How Do Personal Injury Settlements Work in California?

When pursuing a personal injury claim in California, understanding how settlements work can help you navigate the process and maximize your compensation. Here’s a breakdown of the key steps:

1. Initiating the Claim:
   • After an accident, you or your attorney will file a claim with the at-fault party’s insurance company. This claim includes details of the accident, your injuries, and the damages you’re seeking.
2. Gathering Evidence:
   • Evidence such as medical records, police reports, witness statements, and photos is crucial in supporting your case. Your lawyer will gather this information to build a strong claim and substantiate your losses.
3. Demand Letter and Negotiations:
   • Your attorney will send a demand letter to the insurance company, outlining the compensation amount for your medical bills, lost wages, pain and suffering, and any other damages. Negotiations typically begin after this letter is sent, with the insurer likely to make a counteroffer.
4. Evaluating Settlement Offers:
   • The insurance company may offer a lower amount than requested. Your lawyer will advise you on whether the offer is fair or if further negotiation is needed. In California, the settlement should cover both current and future expenses related to the injury.
5. Reaching a Settlement Agreement:
   • If both parties agree on an amount, the settlement is finalized. At this point, you’ll sign a release of liability, agreeing not to pursue further legal action for the same incident.
6. Receiving Compensation:
   • Once the settlement agreement is signed, you will receive compensation. Your attorney’s fees and any liens, such as outstanding medical bills, will be deducted, with the remainder going to you.
7. What If a Settlement Isn’t Reached?
   • If a fair settlement isn’t possible, your lawyer may recommend filing a lawsuit and taking the case to court. In California, most personal injury cases settle before trial, but having an attorney ready for litigation can strengthen your negotiating position.

Understanding the settlement process helps ensure you don’t settle for less than you deserve. Learn how they can support your personal injury claim in California.