Every five seconds, a car crash happens somewhere in the U.S., according to the National Highway Traffic Safety Administration. These aren’t all minor fender-benders: In 2022, 5.2 million people were injured severely enough that they needed medical attention. But almost all car accident claims are settled out of court, and few claimants are represented by lawyers. And while accidents occur in the blink of an eye, the settlement process can be complicated and lengthy.
How Long Does a Car Accident Settlement Take?
The reality is that there is no specific answer. The length of time depends on a number of factors, from the facts of the case to relevant state law and more.
For minor accidents that only consist of property damages and no claims of physical injury, the claim is usually limited to the vehicle damage and the cost of a rental car. Those claims may be resolved in days or weeks.
By contrast, settlement of more complicated cases, especially those involving severe personal injury claims, may take months or even years — even if the insurer has already paid out a related property claim.
“Every attorney knows that everybody wants it done as quickly as it can be,” says John Cooper of Cooper Hurley Injury Lawyers, a Virginia law firm that specializes in litigating personal injury cases relating to car crashes.
However, while a plaintiff may hope for a faster resolution, that isn’t necessarily to their advantage.
It may take time to determine the impact of catastrophic injuries. Therefore, Cooper attorneys usually hold off on settling a personal injury claim until after their client has received necessary treatment, and then they wait to see how the client has recovered. This may add six months to a year to the process, Cooper says. But waiting to see how a client recovers is far better than accepting a settlement before the client realizes that crash-related back pain will permanently limit his ability to work.
“You talk to the client about how they are doing, then if the treatment is done, it’s ripe for settlement, and let’s get it done,” Cooper says.
[What Does Hiring a Lawyer Cost?]
Car Accident Process: Step-by-Step
Since every state has different laws relating to auto accident settlements, there is no hard-and-fast set of procedures and timelines that apply to every case. However, some common steps may be helpful to keep in mind.
1. In an emergency, call 911 for first responders (paramedics, police) and receive any necessary emergency care.
2. Exchange driver’s license, car and insurance information with the involved drivers.
3. Collect onsite evidence of the accident. As long as it’s safe, collect names and contact information of any witnesses; take photographs and notes about the vehicles and any relevant conditions such as weather or road construction.
4. Report the accident to your insurer.
5. If necessary, file a police report. In most states, drivers must file a report if anyone sustained any injury (even a minor one) or if there was property damage in excess of a specified dollar amount.
6. See a medical provider to determine if additional treatment is needed, and don’t tough it out. Discuss any pains or other concerns after the accident. “Getting proper medical care that first day and first week is critical for building a successful medical claim,” Cooper says.
7. Consult an attorney. It is the job of the insurance agency to settle your claim as quickly as possible without involving attorneys. This may not be in your best interest as an accident victim. Instead, consult with a local attorney who is an expert in personal injury law and car accident cases. Attorneys often give a free initial consultation, and attorneys specializing in personal injury cases usually take a case on contingency, meaning they get paid a percentage of a settlement or trial victory rather than hourly fees. And they know the technical requirements and legal arguments to help you receive the receive the largest settlement possible based on your unique circumstances and injuries.
8. The parties investigate the accident, interviewing the drivers, passengers and witnesses, and collecting police reports and other evidence. Insurers (or attorneys) will inspect the car’s damage and review copies of medical information, other receipts and statements.
9. Negotiate with the insurer or third party for compensation. Depending on the case’s facts, compensation may include money to cover vehicle damage/repair; a rental car; medical bills and related expenses; in-home care; and lost wages. According to Cooper, negotiations can take at least two weeks and even months for a bigger case.
10. If the financial terms of a proposed settlement are agreeable, accept by signing contracts and releasing the insurer, insured and third parties of future liability.
11. Receive settlement payment.
Factors That Can Affect the Auto Accident Settlement Timeline
State law is the first factor that can impact a settlement, by establishing a mandatory calendar for insurance settlements. For example, Florida has a compressed timeline for claim adjudication: A driver’s insurer has 14 days to send proof of claim forms, 30 days to accept or deny a claim and just 20 days to pay an accepted claim.
Likewise, in California, state law sets out a schedule: An insurer must reply to a Californian-insured driver within 15 days of filing a claim and in no more than 15 days when replying to any subsequent communication. Then, the insurer must accept or deny a claim within 40 days after receiving proof of the claim, and the offer must reflect a fair settlement. If the insured party accepts the claim, then the insurer must pay them within 30 days of the date of settlement.
The car crash settlement process can take much longer if the accident involves catastrophic injuries or a fatality. Just getting the medical records needed as evidence is a time-consuming process, Cooper says.
Settlements may be delayed if there are issues with insurance coverage or other complicating factors.
And insurance companies will always delay, Cooper says.
Settlement vs. Trial for Auto Accidents
Only an estimated 3% to 5% of those involved in a car crash will file lawsuits and go to trial.
In Virginia, plaintiffs can file cases in general district courts for claims up to $50,000. Opting for litigation in one of those courts, or another state’s small claims court, can speed up car crash litigation. Otherwise, waiting for a full trial in civil court can again add months more to the process.
But even those in court usually end up settling before a jury makes its decision, Cooper says.
[READ: How to Report a Traffic Accident to the Police]
Statutes of Limitations for Auto Accidents
Anyone with a potential claim relating to an auto accident should be aware of the relevant statute of limitations, a law that defines the timeframe within which any lawsuit may be filed. While states generally have a two- to four-year timeframe, there are differences between jurisdictions: In Louisiana, lawsuits may be time-barred after one year, while in Rhode Island, a claimant may have 10 years to file suit for a property claim.
What Are the Next Steps After a Traffic Accident?
If you’re concerned about protecting your rights and obtaining adequate compensation for your losses, then consider reaching out to a qualified attorney near you today.
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Car Accident Settlement Process and Timeline originally appeared on usnews.com
