When to File a Car Accident Lawsuit
November 25, 2024
Most car accidents in Pennsylvania are resolved without the need for a car accident lawsuit, but not all of them. In some cases, filing a car accident lawsuit is necessary for the victims to get the justice they deserve. In every case, an experienced car accident attorney can be a valuable advocate for victims, from determining when to file a car accident lawsuit to advising when to negotiate with insurance companies for a settlement.
Have you been injured in an auto accident? You may be eligible for compensation under Pennsylvania law. Contact Wapner Newman at (215) 569-0900 to schedule a free consultation with experienced attorneys who care.
Claims vs. Lawsuits
Victims of auto accidents in Pennsylvania may seek compensation for their accidents by way of a lawsuit or a compensation claim, depending on the circumstances. A compensation claim is a claim typically made against an insurance policy. The claimant, who is the car accident victim, lists the compensation they are seeking and awaits a response from the insurance company.
In many compensation cases, the first line of compensation for a victim comes from the accident victim’s own no-fault insurance. Drivers may also choose full tort insurance as their form of auto coverage. Either way, the process involves filing a claim against someone’s insurance company for compensation.
Lawsuits differ from claims in that the law steps in to make the decisions in a lawsuit. While settlement negotiations see the parties making the decisions, lawsuits bring in the court as the decision maker. As you might imagine, lawsuits are generally far more drawn out than claims and can cost much more time and money. This is one reason why most claims settle out of court.
Examples of When to File a Car Accident Lawsuit
Despite the added time and expense that lawsuits can come with, there are certain cases where filing a car accident lawsuit is the best option. The following circumstances typically lead to the filing of lawsuits.
Failed Settlement Negotiations
Much of car accident compensation is paid out after settlement negotiations. These negotiations are meant to take the place of lawsuits. However, they are not always successful. Parties do not always come to an agreement satisfactory to both. It is when negotiations break down that accident victims are often encouraged to file a lawsuit to compel proper payment. Frequently, the main issue preventing a settlement from being reached is an unreasonable insurance company unwilling to pay what they owe.
Complicated Liability Issues
Cases in which it is clear who the liable party is are often easily settled without the need for a lawsuit. However, when liability issues become complicated, insurance companies are often less likely to pay a fair compensation value. If there is any doubt as to whether a policyholder is at fault, an insurance company will often dispute paying full compensation. As such, they may need to be compelled by way of a lawsuit to pay what they owe.
Approaching a Statute of Limitations Deadline
Statutes of limitations are deadlines that dictate how much time one has to take legal action on a matter. In personal injury cases involving autos, victims have a two-year statute of limitations to initiate legal action for compensation. Filing a lawsuit can stop the clock, but settlement negotiations before the filing of a lawsuit do not.
This effectively means that during negotiations with insurance companies, the clock is still ticking. If the clock runs out during insurance negotiations, the victim can lose their right to file a lawsuit against the at-fault driver.
Bad-Faith Insurance Claims Handling
Insurance companies may not necessarily be on your side, but they are still required to deal with clients in good faith. They cannot work to sabotage the process in any way and must make good-faith efforts to settle their claims. Unfortunately for victims, some insurance companies employ tactics to stymie the claims process, which ultimately allows them to pay less.
Examples of tactics these companies engage in include:
- Ghosting claimants
- Returning calls after unreasonable delays
- Failing to communicate comprehensive information
- Denying or reducing claims unreasonably
- Failing to investigate claims.
When insurance companies engage in these types of behaviors, they hope that claimants will tire and take less money or simply walk away frustrated. What they do not hope for is a savvy claimant hiring an attorney to hold them accountable for bad-faith insurance dealings.
For effective representation in car accident lawsuits and claims, Philadelphians trust Wapner Newman.
Outstanding Damages
What happens when an accident victim receives their insurance payout, but there are losses unaccounted for? One of the potential next steps is to file a lawsuit directly against the at-fault driver. Although their insurance company may have paid out damages already, the driver is still responsible for any compensation not covered by the insurance payment.
Whether filing a lawsuit directly against a driver bears fruit depends on many factors. Most importantly, there is the factor of the driver’s financial situation. If a driver is not financially stable or has low resources, the likelihood of recouping damages from them is low. On the other hand, if the defendant has assets, financial stability, and a good income, a lawsuit may be viable.
Ultimately, the amount of outstanding damages left over after insurance will dictate much of whether the victim recovers them. If a small amount of damages remains after insurance compensation, the likelihood of recovering these damages is higher than if the damages were substantial.
Lawsuit Damages
If you are able to file a lawsuit for a car accident, it’s important to be aware of the potential damages you will be entitled to pursue. Unlike cases handled by no-fault insurance, lawsuit cases may seek full damages, including damages for both economic and non-economic losses.
Common economic losses include:
- Medical bills
- Lost income
- Vehicle damage
- Associated expenses.
Non-economic damages, on the other hand, cover intangible losses. Common non-economic losses include:
- Pain and suffering
- Loss of enjoyment of life
- Mental anguish and emotional distress.
Remember that you can also seek full damages in an insurance claim against the at-fault driver’s insurance company.
Early Action
Regardless of whether you file a lawsuit or settle your claim by way of insurance, it is important that you act quickly after your accident. Time can devastate a strong case, causing the victim to receive less compensation or none at all. For example, some of the evidence you might need for a claim or lawsuit may simply be unavailable by the time you act, including traffic cam footage and witness statements.
Acting early means meeting with an experienced car accident attorney as soon as you can after receiving treatment for your injuries. Once an attorney gets involved, they can immediately act to preserve evidence and begin building the strongest case possible.
Get the Formidable Representation You Deserve
No one wants to deal with the aftermath of a car accident. But when you choose a seasoned attorney to advocate for you, you can focus on recovering while your attorney fights for the compensation you deserve.
If you were injured in a Pennsylvania car accident, don’t hesitate to reach out to the auto accident attorneys at Wapner Newman. Our team can help you recover every penny you are owed, whether through a claim or lawsuit. Call (215) 569-0900 today to schedule a free consultation.