Were you injured as a result of another person’s negligence?
If so, you’re probably wondering how much money you’re entitled to and how long it will take to get it. Personal injury settlements play an important role in getting your life back on track after an accident, so here is everything you need to know about them.
A little secret…
The truth is, most people have no idea how the personal injury settlement process works. They assume it’s a walk in the park and they just get a big fat check the next day. But let me tell you, the reality is, 95% of personal injury cases are settled out of court, and the process is a lot more complex than most people think.
What you will learn:
- The Settlement Negotiation Process Explained
- How Long Personal Injury Settlements Really Take
- What Factors Affect Your Settlement Amount
- The Final Steps to Getting Your Money
The Settlement Negotiation Process Explained
Do you want to know how personal injury settlements get negotiated in real life?
It’s not as easy as you think. Personal injury settlement negotiations can be long, drawn out, and arduous. The negotiation process all begins with your attorney issuing the defendant’s insurance company a “demand letter.” This letter details the defendant’s negligence and requests compensation.
However, here’s the kicker…
Insurance companies don’t simply give you the money you ask for. The insurance adjuster will fight tooth and nail to pay you as little as possible. It is from this point that the serious negotiation begins.
It all involves the following steps:
- Completion of medical treatment – You can only settle if you know the full extent of your injuries
- Issuance of demand letter – Your lawyer details the case and requests a specific compensation amount
- Insurer’s response – The insurer accepts, rejects or counters your offer
- Negotiations – Parties try to reach an agreeable number
- Final agreement – The parties agree to the terms
Negotiating a settlement for serious injuries can be a complicated process that requires an experienced personal injury law firm in Chicago IL working on your behalf.
Negotiating the settlement is both art and science. Your lawyer has to present irrefutable evidence, while the other side attempts to poke holes in your claim. Every piece of evidence like medical records, witness testimonies, and accident reports, get poured over.
How Long Personal Injury Settlements Really Take
Prepare to have your mind blown…
Half of all auto vehicle personal injury cases are settled within 14 months. But, that is just the median. Some cases take only a few months to settle while others linger for years.
So, what affects the timeline?
Simple cases: Liability is clear-cut, injuries are minor, and insurance companies are cooperative. These usually settle in 3-6 months.
Complex cases: Fault is disputed, injuries are severe, and multiple parties are involved. These cases can take 1-3 years or more.
Getting to the demand letter phase itself can take 3-6 months. Why? Because the insurance company doesn’t have a reason to pay you right away, so they are going to use every delay tactic possible to stonewall you. They will request more documentation, continually change the insurance adjuster, and stall in every way imaginable.
However, this is what most people don’t realize…
Insurance companies know people get hurt and need money. They know that you are desperate and they count on it. 70% of the people who waited for a better offer received settlements that were $30,700 higher than those who immediately took the first offer.
Settlement negotiation itself takes about 1-3 months after all medical treatment has been completed and evidence is gathered. But, never let anyone rush you into making a decision. You cannot change your mind later, so take your time to weigh the pros and cons.
What Factors Affect Your Settlement Amount
Personal injury settlements come in all shapes and sizes.
The average personal injury settlement received by law firms’ clients ranges between $24,000 and $55,100. However, here are the key factors that determine your specific settlement amount.
Severity of injury: By far the most important factor. Broken bones may garner $15,000-$50,000 while life-threatening brain injuries can command million-dollar-plus verdicts.
Medical costs: Emergency room visits, hospital stays, medications, rehabilitation costs, and future medical care all factor into the final number.
Lost earnings: Past and future lost wages if you cannot return to work.
Pain and suffering: The most difficult aspect to value but sometimes the most valuable part of the claim.
Liability: Clearly defined liability can result in quick settlements with higher payouts while contested liability leads to lower or no compensation.
Something that most people don’t know…
Individuals with personal injury lawyers end up with payouts that are almost three times higher than those without. This is because attorneys are trained to properly value the case and are not afraid to fight the insurance company.
Statistics are very clear on the subject:
- 91% of people with lawyers end up receiving settlement payouts
- Only 51% of people without representation receive any form of compensation
The Final Steps to Getting Your Money
You and the insurance company have agreed on a settlement amount. Now what?
Here is where the reality sets in. The insurance company does not just hand over a check. A few final things need to happen first.
Signing release documents: You will sign a document stating that you will not pursue further legal action against the insurance company for this incident. Read the release documents very carefully – this is a permanent agreement.
Liens and deductions: There are a number of parties who will get a piece of the pie before you see any money:
- Your attorney’s fees (usually 33-40%)
- The medical providers that treated you
- The insurance companies that initially paid your medical bills
- Unpaid child support in certain states
Settlement check processing: After all of these deductions, it usually takes 30-60 days to process the final settlement check.
Here is something else that surprises most people…
Your gross settlement and your net payout can be two very different numbers. You may settle for $100,000 and receive only $40,000-$50,000 after deductions.
The process moves quickly once settlement terms have been agreed upon. The insurance company is anxious to close the file and your lawyer wants to get paid, so don’t rush into signing anything until you are sure you understand the final documents.
Wrapping Things Up
Personal injury settlements aren’t lottery winnings they are calculated figures based on real damages and evidence. The process takes time, requires patience, and is always best conducted with experienced legal counsel.
A few points to remember:
- Most cases will settle out of court, but it takes time
- Don’t take the first offer – the insurance company expects you to negotiate
- Document everything and follow through with your medical treatment
- Retaining a lawyer dramatically increases the chances of receiving fair compensation
The settlement negotiation process can be overwhelming but, knowing how it works arms you with the knowledge to receive the compensation you deserve. Take your time, build a strong case, and don’t let anyone rush you into a quick settlement that undervalues your case.
Your future self will thank you for getting this right the first time.
