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Kentucky Car Accident Settlement Process: What to Expect After a Wreck

If you’ve been injured in a car accident, one of the first questions you probably have is:

“How long does the settlement process take?”

The Kentucky car accident settlement process follows a fairly predictable timeline, but injury attorneys don’t always explain what’s happening behind the scenes. This is why I like to personally meet with my clients at the beginning of the injury claim and explain the process to them. I think it is important that they understand the “gameplan” for successfully prosecuting their personal injury claim. That’s just another component of the Desmond Difference!

Below is a clear, step-by-step explanation of what happens after a wreck and how a personal injury claim typically moves toward settlement.

Step 1: Getting Emergency Room Records and Bills

After a car accident, I, Attorney Jim Desmond, immediately request your ER records and bills. This is a crucial step that I think all law firms should do quickly, as soon as your injury claim is opened. Why? Because if you have a $30,000 Emergency Room bill and the other driver was only insured for $25,000, a good injury lawyer will be screaming to the other insurance company, “Pay your policy limits!” AND I will be looking for underinsured motorist coverage on your own automobile insurance policy to cover the remaining value of your personal injury claim. Under Kentucky law, injury victims are entitled to one free copy of their medical records, including emergency room records and billing statements. This allows us to:

Document your injuries early;
Confirm diagnoses and treatment;
Begin building your claim without delay.

However, this is also why I don’t request the records from your treating doctors until your treatment is completed. I don’t want a bunch of case costs to be lessening your net personal injury settlement.

Step 2: Completing Medical Treatment

You don’t want an insurance company to evaluate a claim until they understand the full extent of your injuries. After all, when you sign a personal injury release, you are signing a contract, and the terms of that contract are “No matter what happens tomorrow, you cannot recover anything further!” Therefore, you don’t want to settle a personal injury claim from a car wreck until you are fully healed.

That means we typically wait until:

You are released from care, or
Your doctors have outlined future treatment

Once that happens, we request all remaining medical records and bills, including:

Hospital records
Follow-up physician visits
Physical therapy or chiropractic care
Specialist treatment

Step 3: Confirming PIP and Health Insurance Payments

Kentucky is a no-fault state, which means PIP (Personal Injury Protection) usually pays the first portion of medical bills. Health insurance may pay additional amounts.

Before making a settlement demand, we must determine:

How much PIP paid
How much health insurance paid
Whether any liens or reimbursement claims exist that will have to be paid out of your injury settlement

This step is essential. Failing to account for these payments can delay a settlement. Moreover, we don’t want an insurance company, e.g., your health insurance, to be knocking on your door after an injury settlement claiming you owe them money because of your injury settlement.

Step 4: Preparing the Settlement Demand Package

Once all medical records and billing information are received, I prepare a settlement demand package.

A demand package typically includes:

A detailed demand letter explaining liability and the treatment you received
Medical records and bills are attached as supporting documents
Proof of lost wages (if applicable)
A description of pain, suffering, and how the injuries affected your daily life
Photographs of the damaged car to illustrate the severity of the impact and
Photographs of any bruises, contusions, or lacerations that were the result of the car accident

This package tells your story and explains why the insurance company should fairly evaluate the value of your injury claim. Yes, in a demand letter, I will include a figure indicating the value of your personal injury claim.

Step 5: Insurance Company Review (Usually About 45 Days)

After the insurance company receives the demand, they usually take about 45 days to:

Review the records
Evaluate the claim
Make an initial settlement offer

This timeline is common in Kentucky car accident claims, though some cases move faster and others take longer, depending on complexity.

Step 6: Negotiation and Settlement

The first offer is rarely the best.

At that point, we:

Review the offer together
Negotiate for what we believe is a fair value of your personal injury claim
Discuss whether settlement or continued negotiation makes sense, or whether we should be looking at litigation

No settlement offer is accepted without your approval. Your injury attorney can recommend a settlement to you and advise you as to the value of your injury claim. However, ultimately, that is the extent of our role, i.e., to advise our clients. We don’t control the decisions made by our clients, but rather, while always acting in their best interests, we advise them as to what we think their best course of action would be.

