Most personal injury cases are resolved through settlement negotiations, not a trial. Understanding how negotiations work can help protect your claim and ensure you pursue fair compensation for your injuries.
The Negotiation and Settlement Process
Settlement in a personal injury case requires negotiation. To initiate a settlement, either party to the case may make an offer. The party that receives the settlement offer may then either accept or deny it. Often, a party that receives a settlement offer makes a counteroffer. In the majority of personal injury cases, negotiations begin with a demand letter from the injured party’s attorney. A demand letter in a personal injury case often includes the following:
- An overview of the facts of the case
- An overview of the applicable laws in the case
- A description of the injuries suffered by the victim
- A description of the damages caused by the defendant
- A proposed settlement amount
- Copies of proof of the victim’s damages
- Copies of the victim’s medical records
Although many personal injury cases begin with a demand letter, insurance companies sometimes make settlement offers first—particularly when an injury victim isn’t represented by an attorney. Unfortunately, an initial offer from an insurance company is often far lower than the victim’s actual damages in the case. Therefore, it is advisable to never accept a settlement offer from an insurance company without first consulting an experienced personal injury attorney.
