After a car accident, truck accident or some other kind of personal injury, most people assume that the liable party’s insurance company will quickly “step up” and make a fair settlement offer.
In reality, personal injury settlement negotiations are often lengthy. Understanding how settlement negotiations typically work can help reduce uncertainty during the claims process. While every case is different, most personal injury negotiations follow a series of common steps before a settlement is reached or a lawsuit proceeds toward trial.
It starts with an investigation and demand phase
Before serious settlement discussions begin, both sides usually investigate the accident and review the available evidence. This stage may involve gathering:
- Medical records
- Accident reports
- Witness statements
- Photographs and video evidence
- Employment and wage information
- Insurance policy details
As an injury victim’s medical condition stabilizes, their personal injury attorney will likely send a formal demand letter to the insurance company. The demand generally outlines the facts of the case, the injuries they’ve suffered, their medical expenses, lost income and the amount they are requesting to settle the claim.
The insurance company usually responds with a minimal offer
The demand letter usually produces little in the way of results. Insurers typically respond with initial settlement offers that are frequently much lower than what was requested. Insurance adjusters usually argue that:
- The injuries aren’t as serious as claimed
- Some of the medical treatments were unnecessary
- A preexisting condition actually caused many symptoms
- The injury victim was partially at fault for their own losses
Because Indiana follows a modified comparative fault system, allegations that an injured person contributed to the accident can significantly affect the negotiations. If a person is found more than 50% responsible for their own losses, they are barred from recovering damages altogether.
The negotiations may continue for months
Once the initial demand and offer have been exchanged, negotiations begin in earnest. Multiple offers and counteroffers may be traded while additional evidence in the form of medical reports and expert weigh-ins, surveillance video, depositions and more. The court may order formal mediation sessions and then a trial date may be scheduled.
Ultimately, the vast majority of claims will be settled before trial, with each step bringing a clearer understanding of the strengths and weaknesses of each side’s position. If the parties do agree to settle, that will end the case. If they don’t, the case will proceed to trial before a judge or jury.
Because insurance companies frequently attempt to minimize payouts, dispute liability or challenge the extent of a person’s injuries, it is wise to involve a personal injury attorney as soon as possible.
