A personal injury claim seeks payment for harm caused by someone else's carelessness or wrongdoing. Most claims are settled through negotiation rather than decided by a jury.
What you generally must show
- The other party owed you a duty of care, such as driving safely.
- They breached that duty by acting carelessly.
- The breach caused your injury.
- You suffered real losses, such as medical bills or lost income.
What compensation can include
Economic damages cover measurable losses like medical expenses, lost wages and repair costs. Non-economic damages cover pain, suffering and reduced quality of life. In rare cases of reckless conduct, punitive damages may be available. Some states cap certain categories of damages.
The usual path
- Treatment and documentation of injuries.
- A demand letter to the insurer outlining the claim and the amount sought.
- Negotiation, often over several rounds.
- Filing a lawsuit if talks fail, which must happen before the deadline.
- Settlement or trial. The great majority of cases settle.
Shared fault
If you were partly at fault, many states reduce your recovery by your share of the blame. A few states bar recovery if you were more than half at fault, and a small number bar it if you were even slightly at fault. The rule depends on the state.
Frequently asked questions
How long does a claim take?
Simple claims may settle in a few months. Serious injuries often take longer because a person should reach maximum medical improvement before settling.
Are settlements taxable?
Compensation for physical injuries is generally not taxable, but some portions, such as punitive damages, can be. Ask a tax professional.