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How Long Does a Settlement Take After a Demand Letter is Sent?

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Posted By DAM Firm | January 27 2021 | Personal Injury

Any person who sustains an injury caused by the careless or negligent actions of another individual, company, or entity deserves to receive compensation for what happened to. However, securing compensation can be complicated, particularly when dealing with aggressive insurance carriers. Even though most injury claims are resolved through a settlement with insurance carriers, it can take some time to receive compensation after a demand letter is sent. Here, we want to discuss what you can expect both before and after you send a demand letter to an insurance carrier.

What is a demand letter?

A demand letter is a letter that you or your attorney will send to an insurance carrier to request that they pay the compensation they owe. If you have suffered from an injury in California caused by the actions of another individual, business, or entity, then you are likely entitled to compensation. This could include coverage of your:

  • Medical bills
  • Lost wages
  • Out-of-pocket expenses
  • Property damage losses
  • Pain and suffering damages
  • Loss of enjoyment of life damages
  • …and more

Unfortunately, insurance carriers and at-fault parties often put up a fight in order to keep from paying out a settlement in a claim. When they fail to offer a fair compensation amount, a demand letter will typically be sent in an effort to recover the correct amount.

How long after a demand letter is sent before you receive the compensation?

After a demand letter has been sent to the insurance carrier, the exact response time will vary depending on the specific factors related to each particular case. Injury victims can expect to have an answer from the carrier within a few weeks, but this process can take several months.

There are various factors that could delay a demand letter response from the insurance carrier, and some of the issues may have nothing at all to do with the letter itself. The insurance adjuster may be dealing with many cases at once, which means you will not receive a speedy response.

Additionally, the insurance claims adjuster may be spending more time reviewing your case and the evidence they have received. Insurance carriers will usually conduct their own investigation into each case, especially if the claim is for a fairly high dollar amount.

Even when the insurance carrier responds, there is no guarantee that they will respond favorably. There are a few ways a demand letter response may play out:

  • They may agree to the demand letter amount and pay the claim.
  • They may respond with a lower counter-offer.
  • They may deny the claim altogether.

What if the other party refuses to pay?

If the insurance carrier refuses to pay a fair amount or even denies a claim after the demand letter is sent, then it may be necessary for the injury victim to file a personal injury lawsuit against the alleged negligent party. This will push the case into the civil court system and will inevitably extend the total amount of time it takes to receive a settlement or be awarded compensation through a favorable jury verdict.

It is strongly recommended that you work with a skilled Orange County personal injury lawyer for help with your case, especially if you receive any pushback or trouble from the insurance carrier.

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