reason to wait until you've fully healed (or know the long-term picture) before accepting.