Filing and being involved in a personal injury claim in New Jersey can be a long and complex process, especially when it comes to negotiating settlements. After your initial demand letter, you may receive a first settlement offer from the insurance company. However, it's common for this first offer to be much lower than what you deserve, prompting the need for continued negotiations. But how long does it take to receive a second settlement offer once you reject the first one?
This question doesn’t have a one-size-fits-all answer, as the time frame for receiving a second settlement offer can vary based on several factors. We discuss what influences the timeline, typical negotiation processes, and what to expect in New Jersey personal injury claims in the following blog article. We will also look at the legal regulations surrounding personal injury settlements in New Jersey to give you a better understanding of what could be delaying your case.
For more on this topic or if you are involved in a personal injury case yourself, please call the offices of Brandon J. Broderick, Attorney at Law for a free consultation with one of our New Jersey personal injury attorneys. We can evaluate your case and give you legal advice about your next steps.
Initial Settlement Offers: What to Expect
Once you’ve filed your personal injury claim in New Jersey, the insurance company will begin its investigation, during which time they may request medical records, accident reports, and other documentation. After the investigation, the insurer will typically respond with an initial settlement offer. However, in many cases, the first offer is significantly lower than what the claim is worth. This is often a strategy by insurers to gauge how much the claimant is willing to settle for.
If the initial offer is rejected, the negotiation process begins. You and your attorney will submit a counteroffer, requesting a fairer amount based on your injuries, medical bills, lost wages, and other damages. But how long should you expect to wait for a second offer?
Factors That Impact the Timeline for a Second Settlement Offer
- Complexity of the Case
- The more complex the case, the longer the insurance company may take to evaluate the counteroffer. Cases involving severe injuries, extensive medical care, or disputed liability may require additional review and expert opinions before the insurance company can issue a second offer.
- Insurance Company Tactics
- Insurance companies may intentionally delay their response to pressure you into accepting a lower offer. By prolonging the settlement process, they hope to exploit your need for compensation—especially if medical bills are piling up or you're unable to work.
- Back-and-Forth Negotiations
- Settlement negotiations are rarely linear. Both sides may go back and forth multiple times before agreeing on a final amount. Each round of negotiations can add weeks, if not months, to the process. Generally, after submitting a counteroffer, you can expect to wait a few weeks to hear back from the insurance company with their second settlement offer.
- Attorney Involvement
- Having an experienced personal injury attorney can expedite the negotiation process. Attorneys know how to apply pressure on insurance companies and ensure that settlement negotiations proceed in a timely manner. They may follow up with the insurer if they notice unreasonable delays.
- Insurance Company Policies and Procedures
- Each insurance company has its own internal policies and procedures when it comes to handling personal injury claims. Some companies are known to move more quickly, while others may have layers of bureaucratic red tape, slowing the process down. Familiarity with these companies, which an experienced attorney often has, can play a role in how long the settlement takes.
Typical Timeframe for a Second Settlement Offer in New Jersey
Although timelines can vary significantly, you can generally expect to wait 2 to 4 weeks after rejecting the first offer to receive a second one. However, if the insurance company is stalling or using delay tactics, it could take longer. If no offer is forthcoming after a reasonable amount of time, your attorney may need to take more assertive steps, such as filing a lawsuit, to push the insurer toward settlement negotiations.
New Jersey Personal Injury Regulations That May Affect Your Settlement Timeline
Statute of Limitations
In New Jersey, personal injury claims are subject to a two-year statute of limitations under NJSA 2A:14-2, meaning that you must file your claim within two years of the date of the injury. While this doesn’t directly impact how long it takes to get a second settlement offer, it is a critical time limit that could affect negotiations. Insurance companies are aware of this deadline, and in some cases, they may delay negotiations in hopes that you’ll run out of time to file a lawsuit.
Bad Faith Insurance Practices
In New Jersey, insurance companies are required to handle claims in good faith, meaning they must investigate and settle claims fairly and within a reasonable amount of time. If an insurance company is unnecessarily delaying your settlement offer, it may be engaging in bad faith practices, which can have legal consequences. New Jersey law allows claimants to sue for damages if they can prove that the insurance company acted in bad faith.
Steps You Can Take to Speed Up the Process
While some delays are unavoidable, there are steps you can take to prevent unnecessary hold-ups in receiving a second settlement offer:
- Ensure All Documentation Is Submitted: Make sure that your attorney has submitted all relevant medical records, accident reports, and other documents the insurer needs to evaluate your claim. Missing or incomplete information can lead to delays.
- Stay in Communication: Regularly follow up with your attorney to stay updated on the status of your case. Your attorney should be in communication with the insurance company to make sure that your case remains a priority.
- Consider Filing a Lawsuit: If negotiations stall, filing a lawsuit can put pressure on the insurance company to take the claim more seriously. Often, the mere act of filing can accelerate the negotiation process and lead to a second settlement offer.
Call Brandon J. Broderick For Legal Help
Navigating New Jersey personal injury claims can be challenging. Fortunately, you don't need to do it alone. The experienced personal injury lawyers at Brandon J. Broderick, Attorney at Law, are available 24/7 to help you understand your legal options, gather necessary evidence, and build a strong case to secure the settlement you deserve.
Contact us now for a free legal review.