What Is a Settlement?

If you’ve been injured in an accident, one of the first legal terms you might hear is “settlement.” But if you’re unfamiliar with the legal process, you may be wondering: What does that really mean, and how does it affect your case? 

At the Law Offices of Michelle Choe, clients are guided through the settlement process with clarity, care, and confidence. Ms. Choe makes sure you not only understand how a settlement works, but also whether it’s the right path for your specific situation. Her goal is to help you make informed decisions, so you can focus on healing while she focuses on securing the compensation you deserve. 

So, What Exactly Is a Legal Settlement? 

A settlement is a negotiated agreement between you and the at-fault party’s insurance company to resolve your claim without going to court. Settlements typically happen before a lawsuit is filed and often provide a much faster resolution than litigation. 

Once the insurance company receives notice of your claim, it may offer a settlement amount based on its internal assessment. However, these initial offers are rarely fair. That’s where Ms. Choe steps in by carefully evaluating your injuries, medical records, bills, long-term care needs, pain and suffering, and how your life has been impacted. 

After this thorough analysis, she sends a demand letter to the insurance company, often starting at the highest policy limit, and negotiates to ensure that you receive a fair and full settlement. Throughout this process, you won’t need to be involved in the day-to-day negotiations. Ms. Choe handles it all and brings the offer to you for approval when it’s ready. 

Who Decides Whether to Settle? 

While Ms. Choe manages the legal strategy and advises you on what she believes to be the strongest and fairest outcome, you always have the final say. If you are not satisfied with the offer or prefer to take your case to trial, Ms. Choe will fully support your decision and continue to fight for you in court. 

When Do Settlement Negotiations Begin? 

Settlement discussions typically begin soon after the accident, sometimes within weeks. However, before a final settlement can be reached, you must complete your medical treatment or get to a point of maximum medical improvement. This ensures that your total damages (including medical costs, pain, and long-term needs) are accurately assessed. 

Once treatment is complete, Ms. Choe drafts and sends the demand letter. The insurance company then has 30 days to respond, and negotiations usually continue for several more weeks. On average, the settlement process takes approximately 2 to 3 months, although timelines may vary depending on the case's complexity. 

What Happens If You Don’t Accept the Settlement Offer? 

If the insurance company refuses to offer a fair amount, or if you choose not to accept the final settlement, the next step is litigation. Ms. Choe will file a lawsuit and prepare to take your case to court, where a judge or jury can decide the outcome. 

How Is the Settlement Amount Calculated? 

Settlements are based on several types of damages, including but not limited to:   

• Medical bills (past and future) 
• Pain and suffering   
• Lost wages and time away from work 
• Property damage 
• Loss of enjoyment of life 
• Long-term care or rehabilitation costs 

Ms. Choe carefully reviews all medical records and documentation to calculate what your case is truly worth, and pushes back hard if the insurance company offers less than you deserve. 

Pros and Cons of Settling vs. Going to Court 

There are benefits and trade-offs to each path. Here’s a simple breakdown: 

Settlements 

Benefits of Settling: 

• No need to go to court 
• Shorter timeline (usually 2–3 months) 
• Less stressful   
• More privacy and less public exposure 

Drawbacks of Settling: 

• The first offer is often too low 
• You may need to negotiate harder to get full value 
• Once you accept a settlement, you waive your right to pursue additional compensation 

Trials 

Benefits of Going to Court: 

• Potential for higher compensation 
• Opportunity to hold the other party publicly accountable 

Drawbacks of Going to Court: 

• Can take 1–3 years 
• More costly and time-consuming 
• Less predictable outcome 

This is why Ms. Choe typically recommends attempting to settle first, especially when it’s possible to reach a fair result without enduring a lengthy trial. But she never settles for less than what’s right.   

What Should You Watch Out For in a Settlement? 

The biggest mistake injury victims make is accepting the first offer too quickly. Insurance companies are trained to settle claims as cheaply as possible. If you sign a settlement agreement too soon without talking to the Law Offices of Michelle Choe, you may be giving up your right to full compensation without realizing it. 

Ms. Choe protects her clients from being lowballed by carefully reviewing each offer, pushing back where needed, and only recommending acceptance when the terms are truly in your best interest. 

Ready to Learn More?  

If you’ve been injured and are wondering whether a settlement is the right option for you, contact the Law Offices of Michelle Choe today to schedule a consultation. Ms. Choe will guide you through your options, explain what a fair settlement entails for your specific situation, and manage the entire process on your behalf, allowing you to focus on what matters most: recovery and moving forward.