Understanding Personal Injury Settlements: What to Expect
If you've been injured due to someone else's negligence, you may be entitled to compensation through a personal injury settlement. Understanding how this process works can help you make informed decisions about your case.
A personal injury settlement is an agreement between the injured party (plaintiff) and the at-fault party or their insurance company (defendant) to resolve a claim without going to trial. Most personal injury cases settle out of court.
The settlement process typically begins after you've reached maximum medical improvement (MMI), meaning your condition has stabilized and doctors can assess the full extent of your injuries and future medical needs.
Your attorney will calculate your damages, which may include medical expenses (past and future), lost wages, loss of earning capacity, pain and suffering, emotional distress, and loss of enjoyment of life.
Once damages are calculated, your attorney will send a demand letter to the insurance company outlining your injuries, treatment, and the compensation you're seeking. This begins the negotiation process.
Insurance companies often make low initial offers. Don't be discouraged—this is normal. Your attorney will negotiate on your behalf, using evidence and legal arguments to justify a higher settlement.
The negotiation process can take weeks or months. Factors affecting timeline include the complexity of your case, the severity of your injuries, and how willing the insurance company is to negotiate in good faith.
If negotiations stall, your attorney may file a lawsuit. This doesn't mean you'll go to trial—many cases settle during the litigation process, sometimes even on the courthouse steps.
When you accept a settlement, you'll sign a release waiving your right to pursue further legal action related to the incident. Make sure you understand the full extent of your injuries before accepting.
Settlement funds are typically distributed within a few weeks of signing the release. Your attorney will deduct their fees and any case expenses, and you'll receive the remaining amount.