Auto Accident Settlement Timeline (2024 Guide) (2024)

Contributor

Updated: Jan 27, 2023, 6:40am

Table of Contents

Show more

If you were hurt in a car accident, you may be legally entitled to recover compensation from the driver who caused the collision. Your ability to do this will depend on state laws, whether you shared any of the blame for the crash, and how severely you were harmed.

If you are allowed to get compensation from the other motorist in the crash, you can do this in one of two ways.

• You could sue and convince a court to award you compensation.
• You could negotiate a settlement outside of court. Generally, this involves making a deal with the insurance company representing the at-fault driver.

If you negotiate an auto accident settlement, the insurer for the at-fault driver generally agrees to pay you a set amount of money. In exchange, you release the insurer (and the covered driver) from any further liability arising out of the accident.

A settlement can be a simpler and faster way to resolve your claim compared with a lawsuit. And insurers often like to settle because this eliminates the risk of an unexpectedly large court verdict.

However, you need to make sure you are getting fair compensation before agreeing to a settlement because you cannot change your mind later on.

If you are looking for an auto accident settlement timeline, it is important to realize there are different steps involved in the settlement process. Each of them can take days, weeks, or months depending on the circ*mstances.

Typically, the steps involved in settling a car accident claim include the following:

• Reporting the car accident to the police and to the insurance companies representing all drivers in the collision
• Taking photos and videos of the accident scene
• Getting a diagnosis for car-accident injuries and obtaining appropriate medical care
• Obtaining evidence such as witness statements and police reports that shows who is at fault for the collision
• Estimating how much your car accident claim is likely to be worth based on the severity of your injuries, the losses you suffered and the extent of evidence showing the other party was to blame
• Writing a demand letter asking the insurer to pay you an appropriate amount of compensation
• Negotiating with the insurer to determine how much monetary compensation you will be offered to resolve your claim outside of court

In some cases, you may decide to file a lawsuit against the other driver even if you would prefer to settle outside of court.

Filing suit can help preserve your rights since you have a limited period of time to pursue a case in court due to the statute of limitations. The insurer may also be more willing to settle if you have sued since this lets the insurance company know that you are serious about protecting your rights. Suing can also help you to obtain evidence since going to court initiates a discovery process in which information is exchanged with the other driver.

However, filing court paperwork to initiate a lawsuit can be a complex process, so you should make sure you have an attorney on your side to assist you if you decide to take this approach at any point during the auto accident settlement process.

Because there are so many variables impacting when an auto accident case will settle, there is no average time for cases to be resolved.

In many cases, auto accident settlements occur within nine to 18 months. But your claim could be resolved within weeks or it could take years depending on:

• How clear the evidence of fault is
• The extent of your injuries
• The willingness of the insurance company to accept responsibility and make a fair settlement offer

You likely want to see an auto accident settlement timeline to help you determine how long your case will take to resolve. However, it’s important to realize there are challenges involved in estimating the amount of time that is likely to be involved in each step of the settlement process. The timeline for each step of the process can vary a lot depending on the unique facts surrounding the crash.

Because the timeline is so case-specific, the best thing to do is to talk with a car accident lawyer who knows the details involved in your situation. You can also take a look at one sample auto accident settlement timeline below. But, remember, this is just one of many possible scenarios and your case could take a longer or shorter period of time based on the specifics of your claim.

If you are unable to reach a settlement without moving forward with a car accident lawsuit, it could take several weeks to file a claim in court, then six to 12 months to move through the discovery phase and actually get to trial. Most trials last around one to three days once they begin. A settlement could be reached at any point during this process once the insurer makes a fair offer.

If your hope is to resolve your car accident claim as quickly as possible, hiring a car accident lawyer could help you do that. Your attorney has the knowledge necessary to obtain evidence, help you to write a strong demand letter and assist in negotiating with the insurer.

The insurance company may also be more likely to make a fair offer if they know you have a lawyer protecting your rights.

Settling a car accident claim generally allows you to recover compensation faster than if you went to trial. You also have the certainty of knowing how much money you will receive. If you go to court, there are no guarantees you will prevail and be awarded a generous amount of compensation.

However, deciding to settle means giving up your right to sue. And you want to be sure you don’t accept a lowball settlement offer. Your settlement should be large enough to compensate you for medical bills, lost wages, pain and suffering and emotional distress damages.

An attorney can assist you in deciding whether settling is the best choice or whether you should move forward with making your claim.

If you decide to file a lawsuit, you must act within your state’s statute of limitations.

While this can vary by location, it is usually within two to four years of the time of the accident. Waiting longer than this means your claim won’t be able to move forward, so keep this in mind when considering your auto accident settlement timeline.