Experiencing a car crash can cause significant disruptions in your daily life. You deserve suitable compensation from the at-fault driver so you can return to normalcy as soon as possible. This raises the question: How long does a car accident settlement take?
A car accident settlement can take anywhere from just a few months up to several years in some cases. At Sargon Law Group, we can help you understand every aspect of the settlement process so you can know exactly what to expect as your case unfolds. Here’s what you need to know about the timeline and what can speed up or slow down your settlement.
What Determines How Long Car Accident Settlements Take?
There are several factors that determine how long a car accident settlement takes. Every case is unique, so it is important to communicate openly with your personal injury lawyer. They will evaluate the key factors of your settlement to help you understand how long the entire process might take.
Proving Negligence and Liability
When you file a car accident claim, the burden of proof is on you when it comes to establishing the other driver’s negligence. You and your legal team must present documentation, witness statements and other evidence that clearly illustrates liability.
This may be very simple in some cases, especially if the evidence is overwhelmingly in your favor. In other cases, though, the evidence might be vague or difficult to obtain. This can make the settlement process take much longer as each side debates back and forth about negligence.
The Severity of Your Injuries
The more devastating an accident is, the longer the settlement process tends to take. This is because simple injuries are relatively easy to evaluate. For severe injuries, though, it is not immediately apparent how much the injury will affect your life.
It can take time for medical professionals to determine how long you will need to undergo treatment and what changes you should make to your lifestyle to accommodate the injury. You deserve to recover suitable compensation for all future treatments and the ongoing loss of your quality of life, so it is worth taking the time to get a complete medical evaluation before accepting a settlement offer.
The Insurance Company’s Willingness To Negotiate
Insurance companies are in the business of making money and protecting their bottom lines. If they believe that prolonging the settlement process will benefit them in the long run, they will likely do so.
This is an effective tactic for insurers because they know that injured people need compensation as soon as possible and want to put the ordeal behind them quickly. However, this often leads to claimants accepting lower settlements than they deserve. Therefore, it is important to advocate for the full amount of compensation entitled to you, even if it prolongs the process.
What Happens During a Car Accident Settlement?
When you are ready to initiate the settlement process, your legal team will send a demand to the insurance company, collect evidence, participate in negotiations and file a lawsuit if necessary. How long the car accident settlement takes will depend on how the insurance company reacts during each of these steps.
Demand Package
To help minimize how long a car accident settlement takes, your legal team will try to secure a favorable settlement without filing a lawsuit. This starts by sending a “demand package” to the other driver’s insurance company. This package includes a formal request for a specific amount of compensation, as well as all relevant documentation that demonstrates why you deserve that amount.
The settlement process will truly begin when the insurance company responds to the demand package. Depending on their response, you may decide to either settle, negotiate for a better settlement or take the matter to court.
Evidence Discovery
Discovery is the process of exchanging evidence between both sides of a lawsuit. Each party will conduct its own investigations before they meet for negotiations. Photographs, medical records and witness statements are just a few types of evidence that will come up during discovery in a car accident case.
Discovery can be a lengthy process that lasts multiple months or even up to a year or more. A successful personal injury claim requires evidence that proves the other party’s negligence and that their negligence resulted in your damages. Keep in mind that each side must present all relevant evidence, even if it would benefit the other party’s case.
Negotiation
Even if the insurance company initially denies your claim or offers a startlingly low settlement, it is likely in your best interest to attempt negotiation. It is often preferable to resolve your case outside of court, even when negotiations seem to be progressing slowly.
Negotiation can be another lengthy step in the process. Each side will continue extending offers and counteroffers in an attempt to arrive at a middle ground that both parties can agree upon. If new evidence comes to light, it may be necessary to conduct further investigations and return to the discovery phase.
Litigation
When an insurance company acts in bad faith or refuses to give you suitable compensation for your damages, litigation may be the only remaining option for securing a reasonable settlement. This entails filing a lawsuit if you did not already and suing the other party to confront them in court.
During a courtroom trial, your lawyer will present your case to the judge and jury. The goal is to secure a verdict that will require the insurance company to pay what they owe, according to the court. Keep in mind that litigation requires paying additional court fees and can extend the settlement process due to the need to schedule court dates.
What Is a Reasonable Car Accident Settlement Offer?
A reasonable settlement offer for a car accident should fully cover all of the damages you sustain as a result of that accident and the other person’s negligence. The settlement should compensate you for current and future losses relating to:
- Medical expenses
- Lost wages
- Loss of earning ability
- Property damage
- Physical pain or emotional suffering
However, comparative negligence laws can affect how much the other driver, or their insurance company, should reasonably pay. In Arizona, Colorado, New Mexico and California, comparative negligence means that the amount of compensation an injured person can receive will decrease based on their share of fault for the accident.
