Over 6 million car accidents happen yearly in the U.S. If you've ever been involved in one, you would know it can be emotionally, physically, and financially exhausting to deal with.
This is where insurance companies – yours or the other drivers – should come in and economically compensate you with a settlement. However, the process of getting that check could also be lengthy and frustrating. Why? Let's find out.
But first, what’s a typical car accident settlement waiting period?
Generally, a car accident settlement should take 2 to 6 months. However, in extreme cases on either end of the spectrum, a settlement could take about a month when all the facts are clear and straightforward or as long as 3-4 years in extremely complex situations where litigation is required. Even with complex accidents, settlements may take only a few months, depending on some factors we'll discuss later.
Before getting into what could affect the time of your car accident settlement, let's consider an ideal process. Because if you have yet to follow these steps, it could cause a delay. But if you have, this will help you understand what stage of the process you are in and how long you might have to wait.
You can begin to ensure a quick settlement immediately after the accident happens. So, what should you ideally do?
You should first report the incident to local law enforcement after the accident if you can. You should also wait on the scene to provide relevant information and request a copy of the police report to help your claim later. After informing local law enforcement, you should file a report with the Department of Motor Vehicles (DMV) for every accident resulting in injury or death – no matter what state you’re in.
When the accident only results in property damage, different states have different requirements that determine if you need to report to the DMV or the Department of Transportation. For instance:
Many states allow an insurance agent or a representative to report on your behalf, but ensure you’re familiar with your state’s reporting requirements. And even if you are not required to report by state law, your insurance policy may demand it. So, if you have any doubts, it is still best to contact your local DMV.
Reporting the accident as soon as possible strengthens your claim and prevents the other driver from presenting a version that makes you seem liable.
While at the crash scene, you must collect and record as much information as possible about the crash. Information you should try to collect immediately includes pictures or videos of the accident site; photos of the damage to your car and the other car(s); pictures of your injuries if you have any; names and numbers or addresses of witnesses; and the insurance information of the other driver(s). All of this must be done without admitting any fault.
This step is crucial because your potential settlement amount may be affected by your perceived complicity in the accident. Complicity is judged by negligence, and different states have different negligence laws that will affect your settlement. The applicable negligence laws in the U.S. are:
Therefore, having a good record of the accident from your perspective is necessary to make a strong case for yourself. Without your point of view to consider, a decision that doesn’t favor you becomes more likely. Subsequently, you should also keep information like medical records, medication lists, treatment receipts, and proof of lost income caused by the accident.
Informing your insurance company and the insurance company of the other driver(s) as soon as possible is also essential. Keep in mind that informing is not the same as making a claim. At this point, you should focus on giving them information about the accident and the injuries you believe you have sustained. Also, let them know you'll likely make a claim eventually.
The sooner you hire a reputable and experienced attorney, the better. They can help you with vital issues that will affect the success of your claim. After reviewing the evidence, an attorney will advise you on whether to claim against your coverage or the other driver's insurance, depending on state law and the circumstances. Some attorneys may also help you make the reports you are required to.
Making a claim without an attorney's help is possible, but having a skilled motor vehicle accident attorney significantly increases your chances of getting a (good) and quick settlement.
With the help of your attorney, you should then send a demand letter or a formal claim establishing the facts to the relevant insurance company. The letter or claim should also spell out what you’re requesting, and why, and attach proof. Your grounds for settlement could be lost wages, property damages, medical expenses, emotional distress, etc. States like Georgia under GA Code § 51-12-1 provide legal grounds to base a claim.
If you have sustained any injuries from the accident, your lawyer will likely ask you to wait until you have reached maximum medical improvement (MMI) before making a claim. MMI is a point where your post-injury condition cannot be further improved, and getting to this point is necessary to estimate how the accident has caused permanent injuries or loss of earning capacity. However, when the insurance policy has a time limit for claims to be made, it may be better to make a timely claim.
To ensure good faith dealings, states often make laws that guide the conduct of insurance companies during this process. For instance, in Illinois, 215 Ill. Comp. Stat. §5/143.23a provides that insurance companies must supply claim forms within 15 working days of requesting them.
After submitting your claim, the insurance company will investigate. Their investigation will involve reviewing all the evidence you’ve submitted, then having a claim adjuster examine the accident site, talk to witnesses, and discuss any property you claim has been damaged.
The claim adjuster will then recommend a course of action to the insurer, which will determine whether they accept or deny your claim. Often, the insurance company will offer you a low and quick settlement, which is less than what you’re entitled to, so you should not sign anything from the insurance company without your lawyer.
