A settlement is a check an insurance company gives you to pay for your injuries and losses after an accident, such as a car accident.
By accepting the check, you agree to end the lawsuit and relinquish your right to hold the defendant further liable for the same accident or injury.
Although each case is unique, most follow similar timelines. These timelines can give you an idea of what to expect from your situation.
However, any factors unique to your case can impact how long it will take to get a settlement after you send your demand letter.
The sooner you send your demand letter, the sooner you can initiate the insurance claims process.
The demand letter is the initial letter you or your lawyer send to the insurance company in charge of your claim.
It is the first attempt to resolve a dispute by requesting a specific amount of money to settle the case.
A lawyer can help you draft a succinct and effective demand letter that accurately estimates the value of your claim.
If you are reading this, you are probably wondering, How long does it take to get a settlement after a demand letter is sent? There are state laws in place to increase the efficiency of the insurance system and demand letter response time.
These laws include deadlines all insurance companies in Texas must comply with when handling and responding to submitted claims. In Texas, an insurance company must acknowledge a claim within 15 days of its receipt.
This means you will receive an initial letter or email from the insurance company stating that it received your claim or demand letter within two weeks.
Then, the insurance company has the right to request information, documentation and evidence from you to inform its investigation.
You and your attorney can submit all the necessary paperwork together to make sure you don’t miss anything important.
Then, the insurance company has 15 days from the date it receives all of the necessary paperwork to decide whether to accept or reject the claim.
Once an insurance company decides to accept a claim and offer financial benefits, it must mail a settlement check within five business days.
Thus, for the most part, an insurance company in Texas must pay out a claim it accepts within 35 days. However, this timeline can be extended if the insurance company needs more time to conduct its investigation.
In this case, the insurance company may request 45 days to investigate, if it has sufficient grounds to do so, pushing out the personal injury demand letter response time.
There is no set timeline that applies to every insurance claim; it varies on a case-by-case basis. Some claims are paid out within one to three months, while others take six months or longer to resolve.
Other cases can take years if they have to go to trial. Factors that can make a settlement take longer include:
The length of time it takes for your insurance claim to settle depends on many different factors that are unique to your case.
It may be possible to speed up your timeline, however, with help from a personal injury lawyer in Dallas.
The settlement negotiation process starts when you file your claim with the other party’s insurance company.
After that, it can take weeks or months of discussion before both parties agree on a settlement number. The length of time a settlement takes usually depends on how complicated your case is.
If, after multiple rounds of negotiations, you and the insurance company have not reached an agreement, your attorney might suggest filing a lawsuit.
Filing a lawsuit may prompt the insurer to finally offer a satisfactory settlement. Unfortunately, if the insurance company does not make an offer and opts instead to go to trial, you will likely have to wait longer for a settlement.
This is because trial dates are often set for six to eight months after parties file a complaint. Keep in mind that even if you file a lawsuit, you can still settle before the trial starts.
Generally, you can expect to receive a settlement check three to six weeks after you sign a settlement release.
If you are working with a lawyer, once you sign the release, the insurance company will process it and issue your lawyer a check.
After your lawyer receives the check, they will deposit it into an escrow account. Once the settlement check clears, your lawyer will use it to pay any money you owe.
For example, a payment might be made to your health insurance company if they paid for medical treatments related to the accident.
After your lawyer pays those expenses, they will deduct their fees based on what you agreed to in the contract you signed when you hired them.
Your lawyer may also deduct other costs, like court and expert witness fees. Once all fees and costs are paid, your lawyer will write you a check and send it to your address, at which time you will be free to deposit it in your bank account.
A personal injury lawyer has all the tools, resources and experience to make your insurance claim proceed as quickly and efficiently as possible.
Your lawyer could shorten your timeline by communicating with the insurance company on your behalf. This will prevent common mistakes, such as missing information on the paperwork.
Your lawyer will also ensure that you do not rush into a fast settlement that devalues your injuries and losses.
Hiring a lawyer can shorten a settlement timeline while protecting your legal rights.
If you suffered a personal injury because of someone else’s negligence, the Law Firm of Aaron A. Herbert, P.C. can help you fight for the compensation you deserve.
Our experienced personal injury team is not afraid to go to court to pursue your maximum compensation and will use aggressive legal strategies to protect your rights.
We offer one-on-one attention and will take the time to get to know you and the details of your unique case.
Contact us today by phone or online to schedule a free case evaluation.