Settle when an offer fairly covers what you have lost and you know enough about your injuries to judge that. File a lawsuit when the insurer will not pay a fair amount and the filing deadline is coming, or when there is a dispute that only a court can resolve. The two are not opposites: many claims are filed and then settle. Whichever you choose, the choice is yours. This page compares the two paths. It is part of the Compare section of our Montana Injury Claim Guide, and our article on how a Montana car accident settlement works walks through the settlement steps in order.
The Two Paths Side by Side
| Settling with the insurer | Filing a lawsuit | |
|---|---|---|
| Who decides the amount | You and the insurer agree on it. Nobody can make you accept an offer. | A judge or jury, if the case is tried. You can still settle at any point before a verdict. |
| What ends the claim | A signed release. | A judgment, a dismissal, or a settlement reached during the case. |
| The deadline | Talks do not stop it. If the claim is not settled in time, it has to be filed. | Filing the complaint before the deadline preserves the claim (MCA §§ 27-2-102, 27-2-204). |
| Fault | Argued between you and the adjuster. | Decided by the judge or jury, who assign percentages of fault (MCA § 27-1-702). |
| Cost | Usually fewer case expenses. | Filing fees, depositions, records, and witness fees add up. A contingent fee agreement may set a different percentage for trial or appeal (Rule 1.5(c)). |
| Time | Can be resolved once your treatment has stabilized and the claim is documented. | Runs on a court schedule, which is usually longer. |
What Settling Involves, and What a Release Ends
A settlement is a contract. The insurer pays an agreed amount, and you sign a release that gives up the claim. Read that part slowly, because a release is final. If a problem related to the crash surfaces months later, the release generally prevents you from going back. That is the strongest reason not to settle while you are still in treatment or before a doctor can say whether an injury is permanent.
Before the money reaches you, anyone with a right to be repaid gets dealt with. Treating providers who serve the required notice have a lien on settlement money (MCA § 71-3-1114), and Medicaid has a lien to the extent it paid for medical care for the same injury (MCA § 53-2-612). A good settlement is judged by what is left after those are paid, not only by the headline number.
What Filing a Lawsuit Involves
A lawsuit starts when the complaint is filed (MCA § 27-2-102(1)(b)). For most injury claims it has to be filed within 3 years (MCA § 27-2-204), and some claims, such as one against the State, have a written-claim step that must come first (MCA § 2-9-301). After filing, each side can gather evidence formally, and the case moves on a court schedule.
Filing does not commit you to a trial. The parties can settle at any point before a verdict. If the case is tried, the judge or jury decides fault as well as damages, and your recovery is reduced by your share of the negligence, or barred if your share was greater than that of the people you sued (MCA § 27-1-702).
A lawsuit also costs more to run. Filing fees, depositions, records, and the fees of witnesses who explain medical or technical questions are case expenses, separate from any attorney's fee. A contingent fee agreement must state the percentage the lawyer receives on settlement, trial, or appeal, so the percentage can differ by stage, and it must say which expenses you would owe whether or not you recover (Rule 1.5(c), Montana Rules of Professional Conduct). Ask to see those terms before you decide. Our page on how injury lawyers charge explains them.
When Settling Is the Better Choice
- Your treatment has ended or stabilized, and you know what your injuries will cost going forward.
- Fault is clear, and the offer covers your medical bills, lost income, and the effect on your daily life.
- The offer is near the limit of the available insurance, and there is no other source of payment.
- The time, cost, and uncertainty of a court case are worth more to you than a possible difference in the result.
When Filing Suit Makes Sense
- The insurer will not make a fair offer, or disputes fault or your injuries without a real basis.
- The filing deadline is approaching and the claim is not resolved.
- More than one party may be responsible, and the facts need to be sorted out with formal evidence.
- The insurer has handled the claim unreasonably. Our insurance claims page explains what Montana law expects of insurers.
If a city, county, or the State is responsible, know the ceiling before you weigh an offer. A government entity is not liable for more than $750,000 for each claim and $1.5 million for each occurrence (MCA § 2-9-108), and it cannot be made to pay punitive damages (MCA § 2-9-105).
Whose Decision It Is
Yours. Rule 1.2(a) of the Montana Rules of Professional Conduct says: "A lawyer shall abide by a client's decision whether to settle a matter." A lawyer's job is to tell you what an offer means, what a lawsuit would involve, and what the risks are on each side, and then to carry out your decision. To see what that work looks like day to day, read what an injury lawyer actually does. To understand what moves an offer up or down, read what affects the value of an injury claim.
This page explains Montana law in general as of the 2025 Montana Code Annotated and the current Montana Rules of Professional Conduct. It is not legal advice about your situation.