When you’ve been injured due to someone else’s negligence, one of the most important steps in your personal injury claim is the demand letter. It’s a formal communication that outlines your damages and requests compensation. But once it’s sent, one common question arises: How long until I get a settlement?
The answer varies based on several factors, including the complexity of your case, the insurance company’s response, and whether further negotiations are necessary. In this blog, we’ll walk you through what happens after a demand letter is sent and provide insight into what influences the settlement timeline.
What Is a Demand Letter?
A demand letter is a key document in the claims process. It details:
- The facts of the accident
- The injuries and losses sustained
- The legal basis for the claim
- A specific amount of compensation requested
It serves as the formal starting point of settlement negotiations between the injured party and the at-fault party’s insurance company.
What Happens After the Demand Letter Is Sent?
Once the demand letter is received by the insurance company, several things happen:
- Review Period: The insurance adjuster or legal team will review the letter in detail. This includes verifying medical records, checking liability, and evaluating the amount requested.
- Internal Investigation: The insurer may conduct its own investigation to corroborate your claims.
- Response: After review, the insurance company typically issues one of the following:
- A settlement offer (which may be lower than requested)
- A denial of the claim
- A request for more information or clarification
- A settlement offer (which may be lower than requested)
This process usually takes 30 to 45 days, but that’s only a baseline. The timeline can vary greatly.
Factors That Affect the Timeline After a Demand Letter
Several variables influence how quickly you might receive a settlement:
1. Complexity of the Case
If your case involves multiple parties, disputed liability, or severe injuries, the review process could take longer.
2. Quality and Completeness of Documentation
If your demand letter includes thorough and well-organized documentation,such as medical bills, police reports, and lost wage verification,it can help speed up the insurer’s review.
3. The Insurance Company’s Internal Policies
Some insurance companies are known to respond quickly, while others may have a backlog of cases or deliberately delay claims to pressure you into settling for less.
4. Negotiations
Rarely does the first offer match the amount in the demand letter. Negotiations can go back and forth several times, adding weeks or months to the process.
5. Whether a Lawsuit Is Filed
If negotiations stall or the offer is far below what’s reasonable, you might need to consider litigation. Filing a lawsuit can extend the timeline significantly, sometimes to a year or more.
Should You Accept the First Offer?
In most cases, the first offer from the insurance company is not the best. It may be significantly lower than what you requested in your demand letter. Accepting an early offer could result in getting less compensation than you deserve.
It’s crucial to evaluate:
- The full extent of your medical bills (current and future)
- Lost income and impact on your ability to work
- Pain and suffering
- Ongoing care or therapy
Tip: Do not rush into accepting a settlement just because time has passed. A little patience can lead to a far more favorable outcome.
When Should You Follow Up on a Demand Letter?
If you haven’t received a response after 30 days, it’s reasonable to follow up. Insurance companies are not required to respond by a specific deadline, but keeping communication open and persistent shows you’re serious.
Follow-up communications should be professional and document all prior exchanges. If they continue to delay, consider involving legal representation.
Can a Demand Letter Be Ignored by the Insurance Company?
Technically, yes. An insurance company is not legally obligated to respond to a demand letter, though most do. If they ignore your demand or delay beyond reason, the next step may involve:
- Filing a complaint with the state insurance commission
- Initiating a personal injury lawsuit
What If You’re Not Happy With the Offer?
If the offer doesn’t match your losses or seems unfair, you have options:
- Make a counteroffer
- Continue negotiations with more evidence
- File a lawsuit if needed
It’s crucial to be strategic during negotiations. A calm, calculated approach,supported by strong documentation,often leads to a better result.
How Long Does It Take to Get Paid After Settlement?
Once both sides agree to a settlement, the insurance company typically sends the payment within 7 to 21 days. However, the final receipt of funds depends on:
- Processing time at the law firm
- Clearing checks or direct deposit
- Medical or lien payments being deducted
In some cases, it may take up to 4 weeks for the check to arrive in your account.
Why Having Legal Guidance Helps
The personal injury claims process can be overwhelming. Between medical recovery, paperwork, and negotiating with insurance companies, it’s easy to feel lost.
While you can pursue a claim on your own, having legal support can help:
- Ensure all documents and evidence are properly submitted
- Navigate delays and negotiation tactics by insurers
- Provide guidance if a lawsuit becomes necessary
Your goal is to secure fair compensation,not just a fast check. Taking the right steps after a demand letter can make a significant difference in the outcome.
Take the Next Step Toward Fair Compensation
If you’ve sent a demand letter and are unsure what comes next, don’t navigate it alone. At Ted Law Firm, we help injury victims understand their rights and push for timely, fair settlements. We proudly represent clients in Charleston, Greenville, Columbia, Myrtle Beach, and Atlanta advocating for individuals and families throughout South Carolina and Georgia. We’re dedicated to delivering trusted legal guidance when it matters most. During life’s most challenging moments, you can rely on Ted Law Firm to stand by your side.
