Depending on different factors, a car accident settlement can take as little as a few weeks and as long as several years. Because the process involves filing, waiting for responses, negotiating, renegotiating, and potential court action, there is no standardized timeline for waiting.
At Berry Law, we’ve learned a thing or two about the factors that affect how long an auto accident settlement process goes on for. Though each case is unique, here are some general things to consider when estimating how long the process will take.
If you or loved one has been involved in an auto accident, consult with a knowledgeable car accident lawyer near you for legal guidance.
What Is a Settlement in a Car Accident?
A car accident settlement is an agreement between parties seeking to resolve their dispute without trial. It is usually monetary compensation paid by one party or their insurance company to the other for the damages and injuries caused by the accident.
Unlike lawsuits, settlements are usually negotiated and agreed upon outside the courtroom. Both parties can negotiate terms that work for both sides, potentially avoiding the time-consuming and costly process of going to trial.
Though auto accident settlements are achievable without the help of a personal attorney, the timeline to achieve this settlement may be elongated due to the intricacies of the legal process.
Additionally, there is no guarantee that the insurance company will offer enough to cover the damages and injuries sustained in the accident. This is where an experienced car accident attorney can help get appropriate compensation to cover medical bills, lost wages, pain, and suffering.
Factors That Affect a Car Accident Settlement Timeline
Filing Date
Most people file a claim with insurance companies within 30 days of an auto accident. However, those involved in minor fender benders may wait until the other party’s insurance company contacts them. If this happens, the negotiation process may be delayed, affecting how long it takes to settle.
Contacting car accident attorneys immediately after an accident increases the likelihood of receiving a settlement offer sooner rather than later. Personal injury lawyers are familiar with the legal process and can move quickly to gather evidence, speak with witnesses, and negotiate with insurance companies for a comprehensive settlement that covers medical bills, lost wages, and other non-economic damages.
The Complexity of the Case
The complexity of a car accident case also impacts the settlement timeline. For example, claims involving multiple parties, insurance companies, or varying degrees of liability mean more paperwork, negotiations, and, ultimately, more processing time.
Additionally, if there are disputes over the extent of injuries or damages sustained, it may take longer to reach an agreement. Moreover, in cases where the at-fault party denies responsibility or the insurance company refuses to offer a car accident settlement covering all expenses resulting from the crash, the case may go to trial, further prolonging the settlement timeline.
Severity of Injuries
The severity of injuries sustained in a car accident can significantly affects the timeline for reaching a settlement. If an individual has suffered severe or life-changing injuries that require ongoing medical treatment and rehabilitation, it may take longer to settle, as all future expenses must be considered before an offer is made.
In contrast, if the injuries are minor and require only a short period of medical treatment, a settlement may be reached more quickly. However, even seemingly minor injuries can have long-term effects, so injured parties should take additional measures to verify all physical traumas when negotiating a settlement.
Working with a personal injury lawyer who has successfully handled similar cases ensures that the full extent of injuries and expenses are considered in the settlement negotiation process.
What Can I Do to Make the Settlement Process Go Faster?
Hire a car accident lawyer.
Hiring legal representation with an excellent track record of handling car accident cases is one of the best steps to expedite the settlement process. They are proficient in negotiating with insurance companies and advocating for a reasonable settlement.
Ideal qualities to look for in an auto accident attorney include the following:
- Extensive knowledge of personal injury law and car accident claims
- Proven success in negotiating favorable settlements for their clients
- Willingness to take the case to court if necessary
- 24/7 availability to provide legal advice and answer any questions or concerns
Additionally, it is wise to choose a lawyer with multiple ways to contact their office. Auto accidents make it challenging to talk on the phone, let alone get out of bed, so a personal injury attorney available via online chat or contact form makes the process easier for claimants.
Gather All Necessary Documentation
Favorable settlements in car accidents are backed up by solid evidence. Moreover, having all of this evidence organized and readily available can significantly expedite the settlement process.
Some documentation that may be necessary includes the following:
- Police report from the accident
- Medical records and bills related to injuries sustained in the accident
- Proof of any other expenses incurred, such as car repairs or rental fees
- Witness statements or contact information
In addition to medical documents and official reports, it is essential to keep a pain journal or diary to document any physical and emotional changes experienced as a result of the accident. This can serve as valuable evidence of the accident’s impact on mental and physical well-being, critical metrics for assessing non-economic damages should the case go to court.
Having this documentation ready helps legal counsel understand the full extent of damages and negotiate a settlement that matches current and future injuries.
Avoid Speaking to Insurance Companies
Outside of filing the initial claim, it is best to avoid talking to insurance companies without the guidance of an attorney. Insurance adjusters are trained to minimize payouts and may try to get injured parties to make statements that can be used against them.
