How Often Do Insurance Companies Settle Before Deposition?

Personal injury claims are often complex and involve various moving parts. Understanding the settlement process can be highly beneficial if you have a personal injury case you’re part of. A common question people ask is how often insurance companies choose to settle before depositions.

This can vary depending on the insurance company and case. However, some common themes might explain why the insurance company will settle before or after deposition.

The Deposition Phase for Personal Injury Cases

Not everyone understands the deposition phase in these cases. A deposition is a formal proceeding that happens out of court, where both attorneys can question witnesses under oath. This is considered sworn testimony and can be used later in court proceedings.

Timing in the Legal Process

In this type of lawsuit, deposition usually happens during the discovery phase. It occurs after the initial pleadings are filed and before any trial begins. It allows both parties to gather the necessary information to strengthen their case and work towards a settlement.

Importance in Case Evaluation

Insurance companies and your attorney understand the importance of depositions in case evaluation. They’re essential for several reasons:

• They can reveal new information that might weaken or strengthen a case.
• They provide an opportunity to hear directly from the parties involved and witnesses.
• They can help attorneys assess the credibility of key individuals.
• They allow both pirates to see the other side’s perspective and strategy.

With their importance, depositions can be a turning point for settlement negotiations or leading the case toward trial.

Settlement Before Deposition: Factors and Frequency

Many personal injury lawsuits will settle far before they require a trial date, but that’s not always the case. Still, the timing of the settlements can vary significantly. Settlements before depositions are possible but less common than settlements after deposition.

Likelihood of Pre-Deposition Settlement

It’s important to remember that pre-deposition settlements happen, but they’re far less common than you might think. Many cases require additional information only obtained through the deposition phase. Completing the deposition phase doesn’t mean you can’t settle your lawsuit out of court.

Factors Favoring Early Settlement

Even though it’s not the norm, pre-disposition settlements can happen. Factors that increase the likelihood of an early settlement are:

• Clear Liability: Insurance companies might not need to proceed to the deposition phase when fault is apparent.
• Reasonable Settlement Demands: When you make a fair and well-supported settlement offer, you’re more likely to get the case resolved quickly.
• Substantial Evidence: If the plaintiff has compelling evidence that supports their claim, like video footage of the incident, it can persuade insurance companies to settle early.
• Reputational Concerns: Defendants might seek an early settlement to avoid tarnishing their reputation with the community.
• Low-Value Claims: An insurance company will be far more likely to settle early without moving to deposition for smaller claims.

Cases Less Likely to Settle Early

Just like some cases have a higher chance of settling early, some cases are far less likely to settle before deposition:

• Lack of Supporting Evidence: When vital evidence is missing, insurance companies might hesitate to settle without further investigation.
• Complex Liability Issues: When fault is unclear or disputed, more investigation is necessary to establish who was at fault.
• High-Value Claims: The higher the claim’s value, the less likely insurance companies will want to settle early. Depositions allow them to lower your settlement if they can provide evidence as to why they should be able to.
• Policy Limits: Settlements that exceed the insurance policy limits might require the insurance company to be more cautious about an early settlement.
• Disputed Damages: If there’s a disagreement about the extent of the injuries and damages, parties might need depositions to clarify the problems.

Why an Insurance Company Might Settle Before Deposition

So, why would an insurance company choose to settle before deposition? Each insurance company will have its reasons based on the case.

Cost-Benefit Analysis

Insurance companies are businesses that consider various things before settling. They will carefully weigh the costs associated with every case they handle. Settling before deposition can be financially advantageous in some situations:

• Predictability: Settling early will give the company a known outcome instead of going through litigation, which creates uncertainty.
• Litigation Expenses: The costs of depositions, prolonged legal proceedings, and expert witnesses can be significant.
• Time Efficiency: Early settlements will free up resources they can allocate to other cases or business operations.

Risk Mitigation

In many lawsuits, settling early and before depositions can be a way for the insurance company to minimize potential risks:

• If an insurance company believes that depositions might reveal more information detrimental to its case, it might want to avoid depositions and settle early.
• When liability is clear, and damages could increase by setting a trial date, they might want to settle sooner rather than later.
• Insurance companies might want to settle early and confidentially for cases that may establish unfavorable legal precedents.

