If you are the victim of another person's negligence, you may want to pursue monetary damages from the at-fault party. The word "settlement" is sometimes raised when it comes to getting compensated for your injuries and damages, but what is really meant by this term? Most personal injury victims settle their claims outside of court, so read on to learn more about settlements and what to expect

Settling outside of court

A settlement offer from the at-fault party relieves both sides (your side and the at-fault driver's side) of the necessity of spending a great deal of both time and money to litigate a claim in court. Offers can come at any time, but the other side must first learn of your intention to sue and your damages. This is accomplished with an important piece of correspondence known as the demand letter.

The demand letter

A good demand letter has prompted many a settlement offer, so the skillful crafting of this letter is of utmost importance. At this point in the personal injury process, no suit has been officially filed, but the demand letter unmistakably lets the other side know that a suit is in the offing if the "demands" are not meet. What goes into a good demand letter?

• A summary of your damages, including a dollar amount of your medical expenses (so far)—this dollar amount plays a major role in your settlement calculation.
• A projection of any future medical expenses, which is especially important if you suspect that you might end up having a permanent injury.
• Why the other party is at fault—even if you suspect you may be partially at fault, leave that issue for the settlement negotiation stage where fault will eventually be determined by percentage of all parties involved.
• A summary of evidence to prove your claim, such as witness testimony, a video of the accident, the police and/or accident report, and photographs.
• Finally, and most importantly, the total dollar amount you are demanding to be paid to prevent you from filing suit.

What you may be entitled to collect.

1. Payment for all related medical expenses.
2. Repair or replacement of the vehicle and any personal property.
3. Lost wages, including time spent using your sick and vacation pay.
4. Pain and suffering, which is the way the accident has impacted you and your family.

Once your adversary is in possession of the demand letter, the negotiations can begin. Be sure to contact a personal injury attorney for assistance in ensuring that you are compensated in a fair and complete manner.