If you or a loved one has been injured in an accident in Ontario, you may be wondering: Do insurance companies always settle out of court for personal injury claims? Many people hope to avoid a long trial and want to understand how the personal injury settlement process works in Ontario.
As a former insurance defence lawyer, I have valuable insight into how insurance companies operate and decide on whether to settle a case.
The reality is that many personal injury claims in Ontario do settle out of court, but there’s no guarantee.
What is an “out of court” settlement?
An out of court settlement in a personal injury claim is an agreement between the injured person (the plaintiff) and the insurance company (or defendant) to resolve the case without going to trial. Instead of a judge or jury deciding the outcome, both sides negotiate a compensation amount that covers things like medical expenses, lost wages, and pain and suffering. Once agreed upon, the settlement is legally binding, and the case is closed with the court.
Why Many Personal Injury Cases Settle Before Trial
Insurance companies and our clients often prefer to reach an out of court settlement for personal injury claims because trials can be time-consuming, expensive, and unpredictable. Settling early allows both sides to avoid the uncertainty of a judge or jury’s decision and can help injured individuals receive compensation sooner.
Negotiations focus on liability (fault) and damages like medical expenses, lost wages, and pain and suffering. When both sides agree on a fair amount, the case often settles before going to trial.
Even when a trial seems likely, many cases can still settle at the last minute—sometimes right before court—because the pressure of a trial often motivates both sides to compromise.
When Personal Injury Claims Go to Trial in Ontario
Not all claims settle easily. Sometimes, insurance companies and the injured person cannot agree on the value of the claim.
Disputes may arise over:
- The severity of the injuries
- Future care and rehabilitation needs
- Loss of income or earning capacity
When negotiations fail, a trial may be the only way for a chance at fair compensation.
The Role of a Personal Injury Lawyer in Ontario
Having an experienced Ontario personal injury lawyer can make a big difference in negotiations with insurance companies. Lawyers understand how to present evidence, calculate damages, and push for a fair settlement.
Final Thoughts
While most personal injury claims in Ontario settle out of court, every case is unique. Whether your claim ends in settlement or trial depends on the facts, the negotiations, and sometimes the need for a judge or jury to decide.
If you or a loved one has been injured, speaking with a lawyer can help you understand your options and guide you through the personal injury settlement process in Ontario.
SAMUEL DAVIES
Sam is an associate lawyer at Bergeron Clifford LLP.
His range of experience in civil litigation includes advocating in medical negligence, mental health, motor vehicle and boating accident actions, statutory accident benefits and various other personal injury matters.
