Insurance companies often offer settlements that don’t cover everything after an accident. Medical bills stack up, time off work stretches longer than expected, and life feels flipped upside down. You might wonder if the check they’re offering really matches what you’ve lost. Knowing when to file a lawsuit for higher compensation in personal injury cases helps you decide whether to accept a settlement or push for more.
This article covers when to say no to a lowball offer, how to know if your case deserves more, and what to expect from taking legal action. If you’ve been hurt and feel like the insurance company isn’t playing fair, a Texas personal injury attorney near you can offer a free consultation to review your options.
Understanding Personal Injury Compensation Options
After an injury, you have two main paths to get compensated: accepting a settlement or filing a lawsuit. Both approaches can result in payment, but the process, timeline, and outcome can differ.
Settlement Negotiations vs. Litigation
Settlements happen when both sides agree on a payment without going to court. Most personal injury claims end this way. It’s faster and less formal. A lawsuit, on the other hand, involves filing a legal complaint and possibly going to trial if no agreement happens during the process.
Timeline Differences Between Settlements and Lawsuits
Settlements can wrap up in a few weeks or months. Lawsuits can take a year or longer, especially if the case goes to trial. The court’s schedule, the complexity of the case, and the number of parties involved all affect how long it lasts.
Cost Considerations for Each Approach
Most personal injury lawyers work on contingency, meaning they only get paid if you get money. However, lawsuits bring added costs, like court filing fees, expert testimony, and depositions. Those costs might come out of the final amount you recover.
Red Flags That Indicate You Need to Consider Legal Action
Sometimes it’s clear that the insurance company isn’t offering enough. Other times, the warning signs are more subtle. Here’s when to start thinking about taking legal steps.
Inadequate Settlement Offers from Insurance Companies
If the amount they offer doesn’t come close to covering your medical bills, lost wages, or how your injury affected your life, it’s time to question the offer. Lowball tactics happen often, especially early in the process.
Disputed Liability or Fault Determination
When the insurer says you were partly or fully at fault, they might try to reduce or deny your claim. If they’re twisting facts or ignoring key evidence, filing a lawsuit may be the only way to push back.
Serious Injuries with Long-Term Consequences
If your injury requires surgery, long-term therapy, or causes lasting problems, your claim needs to reflect that. Accepting a fast settlement could leave you paying for future care out of pocket.
Insurance Company Bad Faith Tactics
Delays, denial without reason, or ignoring your claim altogether are signs the insurer isn’t playing fair. These tactics can justify going to court to demand accountability.
Multiple Parties Involved in the Accident
Accidents with several vehicles or defendants often result in finger-pointing between parties. That can slow down the process and make a lawsuit necessary to sort out responsibility.
When Should You File a Personal Injury Lawsuit Instead of Accepting a Settlement?
Not every case needs a lawsuit, but when certain signs appear, it may be the better option.
Is the Settlement Offer Fair Compared to Your Damages?
Take time to add up all your losses: hospital visits, missed work, prescriptions, physical therapy, and how your daily life changed. If the offer doesn’t come close, it might be worth rejecting and filing suit.
Are Your Medical Treatments Still Ongoing?
You shouldn’t settle until your doctor can give a clear picture of your future needs. If treatment is ongoing, the final cost is unknown. A lawsuit gives time to fully understand what recovery will require.
Has the Insurance Company Been Acting in Bad Faith?
Unreturned calls, long delays, or pressure to accept fast are red flags. If they won’t work with you in good faith, a lawsuit puts legal pressure on them to respond seriously.
Do You Have Strong Evidence Supporting Your Case?
Photos, witness statements, medical records, and police reports build a strong foundation. The stronger your case, the more likely a lawsuit will result in better compensation.
How Long Do You Have to File a Personal Injury Lawsuit?
In most personal injury cases, the law sets a time limit for filing a lawsuit, known as the statute of limitations. In Texas, that deadline is generally two years from the date of the injury. If someone tries to file a lawsuit after this deadline, the court will likely dismiss the case, and the injured person will lose the right to seek compensation.
That two-year clock usually starts ticking on the day the injury happens, such as the date of a car crash, fall, or dog attack. However, some exceptions can extend or delay the deadline. For example:
- If the injured person is a minor, the clock might not start until they turn 18.
- If the injury wasn’t discovered right away, the court may allow more time from the date the harm was identified.
- If the claim is against a government agency, the Texas Tort Claims Act requires notices to be filed within just six months or less.
What Happens If You Miss the Filing Deadline?
You lose your right to seek compensation through the courts. Even if the insurance company was offering money before, they might pull it back once the deadline passes. Timely action protects your claim.
Types of Cases That Often Require Litigation
Some personal injury cases are more likely to lead to a lawsuit due to their complexity or the severity of the harm.
Catastrophic Injuries and Permanent Disabilities
Lifelong medical care, disability equipment, and loss of earning ability raise the stakes. Insurers resist paying these large claims, which often leads to court.
Product Liability Cases
If a faulty product caused your injury, the manufacturer might deny responsibility. You may need a lawsuit to hold them accountable.
Complex Multi-Vehicle Accidents
These involve multiple insurance companies and conflicting stories. Sorting it out fairly often means going through litigation.
Wrongful Death Claims
When someone passes away because of another’s actions, the surviving family may need a lawsuit to seek justice and compensation for their loss.
