The Difference Between a Personal Injury Settlement and a Court Award 

There are only two methods to receive insurance company money. A voluntary payment is termed a settlement. If the defendant in an injury case is sued, the insurance company will employ attorneys to defend the defendant. If the matter goes to trial and the Plaintiff wins, the defendant must compensate the Plaintiff, referred to as an award. 

In most circumstances, the insurance company pays the reward, but in other cases, the insurance company and the defendant must pay the amount. To learn more, talk to a Fort Wayne personal injury lawyer today. 


Awards and settlements can be made at any time. Following an injury, a settlement might be struck at any moment. Settlements tend to be completed considerably faster than awards. Settlements should never be contemplated until the injured party has completed medical treatment, has been freed from medical care, and has fully comprehended their damages and the consequences of the accident. As a result, small injury claims can be settled significantly faster than serious damage claims. Awards are nearly always delayed since the claim must be contested.

Suppose an insurance company provides an acceptable settlement amount before the Plaintiff initiates a lawsuit. In that case, it may be preferable for the Plaintiff to settle the case for that amount rather than waiting 18 months or more for the possibility of earning a greater settlement sum. Depending on the court’s decision, the Plaintiff may obtain a settlement less than the insurance company’s first offer.

A plaintiff may have to wait up to 18 months before a jury hears a case. The precise period depends on the jurisdiction and circumstances of the case. As a result, everything else being equal would be preferable to settle the dispute rather than wait for a jury award.


You know just how much you can have if you have an amount on the table and your skilled injury attorney has persuaded the insurance company to provide their top pay. However, if the case is brought to a jury, regardless of how well-presented the case is, the amount the jury may award, if any, is unknowable. So the risk is the difference here.

In some cases, it may be desirable for a claimant to risk the amount of money provided in exchange for the possibility of receiving a considerably bigger award. On the other hand, others say that a bird in the hand is worth two in the bush and that as long as an offer is reasonable, it may be worthwhile to settle the situation.