If your claim is denied, you can appeal it; if you receive a lowball offer, you can negotiate a better one. Most insurance firms have arbitration or mediation processes to ensure both parties are happy with the final settlement
The investigation and negotiation process can take between three weeks and four months.
If you cannot settle with the company, your lawyer may suggest you institute a court action. Most parties prefer to avoid going to court, so this is very rare. But if you go, you can sue your insurer for denying your claim or offering you less than you’re entitled to. Meanwhile, if you’re out to hold the other driver responsible, you can sue them or their insurance company if their insurance company has acted in bad faith.
Note that all states have statutes of limitation on instituting court actions. This means state laws mandate that if you are going to sue, you must do it before a specific time. In Texas, for instance, under Tex. Civ. Prac. & Rem. Code §16.003, any personal injury claim must be brought within two years from the accident date. On the other hand, Michigan, through the Mich. Comp. Laws § 600.5805 allows a three-year window to institute your lawsuit.
The time required for a car accident settlement varies from case to case. It is also usually affected by some factors. They are:
We mentioned earlier that reaching MMI before officially making a claim or agreeing to a settlement is always best practice. This is because once you agree to a settlement, it is final. And if you find out, at that point, that you have sustained injuries that were previously non-evident, you will not be able to bring another claim. In some cases, MMI may be reached within weeks. Other times, it could take months.
Getting evidence in the form of bills and records can sometimes be a hassle. It is helpful for your claim to have well-documented evidence of the money you've spent or the money you've lost. However, many medical facilities have dedicated record departments with tedious record retrieval processes.
States have two types of insurance laws regarding car accidents: at-fault or no-fault. These laws could significantly affect how long your settlement takes.
In at-fault states, the party deemed responsible for an accident by investigators will be responsible for all claims from everyone affected by the accident. They will be personally liable if the claims exceed the at-fault driver’s coverage.
Settlements in at-fault states could take longer because investigators will review all the evidence to determine who is at fault. As you can imagine, determining fault for some complex accidents could be time-consuming.
Thirty-seven states currently use at-fault laws, and they are:
Meanwhile, in no-fault states, drivers rely on their insurance if they are involved in an accident – whether they were at fault or not. To ensure every driver is protected, no-fault states require them to purchase Personal Injury Protection (PIP) coverage to cover medical fees and wage loss for themselves and their passengers. However, the at-fault driver will still be liable for property damage in no-fault states.
Settlements in no-fault states are typically faster, at least for medical and wage loss claims, because investigators do not need to ascertain blame before claims can be approved.
Today, The District of Columbia and nine states operate a pure no-fault system. The states are:
Three states allow drivers to choose between a pure no-fault policy or an at-fault policy. They are:
Some states allow drivers to add PIP coverage to their policy. This means that even though the at-fault driver will be liable, they can choose to claim with their insurance companies to cover their medical expenses and wage loss. Usually, when drivers opt to argue against their PIP coverage in these states, they lose the ability to recover damages on those same grounds from the at-fault driver. States that allow add-on PIPs are:
In Delaware (under Del. Code tit. 21 § 2118) and Oregon (under Or. Rev. Stat. § 742.520 ), drivers are required to get PIP coverage even though those are at-fault states.
The more parties involved in a car accident, the longer it'll take to settle. Investigating many claims automatically takes longer, and accidents with multiple parties are often complex. Different parties, including other insurance companies and lawyers, will also have various demands.
If the insurance company has any reason to dispute your claim, the settlement process will take more time.
If you feel like your car accident settlement is not progressing, the easiest way to change that is to get a car accident attorney if you still need one. Insurance companies are more likely to take your claims seriously if you have an attorney because attorneys will see through delay tactics and might even sue them. If you already have an attorney, other ways to ensure progress are:
The sooner you can respond to demands from the insurance company and its investigators, the sooner you get your settlement. So, maintain good communication with the company and your lawyer.
To move your settlement along, ensure you have all the evidence and information you need. You must have taken all the steps we pointed out while discussing the settlement process. Even if you cannot do them when you ought to, you must still try whenever you can.
Once you have done all you must without seeing any progress over an extended period, you should consider getting a different lawyer. When selecting a new lawyer, go for one who has considerable experience.
As we have established, getting the best possible settlement takes some time, and factors beyond anyone's control could further lengthen the process. But once you've done all you're supposed to and you still feel it’s taking too long, do contact us, The Accident Helpers. It won’t cost you a dime, and we’ll gladly help.