If you cannot come to an agreement with the other party on what a reasonable settlement offer might be, you do not necessarily have to resort to litigation. Mediation and arbitration can be effective methods to help facilitate favorable outcomes during negotiation. The guidance of a neutral third party can also minimize how long a car accident settlement takes.
When Will You Get Your Check After Settling the Case?
Settlement money typically arrives around 3 to 6 weeks after a case is resolved. When the insurance company writes your check, they will likely make it out to you and your lawyer. Your lawyer will receive the check, take out the agreed-upon contingency fee and then promptly distribute your rightful funds to you.
If the insurance company does not send a settlement check in a timely manner, it may be because the insurer is taking advantage of the payment terms or administrative procedures. Even so, you can rest easy knowing that your car accident lawyer will do everything in their power to hold the insurance company responsible for their payment obligations.
Do You Have To Pay Taxes on Your Car Accident Settlement?
In most cases, you do not have to pay taxes on any personal injury settlements you receive. While the IRS does consider some lawsuit settlements as taxable income, IRC Section 104 states that damages received on account of personal physical injuries are not part of your taxable gross income.
However, punitive damages are taxable even if they relate to a personal injury claim. For example, if you secure extra compensation from the insurance company for any malicious behavior or bad faith practices they demonstrated against you, you must pay taxes on those punitive damages.
Will Your Health Insurance Seek Reimbursement After the Settlement?
If your health insurance provider covered your medical expenses before you received a car accident settlement, they will likely seek reimbursement once you recover compensation. If there is a subrogation clause in your health insurance policy, the provider has every right to claim reimbursement from the related settlement.
Medicare can seek reimbursement from your settlement as well. If Medicare helps cover your medical bills, they automatically have a lien on any settlement you receive related to those injuries. This lien is a legal claim you agree to comply with as part of your Medicare policy, stating that Medicare can receive direct payment from the settlement for any medical services provided.
How Long Does It Take for a Car Accident Settlement To Resolve by Trial?
You might decide to take your case to trial if negotiations are not panning out, but this can add months or even years to the process. Settling outside of court is typically faster and less expensive, and it often lets you retain more control over the outcome of your settlement.
However, there are several reasons you might take your case to court, such as:
- Seeking the court’s acknowledgment of the other party’s liability according to the evidence you present
- Holding the insurer accountable for paying the settlement dictated by the court
- Choosing to sue before the statute of limitations prevents you from taking litigative action
Overall, a personal injury case that goes to trial can take more than a year from the time you file the initial claim until you finally receive a settlement. It is worth consulting carefully with your attorney before making the decision to go to court.
Can You Reopen a Lawsuit After Accepting a Settlement?
It is usually not possible to reopen a lawsuit after the settlement. This is because almost every settlement agreement includes a “release of liability,” meaning you agree to free the other party of any liability for your damages related to that accident thereafter.
However, there are exceptions when this release of liability does not apply. It may be possible to reverse a settlement if:
- The other party committed fraud or coercion during the settlement process
- New evidence comes to light that would cause the settlement to reach a different outcome
- There was a mutual mistake that led you to receive an unreasonable settlement
If any of these factors caused you to receive an unsuitable amount of compensation for your damages, then it is important to explore the possibility of reopening the lawsuit. This essentially entails restarting the legal process from the beginning, so it could take at least another several months before you secure the proper settlement amount.
How Can a Car Accident Lawyer Expedite the Settlement Process?
Working with an experienced car accident lawyer can speed up the settlement process because they understand how to efficiently collect the proper evidence and present it compellingly. The right attorney also knows how insurance companies think, making it possible to hold them accountable and prevent them from taking advantage of you.
At Sargon Law Group, our car accident lawyers expedite the process by:
- Providing thorough case evaluations during the first consultation
- Working quickly to investigate every aspect of your car accident
- Promptly submitting all relevant paperwork on your behalf
- Keeping the insurance company on track during negotiations
- Aggressively representing you in court if you decide to sue
These methods not only help you get a settlement faster but also ensure you get maximum compensation for your damages. We want to help you achieve a quick and favorable result and avoid the pitfalls of filing a claim by yourself.
Sargon Law Group Can Help With Your Car Accident Settlement
Our team at Sargon Law Group is here to provide assistance and knowledge to people who have experienced car accidents in Arizona, New Mexico, Colorado and California. We can help you understand how long your car accident settlement will take and answer any other questions you have. Don’t wait—every day matters in your settlement process. Contact us today to schedule your free consultation.