How Long Does it Take to Receive a Car Accident Settlement?

While each claim is different, on average, it takes approximately 8 to 16 months to receive a final settlement payment. Some cases may settle faster, or, when a victim sustains severe or permanent injuries, the time frame is often longer. If a case goes to trial, it could take years to achieve a resolution.

What Are the Steps to Settle a Car Accident Claim?

While every case is different, here are the basic steps involved in settling most car accident claims:

Obtaining medical care

It is important to seek immediate as well as follow-up medical treatment after being injured in a car accident. Delaying medical care can make injuries harder to prove and may affect your claim.

Hiring a car accident lawyer

Do this as soon as possible, before making any statements to an insurance adjuster or signing any insurance forms. A good lawyer will guide you through the legal process and handle the necessary paperwork and other components of your case so you can focus on recovering from your injuries. Most importantly, having an experienced attorney on your side significantly increases your likelihood of receiving the compensation you deserve.

Preliminary investigation

Your car accident attorney gathers detailed information about your case. This may include interviewing witnesses, reviewing police reports and obtaining and evaluating medical records. At the same time, the other driver’s insurer will conduct their own investigation.

Initial offer

The insurance company may make an initial settlement offer, which is typically far below what most victims need and deserve to compensate them for their losses. Depending on the situation, your attorney may respond with a counter offer.

Demand package

Your legal team prepares a “demand package” that is sent to the other driver’s insurance company. This package outlines the compensation you are seeking due to your injuries, any long-term consequences, future medical costs and lost wages.

Negotiations

It may take a few months for the at-fault driver’s insurer to respond to the demand package. The insurance company may accept, reject, or counter the demand. Depending on how far apart the offers are, your lawyer may negotiate to reach a fair settlement. 

Filing a lawsuit

If the offer is still insufficient, your attorney may recommend filing a lawsuit against the at-fault driver and/or their insurance company. This step can prolong the timeline, but it often motivates the other party to settle.

Discovery

Each party gathers information about the other side’s claims regarding the accident. The discovery process includes written questions (called interrogatories) that each party must answer. In addition, the lawyers on both sides take depositions (testimony under oath) of the drivers as well as relevant witnesses. The at-fault driver’s insurer will also request the complete medical records of the victim.

Negotiating a settlement

Insurance companies usually want to avoid a trial, which is costly and time-consuming. Knowing the victim’s attorney is prepared to go to court may be enough to motivate an increased settlement offer. A mediator may be used to assist in the negotiations. Many cases are settled during this phase of the legal process.

Going to trial

If no agreement is made, the case may proceed to trial, where a judge and/or jury will hear the case and render a verdict. While this can add months or even years to the timeline, a jury award may lead to higher compensation if the amount offered during the negotiation process is too low. 

Is it Better to Settle a Case or Go to Court?

This is an important decision that depends on the individual circumstances of a case. 

Bringing a case to trial may result in higher verdicts, but they also involve additional costs such as filing fees, court costs and expert witnesses. In addition, when a case goes to trial, you risk recovering nothing if the case is decided in favor of the defendant. An experienced car accident lawyer will help you determine whether going to trial is the right decision.

What Factors Are Most Likely to Delay a Car Accident Settlement?

Many factors that can cause delays in car accident settlements. The time it takes to resolve a case can be months or years longer than average when the following circumstances are present:

Severe, ongoing or permanent injuries

In serious injury cases, a lawyer may postpone a settlement until the extent of the victim’s damages are known. When medical treatment is ongoing, it can be hard to accurately estimate the cost of future care and/or lost wages.

Multi-vehicle crashes where one or more victims are injured

Claims involving more than two auto insurance companies and multiple victims who may have different medical benefits are more complex and time-consuming than standard two-car crashes. Additionally, extensive investigation is usually required to determine who is at fault and to what degree.

Here are some additional reasons a settlement may take longer than anticipated:

• The insurance company delays responding to the demand package
• Disputes over fault of the accident
• The other side claims your injuries were pre-existing rather than a result of the accident
• Claims that your injuries do not meet the legal standard for a threshold injury under Michigan No-Fault law 

Should You Accept an Early Settlement Offer from an Insurance Company?

Car accident victims should never accept a settlement offer without first consulting a qualified attorney. Insurance adjusters often make an initial offer before the victim has spoken to a lawyer or had a complete medical evaluation. Consequently, this offer is typically far less than the claim is worth.

A quick payout may be tempting, but settlements are final. Once accepted, you cannot seek additional damages if your injuries turn out to be more extensive. An experienced accident lawyer can help you avoid a lowball offer. 

How Long Does It Take to Receive Payment After a Case Is Settled?

A lengthy car accident lawsuit can be emotionally draining. Understandably, most victims want their claims resolved as quickly as possible so they can put the experience behind them and focus on healing. Moreover, many need the settlement money to cover medical bills and other expenses they incurred as a result of the accident. Even after a case is settled, it may take several weeks to receive payment.

Your attorney will review the documents and deduct any case-related expenses. These costs may include charges for obtaining medical records and deposition transcripts as well as expert witness fees. Then, after signing all of the necessary settlement documents, you receive your settlement payment.

Put Our Experienced Car Accident Lawyers to Work for You Today 

If you or a loved one is injured in a car accident, we can help. Our knowledgeable legal team knows what it takes to win your case, and we have the expertise and resources to win the compensation you and your family deserve.

Car accident law is complicated, but finding the right car accident lawyer is simple.

Get your case started today by clicking the button below to fill out a brief form or calling 1-800-CALL-SAM for a free, no-obligation remote consultation from the safety of your home.