When Should You File a Lawsuit in a Personal Injury Case?

When you’re injured due to someone else’s negligence, the first step in recovering compensation is usually filing an insurance claim. Ideally, the process should be straightforward – you report the accident, present evidence, and receive a fair settlement that covers your medical bills, lost wages, and other damages. 

But in reality, personal injury claims aren’t always that simple.

Insurance companies are businesses, and their goal is to pay out as little as possible. In many cases, they delay claims, offer lowball settlements, or outright deny liability. That’s when you may need to consider filing a lawsuit. 

But how do you know if legal action is necessary? When should you take your claim to court?

When Insurance Negotiations Aren’t Going Anywhere

The vast majority of personal injury claims settle out of court through negotiations with the at-fault party’s insurance company. However, not all settlements are fair. Insurance adjusters routinely undervalue claims in an effort to protect their company’s bottom line.

If an insurer offers a settlement that doesn’t fully cover your medical expenses, lost income, or long-term rehabilitation costs, you have the right to reject it and demand more. In some cases, hiring a personal injury attorney and having them negotiate on your behalf is enough to get a better offer. But if the insurer refuses to budge, filing a lawsuit puts legal pressure on them to take your claim seriously.

Lawsuits aren’t about being aggressive – they’re about making sure you receive the full compensation you’re entitled to, especially when an insurance company is lowballing your claim.

When the Insurance Company Denies Liability

One of the most frustrating experiences in a personal injury case is when the at-fault party’s insurance company refuses to accept responsibility for the accident. They may argue that their policyholder wasn’t negligent, shift blame onto you, or claim that your injuries aren’t as severe as you claim.

This tactic is common in car accidents, slip-and-fall cases, and workplace injuries. If you don’t have clear-cut evidence proving that the other party was at fault, insurers will try to dismiss your claim entirely.

“Unfortunately, insurance claims can be complicated, especially if a defendant denies liability or the insurance company refuses to negotiate fairly,” Parker & Bain LLC explains. “Filing a lawsuit offers solutions to these problems by allowing victims to initiate personal injury lawsuits and take their claims to court.”

A lawsuit forces the insurance company to face legal scrutiny. Once your case goes to court, they’ll have to provide evidence supporting their denial, and your attorney will have the opportunity to present medical records, witness testimony, expert opinions, and accident reports that prove liability.

When You Have Damages That Go Beyond Medical Bills

Personal injury claims aren’t just about covering hospital bills. Your injury might have affected your ability to work, forced you into long-term rehabilitation, or caused emotional distress that impacts your daily life. In serious cases, victims may suffer permanent disabilities, requiring a lifetime of medical care and adjustments to their living situation.

If your damages are substantial, you can’t afford to accept a quick settlement that doesn’t account for the full extent of your losses. Insurance companies often undervalue pain and suffering, lost future earnings, and long-term care costs – but filing a lawsuit ensures that a judge or jury can evaluate the true impact of your injuries.

When considering legal action, ask yourself:

• Will this settlement fully cover my future medical expenses?
• Am I being compensated fairly for lost wages and reduced earning potential?
• Does this offer account for my pain, suffering, and emotional distress?

If the answer is no, taking your case to court may be the best way to fight for fair compensation.

When the Statute of Limitations Is Running Out

Every state has a statute of limitations – a legal deadline that dictates how long you have to file a lawsuit after an injury. If you wait too long and the deadline expires, you lose your right to seek compensation entirely.

In most states, the statute of limitations for personal injury claims ranges from one to four years from the date of the accident. But there are exceptions. Some cases, like medical malpractice or injuries involving government entities, have even shorter deadlines.

If you’ve been negotiating with an insurance company for months (or years) without progress, don’t let the clock run out. Filing a lawsuit before the statute of limitations expires preserves your right to compensation and prevents the insurance company from using time against you.

When the At-Fault Party Has No Insurance

Not all personal injury claims involve insurance companies. In cases where the at-fault party is uninsured or underinsured, your only option for recovering damages may be to sue them directly.

This often happens in car accidents involving uninsured drivers, or when a negligent business owner doesn’t have proper liability coverage. If the person responsible for your injury lacks insurance, you can file a lawsuit to seek compensation from their personal assets, wages, or business holdings.

Adding it All Up

If you’ve been hurt in a car accident, slip-and-fall, or some other situation where someone else should be held liable, don’t let the insurance companies give you the runaround. At some point, filing a lawsuit is the only way to make them treat you fairly. 

Begin by working with an attorney and let them guide you through the process.