400 N Walker Ave #130, Oklahoma City, OK Phone: 405-605-2426
The process varies from firm to firm after a car accident demand letter is sent. Some firms seem to wait for the insurance adjuster to respond to the demand letter, while others “docket” a reminder for 30 days. The industry “standard” is to allow the adjuster 30 days to respond, but we believe this is excessive and start following up after 10 days.
Depending on the adjuster, they will usually make a few offers before presenting their “final pre-suit offer.” At this point, the client decides whether to file a lawsuit or settle the case. The attorney will provide guidance on whether the offer is reasonable, but ultimately, the decision to settle or file suit lies with the client. For instance, the attorney may advise that the case is worth more, but if the client prefers not to proceed with a lawsuit, they can choose to settle. Conversely, if the attorney believes the offer is fair, but the client wishes to file suit, they will proceed accordingly and file the lawsuit.
Once your personal injury lawyer has sent a demand letter to the insurance company, the following steps typically occur:
Insurance Company’s Response
The insurance company will review your demand letter and the evidence provided. In Oklahoma, insurance companies must acknowledge receipt of a claim within 30 days (36 O.S. § 1250.4). Their response to your demand letter may take longer based on your case’s complexity and the evidence provided. They may respond by:
- Accepting: The insurance company agrees to the demands outlined in the letter and offers to settle the claim for the amount requested.
- Countering: The insurance company proposes a lower settlement amount than what was demanded. This often leads to negotiations between your attorney and the insurance company.
- Denying: The insurance company denies liability for the accident or disagrees with the claimed damages. If the insurance company denies your claim, your lawyer will review their reasons and advise you on the best course of action, which may involve providing additional evidence, negotiating, or filing a lawsuit.
- Non-denial delay: Asking for more information.
Negotiation Process
If the insurance company makes a counteroffer, your lawyer will discuss it with you and provide advice on how to proceed. Your lawyer will then negotiate with the insurance adjuster to reach a fair settlement. This process can take several weeks to a few months.
Filing a Lawsuit
If a settlement cannot be reached through negotiation or mediation, your lawyer may recommend filing a lawsuit. In Oklahoma, the statute of limitations for most car accident cases is two years from the accident date (12 O.S. § 95). You must file a lawsuit within two years, or you may lose your right to seek compensation, with some exceptions.
Discovery Phase
Once a lawsuit is filed, the discovery phase begins. Both sides gather evidence, take depositions, and exchange relevant information, including interrogatories, requests for documents, and expert witness testimonies. The discovery phase can last several months to a year or more.
Mediation (Optional, But Usually Required)
If negotiations stall, your lawyer may suggest mediation, where a neutral third party (the mediator) helps facilitate a settlement agreement between you and the insurance company. The mediator helps both parties find common ground and reach a mutually acceptable resolution. Mediation can take a few hours to a full day.
Trial
If the case does not settle during discovery, it will proceed to trial. A trial can last from a day to several weeks. Your lawyer will prepare you for what to expect and represent you throughout the proceedings.
Appeal (If Applicable)
If either party is unsatisfied with the trial’s outcome, they may file an appeal. Your lawyer will advise you on whether an appeal is appropriate and the likelihood of success. The appeal process can take several months to a year or more.
How long does it typically take to settle for sending a demand letter?
The time to reach a settlement after sending a demand letter varies case by case. It can take anywhere from a few weeks to several months, depending on the insurance company’s response, the case’s complexity, and the negotiation process. If the case cannot be settled within 30 days, then the next step is to file the lawsuit.
What can I do to help expedite the process after the demand letter is sent?
To help expedite the process:
- Promptly provide your attorney with any requested information or documents
- Keep your attorney informed of updates on your medical treatment or condition
- Be responsive to your attorney’s communications and be available to discuss settlement offers
- Follow your attorney’s advice and trust their expertise
How can I stay informed about the progress of my case?
Your lawyer should keep you informed about your case’s progress and any significant developments. Ask your lawyer for regular updates and to explain any aspects of the process you don’t understand. Maintain open communication with your lawyer to ensure your case is handled effectively and efficiently. Our law firm, for example, has text messaging built into our case management software.
What happens if the insurance company denies my claim after receiving the demand letter?
If the insurance company denies your claim after receiving the demand letter, your lawyer will review their reasons and advise you on the best action, which may involve:
- Providing additional evidence: Your lawyer may gather and submit additional evidence to support your claim and counter the insurance company’s reasons for denial.
- Continuing negotiations: Your lawyer may continue to negotiate with the insurance company to reach a fair settlement, even after an initial denial.
- Filing a lawsuit: If the insurance company maintains its denial and a settlement cannot be reached, your lawyer may recommend filing a lawsuit to pursue compensation through the court system.
A denial from the insurance company is not the end of the road. Your lawyer will diligently protect your rights and seek the compensation you deserve.
How long do I have to file a lawsuit if a settlement cannot be reached?
In Oklahoma, the statute of limitations for most car accident cases is two years from the accident date (12 O.S. § 95). You must file a lawsuit within two years, or you lose your right to seek compensation. However, exceptions or factors could affect this timeline, such as:
- The discovery rule: In some cases, the statute of limitations may be extended if the injury or damage was not discovered until a later date.
- Government entities: If the at-fault party is a government entity, you may have a shorter time frame to file a claim or lawsuit.
- Minors: If the injured person is a minor, the statute of limitations may be extended until they reach the age of majority.
Consult your lawyer to understand the specific deadlines that apply to your case and to ensure your rights are protected.