Favorable Evidence

When the evidence strongly supports the plaintiff’s lawsuit, insurance companies might be more motivated to limit settlement negotiations and avoid depositions:

• If vital witnesses are likely to provide testimony favoring the plaintiff, they might want to avoid depositions.
• They might want to settle as quickly as possible when there is enough well-organized evidence, medical records, injuries, and damages.
• Undisputed liability, like in rear-end collisions or documented negligence, can trigger early settlement offers.

Desire for Quick Resolution

For some claims, the insurance companies prefer to have a quick resolution:

• Settling quickly when the claims are valid can improve customer relations and retention.
• Good faith practices might come into play and prompt settlements without deposition because of the insurer’s commitment to fair claim-handling practices.
• Resolving cases early will lighten the load for insurance adjusters with numerous cases or more complex claims.

Why Cases Might Not Settle Before Deposition

Even though there are a lot of benefits to an early settlement, many personal injury cases will move to a deposition before resolving. You can set realistic expectations for the claims process when you understand why this might happen.

Need for More Information

Depositions are one of the most valuable information-gathering tools in the legal process:

• Depositions allow both parties to understand better the events leading up to an injury and the aftermath.
• Face-to-face questioning can help lawyers evaluate the credibility of all parties and witnesses involved.
• Depositions can reveal new information that can improve your case valuation.
• For cases with ongoing medical issues, depositions can allow medical experts to review medical records and provide their expert opinions.

Disputed Liability or Damages

In personal injury law, it’s expected that an early settlement is unlikely when fundamental aspects of the case are in contention:

• Cases with a shared fault or multiple defendants usually require depositions to clarify everyone’s role.
• When an insurance company believes pre-existing conditions are at play, they might use depositions to investigate further.
• If there’s any debate about whether the defendant’s actions caused the plaintiff’s injuries, depositions can provide the opportunity for clarity.
• In cases with significant damages, depositions might allow economic experts and medical professionals to assess the potential compensation accurately.

Strategic Considerations

In many personal injury cases, the decision to proceed to depositions is strategic:

• Depositions allow attorneys to test the strengths and weaknesses of their cases and how well they’ll hold up at trial.
• Either party can use depositions to strengthen their position for future settlement negotiations.
• Sometimes, depositions are used by either party to delay a resolution.
• Going to deposition gives each party an idea of how well a potential jury might perceive witnesses, which can influence settlement decisions.

Why You Need Professional Legal Assistance with Personal Injury Claims

Since every personal injury case is different, regardless of complexity, hiring a personal injury lawyer is the best way to ensure your rights are protected and you receive a fair settlement [2].

Evaluating Case Value

A skilled personal injury lawyer will provide you with invaluable assistance when determining the value of your claim:

• Attorneys can identify all the potential areas of compensation you might be entitled to, like future medical bills and non-economic damages.
• Most lawyers have a database of similar cases where they can benchmark your claim against other similar settlements and verdicts.
• Personal injury attorneys will work with other experts to gather testimony to support the compensation you’re seeking.

Negotiating with Insurance Companies

Working with a skilled personal injury lawyer will help level the playing field when you’re dealing with insurance companies:

• Lawyers understand insurance companies’ tactics and will utilize strategies to counteract them.
• They know how to present your case in the most compelling manner to insurance adjusters.
• Attorneys have the resources and experience to engage in long negotiations if necessary.
• Experienced lawyers will advise you on the optimal time to settle or when you should push for further negotiations or litigation.

Preparing for Depositions

While a lot of personal injury cases settle before depositions, if yours proceeds to depositions, your attorney will:

• Prepare for what to expect during the deposition and guide you in responding to questions.
• While deposing opposing parties or witnesses, they will ask targeted questions that support your case.
• Be present to object to any inappropriate questioning that violates your rights.
• Gather information to use in future negotiations or to prepare for trial.

Secure Expert Legal Representation!

Navigating through the complexities of personal injury claims is best done with an experienced personal injury lawyer in your corner. We have a proven track record of successfully representing clients dealing with various personal injury cases at Rosenfeld Injury Lawyers.

Our team knows how to handle every case with the care it deserves and protect your rights throughout the settlement negotiation process. We’ll fight tirelessly for your rights and for the maximum compensation based on your circumstances.

Consult a Chicago personal injury lawyer by calling (888)-424-5757.

All content undergoes thorough legal review by experienced attorneys, including Jonathan Rosenfeld. With 25 years of experience in personal injury law and over 100 years of combined legal expertise within our team, we ensure that every article is legally accurate, compliant, and reflects current legal standards.