When you are in a car accident where the other driver was to blame, you probably filed a claim with the other person’s insurance company. But settlement negotiations are stalled. You cannot seem to get the claim settled for what your attorney thinks it is worth. Should you settle or sue?

There is one major reason to file a lawsuit after a car accident: Money. Plaintiffs do not file lawsuits unless necessary most of the time. If you and your attorney do not think the insurance company will make a fair settlement offer, then it is time to consider a lawsuit.

How far apart the plaintiff and defense should be before filing suit will depend. Lawsuits are usually filed in car accident cases where there is strong disagreement on your pain and suffering. There is no exact calculation possible for your pain and suffering; there are only educated guesses. Sometimes the plaintiff and defense will come to very different conclusions about what your pain and suffering is worth.

For example, say you and your attorney value your claim at $40,000 to $60,000. The insurance company offers $50,000. Most attorneys would advise you to settle immediately; it is not worth filing suit over only $10,000. An offer of $38,000 would probably be one to take the settlement as well. But if the insurance company low balls you with a $20,000 offer, a lawsuit is probably in order.