Settlement
- You decide whether to accept
- Can happen before or after a lawsuit is filed, even mid-trial
- Ends the claim through a signed release
- Payment usually follows within weeks
Claims process
Settlement vs trial
A settlement is a deal you agree to. A trial hands the decision to a judge or jury. Most injury claims end in a settlement, so the real question is usually whether the offer in front of you is good enough.
The short answer
Settle when the offer fairly reflects your full losses and the realistic risks of losing or winning less at trial. Go to trial, or at least keep preparing for it, when the offer ignores strong evidence or your future needs. Never settle before you know how your recovery will turn out, because a signed release is almost always final.
At a glance
Trial
- A judge or jury decides the amount, or whether you get anything
- Evidence rules and legal arguments shape the result
- Usually takes place a year or more after filing
- The losing side may appeal, adding delay
| What differs | Settlement | Trial |
|---|---|---|
| Control | You choose whether to accept | The court controls the result |
| Certainty | You know the exact figure before agreeing | You could get more, less or nothing |
| Time | Can close at almost any stage | Only after discovery, expert reports and a trial date |
| Cost | Lower legal costs and expert fees | Expert, court and preparation costs rise sharply |
| Privacy | Terms are often confidential | Hearings and judgments are usually public |
| Finality | The release ends the claim for good | Judgment may be appealed |
Why most injury claims settle
Both sides face risk at trial. You could lose on fault or be awarded less than you hoped. The insurer could face a verdict far above what it expected. Settlement lets both sides trade that uncertainty for a known number, and it saves the cost of expert witnesses, depositions and days in court.
Settlement can happen at any point: after a demand letter, after a lawsuit is filed, after depositions, at mediation, or on the morning of trial. Offers often improve as the trial date gets closer, because that is when the insurer's own costs and risks become real.
What a trial looks like in the US, UK and Canada
United States. Injury trials are often heard by a jury in state court. Before trial, both sides go through discovery: exchanging records, answering written questions and giving sworn testimony. Many lawyers work on contingency, and some fee agreements set a higher percentage if the case goes to trial, so check yours.
England and Wales. Personal injury trials are heard by a judge alone, without a jury. Part 36 offers matter a great deal. If you turn down a defendant's Part 36 offer and then fail to beat it at trial, you will usually have to pay the defendant's legal costs from the date the offer expired, which can eat heavily into your award.
Canada. Some provinces, including Ontario and British Columbia, allow civil juries in many injury cases, while others are usually decided by a judge. Provinces have formal offer rules with cost consequences, such as Rule 49 in Ontario, that work in a similar way to Part 36.
How to judge a settlement offer
- Has your condition settled? Wait until you reach maximum medical improvement or have a clear prognosis, so future treatment and lost earnings are counted.
- What will you actually receive? Subtract legal fees, case costs and any money you must repay to health insurers or benefit providers.
- How strong is the fault case? A shared-fault argument can cut a trial award, so an offer that already reflects some risk may be sensible.
- Is there enough insurance? A verdict above the other side's policy limits can be hard to collect.
- Can you wait? Trial can add a year or more. Your finances and stress levels are fair factors to weigh.
Example
A cyclist hit by a van has surgery on a broken wrist. Four months later the insurer offers a settlement covering her bills and time off work so far. Her surgeon says she may need a second operation. She holds off, gets a report on her likely future treatment, and the claim settles later at a higher figure that includes that surgery and the extra time off work.
Common questions
Do most personal injury cases settle before trial?
Yes. The large majority of injury claims settle, many without a lawsuit ever being filed. Of those that do go to court, most still settle before or during trial, often after depositions or a mediation.
Can I reopen a settlement if my injury gets worse?
Almost never. The release you sign usually gives up all future claims from the accident, known or unknown. Courts only set releases aside in rare situations such as fraud. That is why it pays to wait until your doctors can describe your long-term outlook.
Will I get more money if I go to trial?
Sometimes, but not reliably. A jury or judge may award more than the last offer, less, or nothing if they find you were mostly at fault. Higher costs, possible appeals and, in England and Wales, Part 36 penalties all come off the value of a trial win.
Can I change my mind after accepting a settlement offer?
Usually not once you have accepted and signed. A verbal or written acceptance can itself form a binding agreement in many places, so don't say yes until you are sure.
Last reviewed September 2026. General information, not legal advice.