Insurance settlement timeline: what actually happens month by month, and where most cases stall.

Month 1: Notice, investigation, and coverage

• Day 1–7. Notify both insurers in writing. NAIC's Unfair Claims Settlement Practices Act model, adopted in most states, requires acknowledgment of the claim within 10–15 days.
• Day 7–30. Insurer assigns an adjuster, requests the police report, takes recorded statements (you are not required to give one to the at-fault insurer), and inspects vehicle damage. Coverage decision (accept or deny liability) typically lands within 30–40 days under the same act.
• Property damage moves in parallel and almost always resolves before the bodily injury claim, often within 30–60 days.

Months 2–6: Treatment phase

Nothing of valuation substance happens during active treatment. The insurer is monitoring; you are healing. The worst mistake at this stage is settling early. A release closes future treatment permanently, and most soft-tissue cases that look like 8 weeks of PT turn into 4 months with persistent symptoms.

What to do during treatment:

• Keep every appointment. Gaps over 30 days are read as recovery.
• Tell your doctor about every symptom every visit. Notes drive value.
• Track mileage, prescriptions, over-the-counter purchases, lost wages.
• Do not post physical activity on social media that contradicts your reported limitations.

Month 6–9: MMI and demand

Maximum Medical Improvement (MMI) is the inflection point. Your treating physician confirms you have plateaued or further improvement is unlikely. Now records and bills are ordered, future care is estimated, and the demand package goes out. A complete demand package contains:

1. Cover letter framing liability, injuries, treatment, and damages.
2. Police report and scene photos.
3. All medical records and itemized bills.
4. Lost wage documentation (employer letter, pay stubs, tax returns if self-employed).
5. Future medical estimate from the treating physician if applicable.
6. A specific demand figure with a 30-day response deadline.

Month 7–12: Negotiation

Two or three rounds is typical. The first counter is almost always low. A reasonable settlement usually emerges in the second or third round. If the gap remains wide after the third round, suit is the next move.

Month 12–24: Litigation, if needed

• Filing through service: 30–60 days.
• Pleadings and answer: 30–90 days.
• Written discovery: 3–6 months.
• Depositions: 3–6 months.
• Mediation: typically attempted 9–14 months after filing.
• Trial: 18–36 months after filing in most jurisdictions; longer in busy urban courts.

Most filed cases still settle before trial, but the deadline machinery, depositions, and the cost of defense usually create the leverage that pre-suit negotiation lacked.

The clocks that actually bind insurers

Where most cases stall

• Records collection. Hospitals routinely take 30–60 days; some sleep-test or imaging vendors longer.
• Adjuster turnover. Files reassign every few months; the new adjuster reads from zero.
• Liability investigations. Disputed fault adds 60–120 days.
• Lien resolution. Medicare, Medicaid, ERISA, and hospital liens must be negotiated before disbursement, often the slowest step in an otherwise resolved case.