Detailed Answer — What to expect after you send a demand
After you submit a demand package to an insurer in Michigan, there is no one-size-fits-all clock that guarantees when you will get an initial offer. Timing depends on the type of claim (first-party No-Fault/PIP vs. third-party liability), the completeness of your demand, the insurer’s investigation needs, and whether medical records or billing must be reviewed. Below is a practical explanation of typical timelines, what drives them, and applicable Michigan law you should know.
Typical timeline stages
- Acknowledgment (1–7 business days): Most insurers will at least acknowledge receipt quickly — often within a few days — either by mail, email, or phone. If you do not get an acknowledgment within a week, follow up.
- Initial file review and triage (7–21 days): The insurer opens a file, assigns an adjuster, and reviews the demand and basic documentation. If records are missing, they may request additional information before making an offer.
- Investigation and valuation (2–8 weeks): The adjuster orders and reviews medical records, bills, wage documentation, police reports, and any liability evidence. For straightforward liability and well-documented damages, the insurer may respond toward the earlier end of this range. If records are extensive or liability is disputed, valuation commonly takes longer.
- Initial response or offer (2–12+ weeks): A simple, well-documented demand may produce a quick initial offer in 2–4 weeks. More complicated claims or cases with liability questions can take several months before an insurer makes any monetary offer. In some injury claims, insurers make a low initial offer quickly as an opening negotiation position.
- When you should expect delays (8+ weeks): Complex medical cases, large damages, multiple insurers, unresolved liability, or missing documentation can extend the timeline. Litigation readiness, independent medical exams (IMEs), or retained experts can add more weeks or months.
Michigan-specific rules that matter
For first-party No-Fault (PIP) benefits, Michigan’s No-Fault Act includes rules about claim handling and payment. Those provisions affect how quickly an insurer must pay benefits once liability and proof are established; see MCL 500.3142 and MCL 500.3148 for statutory language and possible interest/penalties for late payment: MCL 500.3142 and MCL 500.3148. For consumer questions or to file a complaint about claim handling, Michigan’s Department of Insurance and Financial Services (DIFS) has guidance: Michigan DIFS.
What speeds up a reasonable initial offer
- Send a complete demand package: clear summary of facts, medical records, itemized bills, wage-loss proof, and a specific dollar demand with supporting calculations.
- Include liability evidence (photos, police reports, witness statements) if you want an insurer to consider quick settlement on liability.
- Be responsive to adjuster requests for missing documents or authorizations.
- Limit open medical treatment at the time of demand or explain expected future medical care to narrow valuation disputes.
When a slow or no response can be a problem
If an insurer fails to respond for an unreasonable time, options include following up in writing, escalating to a supervisor, filing a DIFS complaint, or talking with an attorney about next steps. For PIP benefits, the No-Fault Act provides procedures and potential penalties for unreasonable delays; consult the text of MCL 500.3142 and MCL 500.3148 and the DIFS consumer pages for specifics.
Practical examples (hypothetical)
- Simple soft-tissue crash with 2–3 weeks of records and limited medical bills: insurer may respond in 2–4 weeks with an initial offer.
- Moderate injury with three providers, ongoing treatment, and disputed liability: expect 6–12 weeks before a meaningful offer, often after additional records review or an IME.
- Serious injury with surgery, long-term care, and contested fault: months of negotiation; many claims like this either go to mediation or litigation if parties cannot agree.
Helpful Hints
- Keep a demand packet checklist: chronology, medical records, itemized bills, lost-wage proof, photos, and a clear settlement figure with how you calculated it.
- Set a follow-up schedule: send a polite status email if you haven’t heard in 10 business days; escalate after 3–4 weeks.
- Document all communications: dates, names, and what was said. This helps if you later allege unreasonable delay.
- Consider a well-crafted demand letter rather than a short note — clarity speeds review.
- For PIP denials or late payments, review MCL 500.3142 and MCL 500.3148 and consider contacting DIFS: https://www.michigan.gov/difs.
- If the insurer’s first offer is unsatisfactory, counter with a written explanation and any new supporting documents; insurers often revise offers during exchange.
- If the file stalls and the claim is valuable, consult a Michigan attorney early to preserve rights and evaluate whether demand, mediation, or litigation is appropriate.
Disclaimer: This information is educational and general in nature and does not constitute legal advice. It is not a substitute for consulting a licensed Michigan attorney about your specific situation.