How a Personal Injury Claim Works

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.

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.

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.

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.

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.