How a Personal Injury Claim Works
Most injury claims move through the same rough sequence: medical care, investigation, demand, negotiation, and either settlement or a lawsuit. Most settle.
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The essentials
- Most claims move through: treatment, investigation, demand, negotiation, and either settlement or suit.
- Settling before reaching maximum medical improvement is often a mistake.
- The overwhelming majority of claims settle without trial.
- Filing a lawsuit doesn't mean a trial is coming — most filed cases still resolve in negotiation.
General U.S. background. State rules and individual facts can change the answer. Find your jurisdiction →
Stage 1 — Treatment and investigation
The claim starts, in a practical sense, when the injured person begins medical treatment and someone (often the injured person, often with the help of an attorney) begins gathering evidence: police reports, medical records, witness statements, photos. Investigation usually continues in parallel with treatment.
Stage 2 — Reaching maximum medical improvement
In most cases the claim doesn't get formally demanded until the injured person has either fully recovered or reached what doctors call 'maximum medical improvement' (MMI) — the point at which further treatment isn't expected to significantly change the outcome. Settling before MMI risks undervaluing the case if new problems appear later.
Stage 3 — Demand
Once medical treatment stabilizes, a demand package is usually sent to the at-fault party's insurer. It typically includes a summary of the facts, the medical records and bills, documentation of lost wages, and a demand for a specific dollar amount. The insurer responds with an offer, a counter, or a denial.
Stage 4 — Negotiation
Most claims settle in back-and-forth negotiation. Each side has a range. The injured person wants full value; the insurer wants to resolve the file for less than they think a jury might award. Negotiation can take weeks or months. If the offer reaches a number the injured person can accept, the case ends with a settlement and a written release.
Stage 5 — Lawsuit, if necessary
If negotiation fails — or if the statute of limitations is about to run — a lawsuit is filed. Filing doesn't mean trial. The vast majority of filed cases still settle, usually during discovery or at mediation. Trials happen in a small minority of cases, typically where fault or damages are strongly disputed.
Sources and review scope
This legacy reference article has not received a new claim-by-claim source or licensed-attorney review. Its content update date is not a legal verification date. Check current official sources for rules relevant to your claim. How we distinguish content dates and source checks.
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General information only. This page explains common concepts in plain language. It is not legal advice and does not create an attorney-client relationship. Laws vary by state and change over time. For any specific situation, consult a licensed attorney in your jurisdiction.