What Damages Can You Recover Through a Lawsuit That You Might Not Get in a Settlement?
A settlement and a lawsuit both aim to provide compensation, but they differ in how damages are awarded. In many cases, families choose to settle for predictability and a faster resolution. However, going to court sometimes results in additional or higher damages that an insurance company may refuse to offer voluntarily.
Here are some damages that may be more likely awarded through a lawsuit:
Full Non-Economic Damages
Insurance companies often undervalue non-economic losses like mental anguish, loss of companionship, and emotional suffering. A jury, on the other hand, may be more willing to recognize the deep personal impact of the loss and award a larger amount than a settlement offer provides.
Punitive Damages
Punitive damages are meant to punish gross negligence or intentional misconduct. Insurers almost never include them in settlements because they don’t want to admit fault. A judge or jury, however, may award punitive damages if the evidence shows serious misconduct, such as drunk driving or reckless behavior.
Pain and Suffering of the Deceased (Survival Claim)
In court, the estate may recover damages for the pain and suffering the deceased experienced before passing. These are often left out or minimized in settlements unless specifically negotiated, and a jury may place more value on that suffering than an insurer would.
Future Damages with Economic Adjustments
While settlements may offer a lump sum, lawsuits often allow for more thorough financial projections. Courts consider inflation, promotions, and raises when awarding damages for lost earning capacity, which can significantly increase the value of a case.
Attorney’s Fees or Court Costs (In Certain Cases)
Although not always recoverable, some lawsuits may include court-awarded fees and costs, especially in cases involving gross negligence or statutory violations. These are generally not part of settlement discussions unless specifically negotiated.
The Litigation Process: What to Expect
A lawsuit may sound intimidating, but it follows a clear process from start to finish.
Filing the Complaint and Serving Defendants
Your lawyer files a complaint outlining the claims. The other side receives notice and has a chance to respond.
Discovery Phase and Evidence Gathering
Both sides exchange documents, medical records, and other evidence. This part helps each side understand the facts.
Depositions and Expert Witness Testimony
Lawyers question parties under oath. Doctors or other professionals may also provide insight into injuries and damages.
Mediation and Settlement Conferences
Courts may schedule meetings where both sides try again to reach an agreement. Some cases settle here before going to trial.
Trial Preparation and Court Proceedings
If no agreement happens, both sides prepare for trial. This includes witness prep, legal briefs, and presenting the case to a judge or jury.
How Can a Personal Injury Attorney Help Maximize Your Compensation?
Legal help often makes a big difference when deciding between a settlement and filing a lawsuit.
Case Evaluation and Damage Calculation
An attorney looks at your case, estimates damages, and determines whether the offer from the insurer matches what the law allows.
Evidence Gathering and Investigation
They collect the right documents, speak with witnesses, and build a strong case that supports your claims.
Negotiation with Insurance Companies
They know how to deal with insurance adjusters who try to pay less than what’s fair. With legal support, the insurer may take your case more seriously.
Trial Representation and Advocacy
If your case goes to court, the attorney presents arguments, examines witnesses, and pushes for a verdict in your favor.
Weighing the Risks and Benefits of Filing a Lawsuit
Deciding whether to sue involves more than just thinking about money. You need to consider the trade-offs.
Potential for Higher Compensation
Lawsuits often result in bigger payouts, especially when injuries are severe and the insurer’s offer is low.
Time and Emotional Investment Required
The legal process takes time and can feel stressful. Court dates, paperwork, and waiting on decisions all take a toll.
Litigation Costs and Attorney Fees
While you may not pay upfront, some costs will come out of the final amount recovered. Your attorney should explain how that works upfront.
Uncertainty of Trial Outcomes
Trials bring risk. Even a strong case can go either way. Judges and juries don’t always agree on what’s fair.
Impact on Your Recovery Process
Some people prefer the quicker resolution of a settlement so they can move on. Others want to pursue full compensation, even if it takes longer.
Frequently Asked Questions About Personal Injury Lawsuits
Will I have to pay attorney fees upfront for a personal injury lawsuit?
No. Most personal injury lawyers work on a contingency fee. That means they only get paid if you recover money through a settlement or verdict.
How long does a personal injury lawsuit typically take?
It depends on the case. Some wrap up in under a year, while others take several years if they go to trial.
What if the defendant doesn't have insurance or assets?
You might still recover through other policies or compensation funds. Your attorney can help explore those options.
Can I still file a lawsuit if I was partially at fault for the accident?
Yes, in many states. The court may reduce your compensation based on your share of the fault, but you can still pursue damages.
What's the difference between mediation and going to trial?
Mediation is a chance to settle with the help of a neutral third party. A trial involves presenting the case in court and asking a judge or jury to decide.
Contact Our Texas Personal Injury Attorneys for Help
If your injuries are serious or the insurance offer doesn’t reflect what you’ve lost, you may need to file a lawsuit. DFW Injury Lawyers has helped many clients recover the compensation they deserve when insurers failed to treat them fairly. Our team can review your case at no cost, explain your legal options, and let you know if a lawsuit makes sense.
Don’t wait. The clock is ticking on the time you have to file a lawsuit.
Contact DFW Injury Lawyers today for a free case evaluation and find out how we can help. You can reach us online or by phone to schedule your consultation.