Were you in an accident recently that left you with huge medical bills and unable to work? You can receive compensation after an accident caused by another person or entity. In such a difficult situation, it’s natural to wonder how long it may take to settle your personal injury case. Only when the case is resolved will you receive compensation for your losses.
When a case settles depends on many factors, as you’ll learn in the following article. If you want additional information, speak to a personal injury attorney today about your case’s details. The attorney won’t charge you for their time, so you have nothing to lose by talking to them.
What Is A Personal Injury Case Settlement?
A personal injury case settlement is a legal agreement between the plaintiff and defendant to resolve the case before trial. It usually means that you, the plaintiff, accept a certain amount of money from the defendant or their insurance company in exchange for ending the case.
The settlement is less than the full case value that might be obtained in a favorable jury verdict. But juries are unpredictable, and you don’t know if you’ll win. Most personal injury claims are resolved with a settlement. Only a small percentage of claims go to court and are decided by jury. Many plaintiffs need money sooner rather than later and prefer to get a sum now rather than wait for potentially more if they win. There is always a chance the jury will rule against you and leave you with nothing.
Your personal injury lawyer’s job is to advise you about the strength of your case and its value. They will recommend whether you should settle or go to trial, but the final decision is yours.
There Is No Exact Settlement Timeline
First, understand that every case is different, so there is no average or exact time to settle a personal injury claim. Some cases can settle in a few days, but many take weeks or months. The most complex injury cases with catastrophic injuries can take years between settlement talks and litigation. Your personal injury lawyer will strive to settle your case as soon as possible. However, sometimes, it is beneficial to wait to settle an injury claim until you have attained maximum medical improvement or MMI. Someone with a severe injury can take many months or even a year or two to reach MMI. Continue reading to learn about the factors influencing when and how a case settles.
Overview Of Personal Injury Claim Settlement Process
Getting a personal injury settlement after an accident involves several steps that take a varying amount of time. They are:
- Determining accident liability to know if you are eligible for compensation for your injuries.
- Assessing the type and degree of injuries and property damages.
- Gathering medical bills and other out-of-pocket expenses.
- Investigating what caused the accident and your injuries.
- Providing the insurance company with a detailed demand letter to the liable person’s insurance company for compensation.
- Negotiating a settlement amount that is fair to both sides.
In an ideal world, the injury claim settlement process is done in a reasonable time, such as a few weeks. Your personal injury attorney will do everything possible to speed up the process. However, many factors can extend how long the settlement takes:
- How long does the insurance adjuster takes to analyze the accident and injuries and review important documents.
- How long it takes to get your medical records from your medical team.
- How long it takes to collect case evidence, such as police reports and eyewitness statements.
- The number of injury victims and liable parties involved. Cases with many injury victims and responsible parties can extend the settlement timeline.
Factors That Can Increase The Settlement Timeline
The timeline to settle a personal injury case can vary widely. The claim can settle quickly for a minor accident, but a complex case can take much longer. Many factors may influence how long it takes to settle, including the ones detailed below. A personal injury lawyer can provide additional details.
Severity Of Injuries
A severe or catastrophic injury can complicate and extend settlement negotiations. The more money at stake, the more likely the insurance company will argue and attempt to limit the payout. Moreover, a serious injury may take months to achieve maximum medical improvement. You shouldn’t accept an insurance settlement until you have reached MMI. This allows you and your attorney to know if you will fully recover and what physical limitations you have, if any.
For example, if you have severe burns from a truck accident, it can take months or over a year for your burn injuries to heal and stabilize. Painful skin grafts may be needed. The healing and rehabilitation process will take a lot of time, and you won’t fully understand how much you will recover at first. You also don’t fully know what your medical expenses and needs will be in the future. It is best to wait until you have attained MMI before settling the case.
How Long Your Treatments Take
Suppose you were rear-ended in a car accident and need months of surgery. Your treatments and rehabilitation can take a year or more. When treatments are ongoing, your attorney will likely delay final settlement negotiations until medical intervention is complete.
How Much Pain And Suffering You Have
Sometimes, the biggest loss that a personal injury victim suffers is pain and suffering, as well as the loss of enjoyment of life. When you have a serious injury, you can have a lot of pain and suffering related to the injury and treatments. You also may have mental suffering and emotional anguish related to the injuries.
These losses are more difficult to calculate than lost income and medical expenses. The insurance company may undervalue your pain and suffering from a severe injury. Your attorney will attempt to get the most for your pain and suffering. This can lead to an extended negotiation process that extends the settlement timeline.
