How Long Before You See Settlement Money After a Car Accident?

Zeke Carrington | Posted on September 12, 2024 |

Being in a car accident can be very scary and tough. Besides worrying about safety, many people also face financial problems from medical bills, lost wages, and vehicle repairs. In the USA, 40,990 people died in car crashes in 2023, which is about 3.6% fewer than the 42,514 deaths in 2022. If you’ve been in a car accident and are seeking compensation, you might be wondering how long it takes to get settlement money from a car accident.

The Car Accident Settlement Process

To get a clear idea of how long it takes to get settlement money after a car accident, it’s important to know the basic steps involved. Here’s a simple breakdown of what happens:

1. Accident and Medical Treatment

First, there’s the accident itself. After the accident, you need to get medical treatment for any injuries. How long this takes depends on how serious your injuries are. It could be a few visits to the doctor or several years of treatment.

2. Collecting Evidence and Submitting Your Claim

Once your medical treatment is done, the next step is to gather all necessary evidence and submit your claim to the insurance company. If you’re wondering how long an insurance settlement takes, this usually takes between 1 to 8 weeks, depending on how many medical records and other documents you need.

3. Negotiating with the Insurance Company

After you submit your claim, the insurance company reviews it and starts negotiating with your lawyer to settle the claim. This can take from 1 to 2 months, based on how complicated the negotiations are.

4. Reaching a Settlement (or Going to Court)

If you agree on a settlement, the next step is to finalize it. The case could go to court if no deal is made, which could slow down the process.

5. Issuing and Depositing the Check

Once a settlement is agreed upon, the insurance company sends a check. This check is usually made out to both you and your lawyer. Your lawyer deposits it into a trust or escrow account. The check needs to clear before any money is given to you.

6. Clearing the Check and Distributing Funds

After the check clears, your lawyer will take out their fees and any unpaid medical bills from the settlement. After that, you get the rest of the money.

7. Receiving Your Settlement

Finally, you will get your settlement check. This can take a few weeks to several months after the settlement is agreed upon, depending on how quickly the insurance company and your lawyer handle the process.

These steps give you a clear idea of the car accident timeframe.

How long does a car accident lawsuit take?

If you can’t settle with the insurance company, you might need to file a lawsuit. Here’s how long a car accident lawsuit can take:

Pre-Lawsuit Phase: Gathering evidence and preparing for the trial can take a few months to a year.
Filing the Lawsuit: After the case is filed, it goes into the discovery process, where both sides share information. It takes a few months most of the time.
Trial: When the case goes to court, it might last a few weeks. The court needs more time to make a ruling after the trial.
Post-Trial: If there are appeals, this can add more time to the process. A lawsuit might take a year or more to resolve.

Average Car Accident Settlement Time

The average length of time for car accident settlement can vary widely. Here’s a rough estimate:

Simple Cases: If both parties agree easily, the settlement process usually takes about four to six weeks.
Complex Cases: If the case is more complicated, like when there are multiple parties or disagreements about who is at fault, it can take several months to a year or more to settle.
Severe Injuries: The settlement process may take longer if you have major injuries that need ongoing care. Things could take months or even years to figure out.

Car Accident Settlement Timeline

Getting paid can take a lot longer if your case goes to court. On average, car accident lawsuits can take anywhere from 1 to 3 years to resolve, sometimes even longer for very complex cases.

Here’s a rough breakdown of the lawsuit timeline:

Filing the lawsuit (1-2 months)
Discovery phase (6-12 months)
Mediation or settlement conferences (1-2 months)
Trial preparation (2-3 months)
Trial (a few days to several weeks)
Post-trial motions and possible appeals (several months to years)

It’s worth noting that most car accident cases settle before going to trial. Negotiations for a settlement often go on after a case has been filed, and a deal can be reached at any point during the process.

How long does it take to get a settlement check?

Once you’ve signed a settlement release form, getting your settlement check typically takes from a few weeks to several months. Here’s a simple overview of what happens next:

Signing the Release Form: First, you and your lawyer, the insurance company, and anyone else involved will sign a release form. This form finalizes the settlement and means you agree not to sue the party responsible for your injuries.
Insurance Company Processing: After the release form is signed, the insurance company will start processing your payment. Your case and how quickly the insurance company works will determine how long this takes. It could be a few weeks to several months.
Deducting Fees: Once the insurance company has processed your payment, your lawyer will subtract their fees and any outstanding medical bills from the settlement amount. What’s left will be given to you.
Final Distribution: After all fees and liens are deducted, your lawyer will send you a final check with the remaining settlement money. This final step can also take a few weeks to several months, based on how long the insurance company’s processing takes.

Factors Affecting the Settlement Timeline

Getting your settlement money after a car accident can take a while, depending on several factors. Here’s a look at what can influence the timeline:

Complexity of the Case: The complexity of your case is a major factor. If your case involves multiple parties, severe injuries, or disputes about who is at fault, it can take much longer to settle.
Extent of Injuries: It also depends on how bad your injuries are and how long it takes to get your payment. If you have severe injuries that need ongoing treatment, gathering all the necessary medical records and documentation can take more time.
Efficiency of Your Lawyer: How quickly your lawyer works can make a big difference. An experienced and proactive lawyer can help speed up the process by quickly collecting all required documents and negotiating effectively with the insurance company.
Insurance Company Response Time: The timing can also be changed by how long it takes the insurance company to look over your claim and get back to you. Some companies may take longer to process claims and make settlement offers, which can delay the entire process.
Evidence Collection: Getting all the necessary proof, like medical papers and accident reports, can slow down the settlement process. The more evidence needed, the longer it might take.
Negotiation Time: How long the negotiation process takes can affect the overall timeline. Extensive back-and-forth discussions can prolong the settlement.
Medical Documentation: The time needed to compile and verify medical documentation can influence how quickly you get your settlement.
Court Involvement: If the case goes to court, it can significantly extend the timeline, as legal proceedings add more steps and delays.
Appeals: If either party appeals the decision, it can further lengthen the time it takes to receive your settlement money.

Importance of Hiring an Experienced Lawyer

Having an experienced lawyer is crucial for speeding up the settlement process. A reputable attorney can help you quickly get the papers you need, negotiate with the insurance company, and make sure you get the money you deserve for your injuries.

Understanding the Timeframe for Car Accident Settlements

Being in a car accident can be stressful and costly. Knowing how long it takes to get settlement money can help you plan better. The process involves several steps and can vary depending on your case’s complexity, the extent of your injuries, and how quickly your lawyer and insurance company work. Simple cases might be resolved in weeks, while more complex ones or severe injuries could take months or even years. Understanding this can help you stay informed and manage the process more effectively.