How Long Does a Car Accident Settlement Take in Kentucky?

Every case is different, but most Kentucky personal injury settlements take several months from the end of treatment to resolution. Serious injuries, disputed liability, or multiple insurance policies can extend the timeline. I tell my clients that most of the time, their cases will settle six to eight months from the date of the wreck. However, that is not carved in stone and depends upon a lot of factors. That’s why I prefer to discuss that question directly with my clients when I sign them up.

The Desmond Difference

The settlement process doesn’t have to be confusing or stressful.

When you hire me:

You work directly with your attorney
You receive clear updates and honest advice
You can reach me by cell phone — even nights and weekends

If you’ve been injured in a car or motorcycle accident in Kentucky and have questions about the settlement process, help is available.

Frequently Asked Questions About Kentucky Car Accident Settlements

How long does a car accident settlement take in Kentucky?

I tell my clients that most cases resolve six to eight months after the date of the car accident. Most Kentucky car accident settlements take several months after medical treatment ends. I usually allow 30 days for getting the records in, 15 days for doing a settlement demand, and 45 days for the insurance company to evaluate the claim, once the demand package is received.

Why can’t a settlement be made before treatment is finished?

If you sign a personal injury release and you go blind the next day because of injuries sustained in the car wreck, you are out of luck. That’s why you don’t want to quickly resolve your personal injury claim, assuming there is plenty of insurance out there to cover the full value of your injury claim. Also, Insurance companies need to understand the full extent of injuries before evaluating a claim. Settling too early can result in being underpaid, especially if future treatment is needed.

What is a settlement demand letter?

A settlement demand letter is a detailed explanation sent to the insurance company outlining:

How the crash happened
Why their insured is at fault, i.e., negligent
The injuries suffered
Evidence of medical bills, lost wages, photographs, and a description of the pain and suffering to support your personal injury claim.

It includes supporting medical records and billing documentation.

What role does PIP play in a Kentucky car accident claim?

Kentucky is a no-fault state, meaning PIP coverage pays the first $10,000 of your medical bills regardless of fault. These payments must be accounted for before final settlement negotiations. However, you can reserve your PIP coverage. In fact, if you were in a serious car wreck, this is always my first recommendation because it may allow us to use both your PIP insurance and health insurance to pay the medical bills stemming from a car accident in Kentucky. I talk about this elsewhere on the site; it is a lot easier to explain if you reach me directly on my cell phone at 502-609-7657. Yes, you will talk directly to me, Attorney Jim Desmond.

Will I have to accept the insurance company’s first offer?

No. The first offer is usually a starting point. All offers are reviewed with you, and no settlement is accepted without your approval.

If you have questions about your specific case, you don’t have to guess.

Clients work directly with me — not a case manager — and I’m available by cell phone when questions come up.

Why a $100,000 Insurance Offer Doesn’t Mean Justice Has Been Served

Understanding Policy Limits, the Coots Procedure, and Underinsured Motorist Claims in Kentucky

One of the most common misunderstandings I see in serious injury claims arising from car accidents is this:

“If the other driver’s insurance offers their policy limits, doesn’t that mean they’re off the hook?”

The short answer is no—and in many cases, accepting that offer is only step one, not the end of the road.

Let me explain how this works in plain English.

The Reality of Insurance Limits in Kentucky

Kentucky law does not require drivers to carry enough insurance to fully compensate someone they seriously injure.

In fact:

The minimum required liability coverage in Kentucky is $25,000 per person
Many drivers carry $50,000 or $100,000, but no more
There is no law requiring them to have coverage sufficient to pay:
- Medical bills
- Lost wages
- Pain and suffering
- Long-term or permanent injuries

So, when an insurance company offers its policy limits, it doesn’t mean your claim is worth only that amount, but rather,

That is the most money available from that insurance policy.

Why Suing the At-Fault Driver Personally, beyond their insurance coverage, is typically Not Worth It!

Clients often ask:

“Why don’t we just sue the driver for more?”