How Much Income You Lost
People with serious injuries usually have more lost income and may have difficulty earning a living in the future. These factors will increase the size of the settlement, so the insurance company may attempt to reduce the amount of compensation paid. This can extend the timeline of the settlement process.
How Difficult The Insurance Company Is
If the insurance company accepts liability quickly and offers a fair settlement, the process may only take a few weeks or up to two or three months. However, if the insurance provider questions liability or tries to pay less than you deserve, the case can take longer to settle. Insurance companies may also slow the process of specific claims to see if they can pressure you to take less money or just give up the case. Don’t do that. Let your personal injury lawyer handle the insurance company.
Whether Fault Is Contested
An accident where the fault is clear can lead to a shorter settlement time frame. For instance, if a driver runs a red light and runs you over in a crosswalk, the insurance company may accept liability quickly and pay the claim to avoid an expensive lawsuit. When their client is clearly at fault and reckless, the insurance company risks a bigger payout by having a jury hear the case.
If the fault is contested, it may take several insurance companies months to determine who was to blame and to what degree. Contested fault cases usually take much longer to settle.
These major factors will influence how long a personal injury settlement takes. Understandably, you want to get cash in hand as soon as possible. On the other hand, getting the most money for your losses may require patience. Your personal injury attorney will advise you on the settlement timeline and when it may be better to wait and continue negotiating for more compensation.
Understanding Your Personal Injury Settlement Compensation
After final settlement negotiations and compensation are determined, you must pay various fees and expenses before receiving your money. Don’t worry: The settlement funds will be sent to your attorney’s office first, who will deduct all necessary expenses before you are paid. Typical expenses that are deducted from personal injury settlements are:
- Attorney fees: Most personal injury attorneys are paid on a contingency fee basis. You don’t pay hourly or upfront fees for your attorney’s services. Your attorney’s fee is a percentage of the settlement you receive.
- Medical bills and liens: Medical liens are an important factor in how much money goes into your bank account. Many injury victims have severe injuries that require surgeries, hospital stays, and rehabilitation. If your medical care was paid for by Medicare, Medicaid, or a health insurance company, they usually have a right to be reimbursed for their services. Medical liens allow doctors and healthcare providers to be repaid for their services and expenses when a case is settled.
- Case-related costs: The attorney usually incurs various case-related expenses during the process. These may include fees for court filing, service of process, obtaining medical records, retaining expert witnesses, and deposition transcripts.
After your attorney pays these expenses, you will receive your personal injury settlement balance.
How Will Your Settlement Be Paid Out?
Your attorney and the insurance company agreed to a personal injury settlement. Now you wait to be paid. What happens? Structured settlements and lump-sum payments are the most common ways to pay claims. A structured settlement means you receive funds in installments over months or years. A lump-sum payment means you receive all the money simultaneously, minus legal expenses and fees.
Talk to your attorney and tax advisor about whether you take a structured settlement or lump-sum payment. Receiving all the money at once is convenient, but a structured settlement may provide more security and reduce tax liability.
Is A Personal Injury Settlement Taxable?
Usually, there are no state or federal tax obligations for personal injury settlements. So, you do not typically need to factor in the state or federal tax rate during the settlement negotiation process.
However, there are some exceptions. If you receive punitive damages in your settlement, they will be taxed. Punitive damages are a punishment for the liable party but are not always part of a personal injury settlement.
Did you receive pain and suffering compensation unrelated to a physical injury, such as for depression or anxiety? This compensation might be taxable, so speak to your attorney and tax advisor.
The settlement also could be taxable if you were in breach of a contract that caused your personal injuries. The breach of contract would have to be the basis of the lawsuit for your damages to be taxed.
Keep The Statute Of Limitations In Mind
Every state has a statute of limitations for personal injury lawsuits. This is the time you have to file a lawsuit after an injury. Many states have a two to four-year statute of limitations. As insurance settlement negotiations proceed, you should consider your state’s statute of limitations. If insurance settlement talks break down, you want enough time to file a lawsuit. Your personal injury attorney will monitor the state deadline for taking legal action as they negotiate with the insurance adjuster.
Speak To A Personal Injury Attorney Today
A serious accident with injuries can leave you out of work and deep in debt. Medical bills sit untouched on the kitchen table, and you don’t know when or how to pay them. When another person causes your injuries, you don’t have to pay for your damages yourself.
A car accident attorney can file a claim against the liable party. A successful claim or lawsuit may provide much-needed compensation for your medical bills and other expenses. Speak to an experienced personal injury attorney now for a free consultation. Remember that the personal injury attorney you hire is not compensated unless you win your case. So, you do not need to pay anything out of pocket for their services.
