Settling, or filing suit
At some point in most claims the insurer stops moving. The decision then is whether the gap between their number and yours is worth what filing involves. It is your decision, and it should be made with the full picture rather than on principle.
What filing actually changes
- It unlocks compulsion. Before filing, nobody has to give you anything. After filing, records can be subpoenaed, witnesses deposed, phone records obtained and company documents demanded. In some cases that is the whole point.
- It changes who is deciding. A claim sitting with an adjuster is often handed to defense counsel after filing, and a different person with different incentives re-evaluates it.
- It sets a trial date. Nothing concentrates minds like one.
- It stops the limitation clock — sometimes the only reason filing happens when it does.
What it costs you
| Cost | What it actually means |
|---|---|
| Time | Commonly another year to two years, depending on the county. |
| Privacy | Your medical history relevant to the claim becomes discoverable. If you claim psychological injury, mental health records may come with it. |
| Your participation | A deposition, written discovery answers under oath, a defense medical examination, and possibly trial. |
| Case costs | Filing fees, deposition transcripts, records, and expert witnesses — which in a contested case are the single largest cost and come out of the recovery. |
| Risk | A jury can award less than the last offer, or nothing. That risk is real even in a strong case. |
A workable way to decide
- Compare net to net. What the current offer leaves you after fees, costs and liens, against what a realistic post-suit outcome would leave you after larger costs. The gross figures mislead.
- Identify the actual disagreement. If it is causation, is there evidence that would resolve it? If it is fault, is there footage or a witness? If filing cannot produce the missing thing, it may not change the number.
- Check the ceiling. If the insurer has already offered its policy limit and no other coverage exists, suing to recover more from someone with no assets is usually pointless.
- Be honest about your tolerance. Some people would rather have certainty now than a larger uncertain number in two years, and that is a legitimate preference rather than a failure of nerve.
Questions people ask
If we file, will we end up in a trial?
Probably not. The large majority of filed cases settle, most of them at mediation. Filing is better understood as a way of changing the negotiation than as a commitment to a trial.
Can I get less than they offered if I sue?
Yes. A jury can award less than the last offer, or nothing at all, and costs will have been incurred along the way. Anyone who tells you filing is risk-free is not describing litigation.
Related
Reviewed October 2026 by Simon Aziz Budhwani, Esq., the attorney responsible for this site. Legal statements here name the California code section they rely on, so you can check them rather than trust them. This is information about the law in general, not advice about your situation.
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