Here’s the hard truth:
Most people do not have collectible assets beyond their insurance. You can spend years in litigation, win a judgment, and still collect nothing, while incurring litigation expenses that can decrease your overall recovery.

That’s why Kentucky law provides for underinsured motorist coverage.

The Coots Procedure (KRS 304.39-320)

Kentucky allows injured people to pursue underinsured motorist (UIM) benefits from their own insurance company when the at-fault driver doesn’t have enough coverage.

But there’s a required step first, known as the Coots procedure.

Here’s what it does:

Preserves your right to pursue UIM benefits
Prevents your insurance company from claiming you “gave up” their rights
Allows the at-fault insurer’s policy limits to be accepted without killing the case

In simple terms:

We notify your insurance company of the settlement offer and give them the chance to protect their interests before we accept it. Once that’s done, the focus shifts to your underinsured motorist claim; essentially, by pursuing your underinsured motorist claim, you have switched the risk that the at-fault driver has no assets to collect beyond his insurance coverage to your own insurance company. On Coots, know that the steps for a proper Coots procedure are outlined in KRS 304.39-320, and they need to be followed to the letter, or you may lose your right to recover underinsured motorist benefits.

How Medical Bills and Health Insurance Really Work

Another big concern clients have is getting their medical bills paid, especially when surgery is involved.

Here’s how it typically plays out:

Health insurance pays the medical providers, not you
Health insurance then asserts a lien against the settlement
Those liens are often negotiated down
- Example: a $65,000 hospital bill may be satisfied for $20,000 (because of the contract that health insurance has with the hospital)
We can also pursue Personal Injury Protection (PIP) benefits (up to $10,000 in Kentucky) to further reduce what comes out of the settlement

The goal is simple:

Reduce medical liens so more money ends up in the client’s pocket.

Why a Policy Limits Offer Can Be a Good Thing

It may not feel like it at first, but when the at-fault insurer offers their full limits, it supports the arguments that:

The injuries exceed available liability coverage
The injury claim from the car accident qualifies for underinsured motorist benefits
Additional compensation is owed under the client’s own automobile insurance policy

The Big Picture: What This Means for the Injured Client

Every case is different, but the objective is always the same:

Pay medical bills through no-fault and health insurance
Reduce liens, which means more money in a client’s net personal injury settlement
Preserve all available claims, including those against a client’s own automobile insurance

A policy limit does not mean the insurance company “wins.”
It often means the case is just entering its most important phase, i.e., the first stages of actually resolving the injury claim.

Final Thought

Insurance companies love it when people think:

“That’s all there is.”

Kentucky law says otherwise.

If you’ve been seriously injured and the other driver’s insurance “maxes out,” that doesn’t end your claim—it opens the door to the next one.

And that’s where having an attorney who understands procedures like Coots and underinsured motorist claims makes all the difference. That’s why you can always reach me on my cell phone, 502-609-7657. Wishing you safe travels, but if things go wrong, you know how to reach me.

All the best!

Attorney Jim Desmond

502-609-7657

Recent legal advice given to a driver who was at-fault for the car wreck

So, this is the problem. If you were at fault for the wreck, and it appears you were, then you can’t recover on the claim for pain and suffering. It is not the kind of case I would handle but, this is what you need to do.

First, call your own insurance company and if you have collision coverage on your car, use it. You will have to pay your deductible but since your car is a total loss, they will owe you fair market value for the car. If you don’t have collision coverage on the car, you are pretty much out of luck as there is no one to recover the value of the car from; since you appear to be at fault for the wreck. The other driver’s insurance will only pay for the damage to your vehicle, or the claim for pain and suffering, if you can show that their driver was at fault for the wreck. Since you can’t do that, in this instance, you don’t have a way of recovering for the damage to your car unless you had collision coverage, commonly known as full coverage, on that car through your own insurance company.

Second, the no-fault part of Kentucky law refers to the fact that your own automobile insurance company is responsible for the first $10,000 of your medical bills. So yes, if you are hurting from the car wreck, you can open a no-fault claim with your own car insurance company, and they will pay for your medical treatment. The no-fault coverage can also cover your lost wages too but only up to $200 a week and if a doctor takes you off work.