If you’re involved in a personal injury case, you’re not alone. There are approximately 400,000 personal injury claims filed each year. And while only about 4% go to trial, with the rest being settled out-of-court, the length of time it takes to settle a claim can vary widely.
Keep reading to get the answer to, “How long does a personal injury settlement take?”
At Yale Haymond Law PLLC, we know firsthand the nightmare you’re facing as you attempt to navigate paying medical bills, heal from your injury, and recover financial compensation. A Charlotte personal injury attorney can help. Contact us to schedule a free case evaluation.
How Long Does a Personal Injury Settlement Take?
The short answer to this question is, “It depends.” Every case is unique, and there are numerous variables that can affect the timeline. While some cases can settle in a matter of days or weeks, others can take months (or even years). It usually comes down to personal injury case complexity.
Having an understanding of the settlement process can help you get a grasp on an estimated timeline.
Whether you’ve been involved in a car accident, slip and fall case, motorcycle accident, or some other scenario in which a negligent or reckless party caused you to sustain a serious injury, a personal injury claim typically involves the following five steps:
1. Seeking Medical Treatment and Assessing Damages
Before anyone can proceed with a claim for personal injury, it must be established that someone was actually injured. This can often be presumed by visiting a doctor to evaluate the extent of an injury and seek medical attention.
Any Charlotte personal injury attorney will likely tell you that you should seek medical attention as soon as possible after an incident, even if you believe your injuries are minor. The reason is that a delay can be detrimental to your health because an undetected injury can worsen over time and be exacerbated by a lack of treatment.
Further, it can be argued that a failure to seek medical attention means that you weren’t seriously injured, which can compromise your claim.
How Medical Documentation and Claim Evaluation Affect the Settlement Timeline
It’s important to realize that most of the time, you’ll be dealing with the other party’s insurance company to negotiate a settlement. This is why answering the question of “how long does a personal injury settlement take?” is so challenging. Individual insurance companies tend to have different procedures for settling claims, and naturally, that means some move more quickly than others.
While the insurance company on the other side of your personal injury claim matters, there are other factors that can compress or lengthen the time it takes to settle.
Specifically, the severity and complexity of your injury will have an impact on the settlement negotiation process because you should reach a stage known as “maximum medical improvement” (MMI) before you can adequately negotiate a settlement.
How long it takes to reach MMI depends on how serious your injury is. If your injury is relatively minor, you can heal within a few weeks or months, and then the negotiation process can begin. On the other hand, if your injury is severe or requires long-term treatment, doctors may need longer to accurately evaluate the extent of your injuries.
Note that both your attorney and the insurance company will collect and evaluate evidence to determine the value of your claim. This evidence may include:
- Doctor’s notes
- Hospital records
- X-rays, MRIs, etc.
- Costs of medications and treatments
- Lost wages and calculations of future lost earnings
Generally speaking, the more evidence you have to demonstrate losses and expenses, the stronger your case and the more likely you are to receive a fair settlement. However, gathering this evidence also takes time.
2. Investigating the Claim and Gathering Evidence
Once you’ve decided to move forward with a personal injury claim, the next step is gathering evidence to build a compelling case. The goal, of course, is to obtain a settlement amount that is as high as possible – so long as it’s fair and in good faith.
As soon as possible, your attorney will begin working with you to obtain the following types of evidence:
- Police reports (if applicable)
- Medical records and bills
- Photos of injuries and property damage
- Witness statements
- Forensic evidence
- Any available surveillance footage
- Proof of lost wages (pay stubs, for example)
How Evidence-Gathering Affects a Personal Injury Claim
Collecting evidence to support your case often involves requesting records from third parties. How quickly these people and entities respond to requests can greatly impact your settlement timeline. It’s realistic to expect insurance company delays, especially if the size of your claim is substantial.
3. Filing a Demand With the Insurance Company
When your attorney has architected your case, the law firm will then submit a demand letter to the at-fault party’s insurance company. This letter outlines the nature and extent of your injuries and a request for an appropriate settlement amount based on your medical expenses, lost wages, pain and suffering, and other compensable damages.
After receiving the letter, the insurance will review it, and you can expect either an acceptance, denial, or the commencement of negotiations.
How Negotiations Affect Your Settlement
As you can imagine, the settlement negotiation process is extremely unpredictable in a personal injury case. The probability that an insurance company will accept the first settlement offer drafted by your attorney is low. It’s more likely that the insurance company will either counteroffer with something lower or deny the claim outright.
In the event of a lowball offer, your attorney will represent you in settlement negotiation talks, fighting for fair compensation that accurately reflects the damages you (or a loved one) sustained.
Unfortunately, some insurance companies deliberately delay negotiations to pressure you into accepting a lower (unfair) offer. This is one of the reasons why answering, “How long does a personal injury settlement take” is so difficult – the level of cooperation from the insurance company plays a key role.
