Understanding Car Accident Settlements
Many car accidents are minor fender benders that result in no injuries. However, some accidents can be life-altering, leading to severe physical injuries, significant property damage, and mental distress from dealing with the aftermath.
In many instances, the injured party may lose wages and be unable to engage in activities they once enjoyed, all due to another person’s negligence. When this happens, the injured party may file a claim and bring a personal injury case against the at-fault driver and their insurance company. Often, the insurer will attempt to offer a settlement.
Learn more about what a car accident settlement is and how an injured party might navigate the settlement process.
What is a Car Accident Settlement?
A car accident settlement is the outcome of negotiations between two parties (and their representatives). It is an agreement between the negligent driver, who is deemed at fault, and the injured victim to resolve the case out of court for a specified amount of money that compensates the victim fairly.
The amount of money (called damages) usually depends on factors like the severity of the injuries, lost wages, the degree of responsibility each party holds for the accident, and the at-fault driver’s available insurance.
Both parties can choose to participate in the settlement process, which is not legally required but often saves time and money by avoiding litigation.
The Car Accident Settlement Process
The settlement process involves several steps:
- A liability claim is filed with the at-fault driver’s insurance company.
- An investigation is conducted by the insurance company.
- The liability claim is approved or denied.
- A damages claim is submitted for review.
- A settlement offer is made, followed by negotiations if necessary.
Consulting with an attorney before beginning this process is crucial, as there are time limits for filing claims, and actions taken immediately after the accident can impact your claim.
While it might seem that the other party’s insurance company should quickly cover obvious injuries and losses, the process usually takes longer. The insurance company wants to verify the evidence and information presented, and disputes often arise during this process.
Unfortunately, this legal process is often more complicated than anticipated. The length of time it takes to reach a settlement depends on several factors. If your settlement seems delayed, here are three common reasons that might be causing the delay.
The Complexity of a Case
Complex car accident cases take longer to resolve than simpler ones. Your case may be more challenging if it involves multiple cars or parties, extensive negotiations, factual disputes, or large settlement demands. These cases are best handled with the help of an attorney, though even with representation, it can be difficult to predict how long the settlement process will take.
Injury Treatment
If you’re injured and receiving treatment, your settlement might be delayed until your treatment concludes. The insurance company likely won’t offer a fair settlement until it knows the full extent of your medical bills. Severe injuries and multiple parties involved in the accident can prolong this process further.
Legal Actions
Car accident cases are rarely straightforward. The other driver might dispute liability, and their insurance company may resist paying a settlement if possible. If there are discrepancies or conflicting evidence, this can further delay your settlement.
How Is a Car Accident Settlement Determined?
Car accident settlements are calculated based on several factors, including:
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Damages: You must have suffered harm to be eligible for damages, which can cover medical expenses, lost wages, pain and suffering, and more. Severe accidents and injuries usually result in larger settlements.
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Available Insurance: The amount you can receive is often limited by the at-fault driver’s liability insurance. If the driver carries only the minimum liability coverage, you won’t receive more than the policy limit, even if your injuries are severe.
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Fault: Most states follow a fault-based policy, allowing injured drivers to seek compensation from another party’s insurance company. However, if you share some fault, your settlement may be reduced by the percentage of fault attributed to you.
The Car Accident Settlement Process
The settlement process involves several steps:
- A liability claim is filed with the at-fault driver’s insurance company.
- An investigation is conducted by the insurance company.
- The liability claim is approved or denied.
- A damages claim is submitted for review.
- A settlement offer is made, followed by negotiations if necessary.
Consulting with an attorney before beginning this process is crucial, as there are time limits for filing claims, and actions taken immediately after the accident can impact your claim.
FAQs
What Are the Requirements for a Car Accident Settlement?
Before reaching a settlement, you must file a personal injury claim and prove that another person’s negligence caused your harm. After the claim and investigation phases, the insurance company will either accept or deny your claim.
How Long Does a Car Accident Settlement Take With a Lawyer?
While a lawyer can ensure your paperwork is correct and negotiate on your behalf, there are no guarantees about how much time will be saved. Settlements can still take considerable time, depending on ongoing medical treatment, disputes, and other factors.
How Long Do Car Accident Settlements Usually Take if You’re Not at Fault?
Even if you are not at fault, your settlement may still take time. Severe injuries or disputes over the facts can prolong the process.
Secure Pre-Settlement Funding With PrimeCare Network
While you may see your car accident claim as straightforward, many cases are complex, especially when significant compensation is involved. Court battles are often long and drawn out, and the settlement process can take 9 to 18 months or longer.
If you’re struggling financially while waiting for your settlement, PrimeCare Network can help. We offer pre-settlement cash advances to those awaiting compensation from their car accident settlement. This funding provides the cash you need now without paying out of pocket, allowing you to focus on your recovery.
PrimeCare Network understands the challenges you face and offers risk-free funding based on the strength of your claim. Apply online, and if approved, you can receive funds in as little as 24 hours.
The information provided on this website is for general informational purposes only and does not constitute legal advice. Always consult with your attorney for advice specific to your situation.
