How Long Does a Car Accident Settlement Take?

A car accident settlement is a legal agreement between two or more parties involved in a collision. It includes the injured party (plaintiff) and the at-fault driver’s insurance company (defendant). The process begins when one party files a claim. Both parties will investigate the car accident, determine liability, and calculate the damages.

Then, the settlement negotiations follow, where both sides try to agree on the compensation amount. The injured party receives a lump sum payment once the two parties reach a settlement. In exchange, they typically agree not to pursue further damages from the at-fault party.

While this might seem straightforward, the car accident settlement process is complex. There may be disputes over liability and the settlement amount. Further litigation may also be required before a final agreement can be reached.

The distinction between at-fault and no-fault systems varies by state. An at-fault settlement occurs within the tort-based system. Establishing liability is the central component of the settlement process.

No-fault settlements, on the other hand, provide quick compensation for injuries, regardless of who was at fault. Under this system, each driver’s Personal Injury Protection (PIP) coverage would cover medical expenses, lost wages, and other related costs.

PIP is typically required in no-fault states but is an optional add-on in all other states.

Reaching a settlement can take a few months to a few years. However, you can speed up the process by getting immediate medical attention after a car accident. It’s also important to keep detailed records of your medical treatments, lost wages, and any other damages you accrue. 

Below, you’ll find the key factors that influence the car accident settlement timeline.

The severity of your injury

If you sustained severe injuries, it may take time for a doctor to fully assess the extent of your injuries and their long-term consequences. This includes diagnosing fractures, internal injuries, traumatic brain injuries (TBIs), and soft tissue injuries. Comprehensive evaluations often require multiple medical appointments, imaging studies (e.g., MRIs, CT scans), and expert consultations.

The recovery timeline for severe injuries can be lengthy. They can sometimes span months or even years. During this time, you may undergo surgeries, physical therapy, rehabilitation, and ongoing medical treatment. Settlement negotiations may not begin until the full extent of your recovery and future medical needs become clearer.

During this time, you’ll need to gather all necessary medical bills, records, and evidence of lost income. 

Determining liability and fault

Establishing liability often requires a thorough investigation. This investigation may involve gathering evidence, such as witness statements, police reports, photographs, and accident reconstruction analyses. This can take time to complete, especially if there are any disputes surrounding the crash.

In some cases, the parties involved in a car accident may have conflicting accounts of what happened. Determining who was at fault may require additional investigation and witness testimony.

If multiple parties were involved, determining who is at fault and to what extent can become more complex. Each party's insurance company may have a different interpretation of liability, leading to disputes that must be resolved before a settlement can be reached.

The negotiation process

Before negotiations can begin, your attorney will need to determine the value of your claim. This includes assessing your medical expenses, property damage, lost wages, and pain and suffering. Additionally, both parties may need time to gather and review documentation and evidence related to these damages.

Negotiations also involve multiple rounds of offers and counteroffers between your attorney and the insurance company. Each round can take time, especially if both parties try to reach a fair and acceptable settlement amount.

The litigation process

If settlement negotiations fail, your attorney may file a lawsuit. They can present the evidence and a compelling argument before a judge and jury. The aim would be to reach a fair financial verdict. This can significantly prolong the timeline. Legal proceedings, including discovery and motions, can sometimes take several years to conclude.

Once your attorney and the at-fault party’s insurance company have reached an agreement, you’ll receive an offer letter. You can choose to accept it or request that your attorney negotiate for a higher amount. If you accept the offer, you should receive a car accident settlement check within a few weeks.

However, don’t accept a settlement unless you’re sure it covers all your losses. Once you accept a settlement offer, you won’t be able to pursue compensation for any other damages in the future.

If you were injured in a car accident, get a Law.com Premier Attorney on your side who can help you seek justice. Our verified attorneys know how to maximize car accident settlement payouts so you don’t have to pay out of pocket.

Premier Attorneys work on a contingency fee basis, which means they won’t charge you any upfront costs for their services. That also means you pay no fees unless they win your case. To get started on your claim, set up a free consultation with an attorney in your area.