Some of the ways insurance companies apply these shady tactics include the following:
- Pressuring injured parties to accept a quick settlement offer that may not fully cover all expenses and damages.
- Asking leading questions or manipulating statements made by the injured party in order to shift blame or downplay the severity of injuries.
- Deliberately delaying the claims process in hopes of exhausting the patience of the injured party, leading them to accept a lower settlement out of frustration.
These tactics often come up short when injured parties enlist the help of a car accident attorney who is well-versed in dealing with insurance companies. From handling communication to negotiating ideal compensation terms, an attorney can level the playing field and ensure that the injured party’s rights are protected throughout the claims process.
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How Long Does a Car Accident Settlement Take? A Timeline of Events
Auto accident investigation and medical treatment. Length of time to process: Immediate to several years.
Right after a car accident, it is essential to seek medical treatment for any injuries sustained. This ensures proper care for the injured party and creates a record of injuries and treatments for use in a settlement negotiation or court case. Remember to seek continuing treatment as injuries such as whiplash, concussions, and soft tissue damage may not be immediately apparent.
Collecting evidence and filing an insurance claim. Length of time to process: 1 to 8 weeks.
If possible, collect evidence at the scene of the accident. If not, be sure to get the information of all involved parties and witnesses, as well as photos, police reports, and medical records. Soon after, file an auto insurance claim with the appropriate provider(s) depending on established faulty or liability.
Negotiation with insurance company. Length of time to process: 4 to 8 weeks.
Once the insurance claim is filed, the insurance company will conduct an investigation and may make a settlement offer. This is where having a car accident attorney is beneficial as they can negotiate on a claimant’s behalf to procure the best compensation agreement AND ensure a tighter turnaround time considering claimants may otherwise be burdened with healing from the accident.
Initial settlement offer provided. Length of time to process: Immediate to several years.
After all the evidence is collected and negotiations are made, a settlement offer is sent to claimants or their legal representatives. Depending on the case’s complexity, this may happen as soon as four weeks after the accident or take several months. If the offer is acceptable, the claimant may accept it, and payment processing will begin. If not, further negotiations or legal action may be necessary.
Be aware that further legal actions, while time-consuming, may help secure additional compensation for damages. Legal proceedings, such as filing a lawsuit or going to mediation, can take 6 months to several years to resolve. While injured parties heal from the physical and emotional toll of the auto accident, personal injury lawyers can assist in managing the legal aspects and working towards a favorable resolution.
Funds issued into escrow account. Length of time to process: 1 to 2 weeks.
Once all parties agree upon a settlement, the insurance company will typically issue a check or wire funds into an escrow account. This process can take anywhere from 1 to 2 weeks, depending on the specific procedures of the insurance company and financial institution.
Claimants should be aware that even after a settlement is reached and funds are issued, additional steps may still be involved in receiving compensation. For example, if the settlement includes reimbursement for medical expenses, the insurance company may require itemized bills and receipts from healthcare providers before releasing those funds.
Funds clear and are distributed. Length of time to process: 1 to 2 weeks.
After all the boxes are checked and requirements are met, the funds will finally be distributed to the claimant. This process typically takes another 1 to 2 weeks for the funds to clear and become available for use immediately.
What Is Included in a Car Accident Settlement?
One of the reasons a car accident settlement takes time is because all potential compensation for damages needs careful consideration. Factors included in car accident settlement compensation include but are not limited to the following:
- Medical expenses. In-patient hospitalization costs from a car accident average $57,000, not including additional expenses for ongoing treatment, medical devices, paramedic care, diagnostic tests, and ER visits. Considering these extra costs, the average cost of a car accident could be hundreds of thousands or millions of dollars.
- Lost wages. Car accidents causing injuries that disrupt or impede someone’s ability to work may seem settlements include compensation for lost wages, including current and future earnings. With the average US salary being $59,000 a year, lost wages from a car could affect family, credit scores, hireability, and more.
- Pain and suffering. This is subjective and varies based on the individual’s experience. Some factors that may be taken into consideration when determining pain and suffering compensation include physical discomfort, emotional distress, loss of enjoyment of life, and any lasting effects of the accident.
Some or all of these damages may be included in a settlement or awarded by a court, depending on the specifics of the case. It’s essential to have a personal injury lawyer who can accurately assess and advocate for all potential damages in a car accident case.
A Car Accident Settlement Can Take Time. Be Ready, Organized, and Patient
No two car accidents are the same, and the time it takes to settle with insurance companies or litigate in court varies greatly. However, with the help of an auto accident lawyer and proper documentation, the process can be more efficient, ensuring injured parties and their families aren’t burdened by the financial and emotional toll.
Contact Berry Law to learn more about how long a car accident settlement can take. Our team of experienced and dedicated personal injury lawyers can help navigate the complexities of a car accident case and fight for compensation that covers everything needed to get life back to normal.