Common tactics insurance companies use to extend the settlement timeline include:
- Taking an inordinate amount of time to review your medical records
- Requesting unnecessary, cumulative documentation
- Disputing their client’s liability
- Delaying responses to correspondence
Trying to battle an insurance company as an individual, especially when you’re dealing with an injury, is a complex process.
4. Negotiating a Settlement or Filing a Lawsuit
Even though the vast majority of personal injury claims are settled through negotiations with insurance companies, it’s possible that a claim can still go to trial. Keep in mind that settlement negotiations can span weeks or months, and a trial adds a significant amount of time to this process. After filing the lawsuit, there will be a discovery phase, a chance for mediation and arbitration, and the trial itself. This can take a total of up to three years (sometimes longer).
If your attorney files a lawsuit on your behalf, there will be several other steps that need to be completed before your case goes to trial. Knowing that a lawsuit means it can take longer to resolve a claim, it’s worth weighing the pros and cons of each option.
Litigation vs. Out-of-Court Settlement
While answering the question of “how long does a personal injury settlement take,” can result in a wide range of timelines, the overall average, according to Forbes, is 11.2 months. For some people, this seems like an eternity, and others may feel like this is completely reasonable.
Whether you go to court or choose to settle, going the settlement route is going to be faster than dealing with a court case.
The benefits of settling out-of-court include:
- Faster resolution (usually within about 6-12 months)
- Avoid court costs and other legal expenses
- Less stressful than dealing with a trial
In almost all cases, your attorney will attempt to settle, but if this isn’t possible, then a lawsuit may be necessary.
A personal injury lawsuit can extend the length of time it takes to receive a check from the insurance company, but there are some potential benefits to going to court, including:
- Potential for higher payouts
- Legal pressure imposed on insurance companies to be fair
- Opportunity to shape legal precedents for cases similar to yours in the future
Note, however, that going to trial is risky because there is no guarantee that you’ll win. Further, as stated, a trial can significantly extend your personal injury case timeline.
5. Reaching a Settlement and Receiving Compensation
Assuming both parties agree on a settlement, the last step is receiving a check from the insurance company. The final check issued will most likely deduct outstanding medical bills, attorney’s fees, and other costs associated with settling your case. The remaining balance of your settlement should reflect these deductions.
There may also be tax implications depending on how much of your settlement award is divided between:
- Actual damages
- Pain and suffering (and other emotional compensation)
- Punitive damages
When Settlement Checks Are Delayed
Even after finding out “how long does a personal injury settlement take,” there’s still the final matter of receiving the funds from your settlement. It’s reasonable to expect settlement check processing time to be between 1-6 weeks, it’s possible that there could be delays based on the following:
- A higher-than-average settlement or particularly complex case: The insurance company will dot every “i” and cross every “t” to make sure no mistakes were made.
- The insurance company has an irregular issuance schedule: If an insurance company only issues checks on certain days of the week or month, this could delay your check if the case settles on a day outside of this window.
- Delayed processing: A bank could potentially place a hold on the check or there could be some logistical delays when compensating other parties.
Bureaucratic delays can be frustrating and extend the timeline. Your lawyer will be able to keep you updated on when you can expect to receive your funds and notify you of any of these delays.
How Long Does a Personal Injury Settlement Take: Fast vs. Slow Cases
The timeline of personal injury settlements varies, but here’s a general breakdown of what you can expect. Your attorney may also be able to give you a clearer estimate after evaluating the complexity and merits of your case.
Fastest Cases: 3-6 Months
Some cases can be settled relatively quickly if the injuries are minor, and it’s clear that the other party was at fault. Further, if the liable party’s insurance company is cooperative, this can compress the timeline significantly.
Moderate Cases: 6-12 Months
When there are more serious injuries or fault is a gray area, it may involve a greater degree of negotiation. This can significantly extend the timeline by several months.
Complex Cases: 1-3 Years or Longer
As cases get more complicated and more is at stake, the timeline naturally increases. This may be because the injuries need to heal before settlement talks can even begin. Another factor is that when the potential payout is higher, insurance companies are less likely to agree to a final number without further evaluation, investigation, and negotiation.
The amount of time it takes to resolve the claim can also be extended if settlement negotiations are unworkable and the case goes to trial. Having some patience and knowing that your attorney has a sound legal strategy can go a long way to having peace of mind, and this is also vital to securing fair compensation.
Contact an Experienced Charlotte Personal Injury Attorney
After sustaining an injury as a result of someone else’s negligent act, you’re likely wondering, “How long does a personal injury settlement take?” The truth is that the timeline varies, and the complexity of your case, the extent of your injuries, and the cooperativeness of the insurance companies can also influence the date of the final resolution.
One of the key benefits of personal injury lawyer representation is having a legal advocate who understands the complex framework of personal injury law and can negotiate on your behalf. For assistance with a personal injury claim, contact Yale Haymond Law PLLC at 704-800-HELP to request a free case evaluation.
