How Long Does a Car Accident Settlement Take?

Personal injury claims in car accident cases typically get settled within a few months to over a year. Every injury claim is unique so the specific time to settle will depend largely on the facts of each case. Generally, the more complex a claim is, the longer it will take to reach a car accident settlement.

Further, the following factors usually contribute to a longer settlement time:

complicated and confusing evidence,
victims suffering severe injuries that require extensive medical care and treatment, and
multiple liable parties.

In contrast, the following factors usually lead to quicker settlement times:

simple facts that clearly show liability,
mild injuries, and
insurers responding quickly to claimant inquiries.

Note, too, that the help of a car accident lawyer will generally produce a quicker settlement time. A lawyer’s help also usually translates in larger payouts.

Claimants often ask as to the amount of a fair settlement offer. While fairness is largely driven by the facts of each case, fair auto accident settlements will compensate injury victims for all of the following:

medical expenses,
lost wages,
lost earning capacity,
property damage,
out-of-pocket expenses (for example, if a car needs work at a repair shop), and
pain and suffering.

Our California car accident attorneys will highlight the following in this article:

Personal injury claims in car accident cases typically settle within a few months to over a year.

1. What is the approximate amount of time to settle an auto accident insurance claim?

Shortly following a car accident (usually within 24 hours), an injured party should file a car accident claim with the insurance company of the at-fault driver/negligent driver.

Once a claim is filed, it usually takes a few months for the injury victim and the insurance adjuster to agree on a settlement offer. In cases involving serious injuries and complex facts, it may take over a year to reach a settlement agreement.

Note that there are two parts to the claim/settlement process that play a large role in affecting the time it takes to settle a claim.

The first involves medical treatment/medical records. Settlement negotiations typically cannot take place until the accident victim has completed his/her medical treatment or reached Maximum Medical Improvement (MMI). Injury victims reach MMI when their primary doctors decide their medical condition is stable and will not improve with further treatment.¹

Cases, then, will take longer to settle if they involve serious injuries where a victim requires an extensive amount of medical treatment.

The second part of the claim process that affects settlement time involves demand letters. A demand letter is a document that an injury victim, or his/her personal injury attorney, sends to the insurance company. The letter represents an attempt to settle the claim and sets forth what the claimant believes is a reasonable settlement amount.

While some insurers will respond quickly to the letter, others may sit on it for months. Therefore, a key action that affects settlement time is how quickly an insurer will respond to a demand letter.

2. What are some other factors that affect how soon/long a case can settle?

In general, the following factors will help produce a quicker settlement time:

straightforward facts,
clear liability on one party,
victims suffering mild injuries,
insurers responding quickly to insurance claimants,
simple and clear evidence that proves fault, and
the assistance of personal injury lawyers.

In contrast, the following factors typically result in longer settlement times:

complex facts and evidence,
multiple liable parties,
severe injuries that require extensive medical treatment,
insurers proving difficult to work with or engaging in delay tactics, and
the absence of a car crash attorney.

A skilled auto accident attorney is better situated to spot the tactics aggressive car insurance companies use and stand up to them.

3. Can car accident victims settle personal injury claims without the help of a lawyer?

It is generally recommended that crash victims seek the help of a skilled personal injury lawyer when trying to negotiate and settle personal injury cases.

Sometimes a claimant may successfully engage in settlement negotiations without a lawyer if there are mild injuries with low damages.

However, the bulk of auto accident claims will settle for more with the help of a skilled attorney.

Note that many claim adjusters engage in certain tactics to help reduce claim payouts. For example, they may delay in responding to inquiries or offer quick lowball settlement offers.

Auto accident lawyers are better situated to spot these tactics and stand up to aggressive car insurance companies. In turn, they can help you get the maximum value of your case.

4. What is a fair settlement amount?

The amount of a “fair settlement” will largely depend on the facts of a case.

In general, though, any settlement should compensate a victim for the following:

medical bills,
lost wages,
lost earning capacity,
property damage,
out-of-pocket expenses, and
pain and suffering.

Settlements are typically not “fair” if an insurer purposefully leaves out payment for one or more of these categories of damages.

Further, settlements are very rarely fair if an adjuster tries to coerce or pressure a claimant into accepting the settlement offer.

Note that once a claimant finally settles a case, it may take up to six to eight weeks for the party to receive his/her settlement check. This is because the injury victim has to sign a release form (in which the claimant gives up his/her right to sue the at-fault party). It takes some time for the insurer to process the form and then issue the settlement proceeds.

5. How can a car accident lawyer help?

Auto accident lawyers play a huge role in helping clients handle car accident claims.

For example, they help ensure that injury victims file their claim on time. They can also help victims seek out immediate medical attention and manage their ongoing medical care in cases involving serious injuries.

A lawyer also helps clients gather evidence to discover all liable parties. If necessary, they can appoint experts to help explain this evidence to a claims adjuster.

Further, car crash attorneys can negotiate a claim on a client’s behalf. In doing so, they can spot and deny lowball offers and settle a case for what it is truly worth.

Finally, if the insurance company denies a claim, a personal injury lawyer can file a car accident lawsuit against the party that was responsible for causing the accident.

For additional help…

Call us for help

If you or a loved one was injured in an auto accident, we invite you to contact our law firm at the Shouse Law Group. Our attorneys provide both free consultations and legal advice you can trust.

We know how insurance companies operate and we work tirelessly to get you the maximum compensation available for your case.

Legal References:

Note that claims generally cannot settle prior to MMI or the completion of treatment because victims will not know the true extent of their damages.