When recovering from a car accident, the legal process can be long and may require a strategic approach. The settlement process for car accident lawsuits generally consists of the following steps:
- Investigation
- Documentation
- Negotiation
- Agreement
You can better navigate this process by understanding how liability, insurance policy limits, and other details affect your settlement value. However, an attorney helps negotiate with the insurance adjuster to protect your rights and get your deserved compensation.
State Laws Impacting Car Accident Settlements
Car accident settlement processes vary depending on where the accident occurred. In no-fault states, drivers rely on their auto insurance to cover the cost of their injuries, regardless of who was at fault.[1] If you use up your insurance coverage and need more compensation, you can seek damages from the other driver’s insurance policy.[1] In tort states, also called at-fault states, the party responsible and their insurance provider are responsible for the plaintiff’s damages.[2][3]
Individual insurance requirements and regulations also differ per state. For example, most states require at least $25,000 per person for bodily injuries, while others, such as Alaska, require at least $50,000.[4] These regulations affect how much drivers can seek from an insurance policy, whether their own or the other party’s, to compensate for damages.[4]
Statute of Limitations for Car Accident Claims
Each state has a statute of limitations, a law that imposes a deadline for filing a lawsuit.[5] If you don’t act within your state’s statute of limitations, you may forfeit your right to file a lawsuit, and your car accident settlement process may be time-barred.[5]
Most states provide between 2 and 4 years for you to file, with states such as Maine and Minnesota allowing up to 6 years. Others, such as Louisiana, may require you to file injury claims within a year. Verify your state’s statute of limitations, and act quickly to ensure you don’t miss out on compensation.[6][7][8][9]
Hiring a Car Accident Lawyer for Your Settlement
Keeping the statute of limitations in mind, connect with an attorney as soon as possible following the car accident. Typically, car accident attorneys aim to settle outside of court and avoid going to trial.[10] Most car accident claims end in settlements, minimizing the time and cost associated with taking a case to trial.[10]
Hiring a car accident lawyer can provide other advantages, such as:
- Legal expertise: Car accident attorneys have essential skills for handling settlements and court cases. They can help navigate statute of limitations deadlines, liability insurance coverage, and other complexities of the settlement process.
- Negotiation skills: Skilled attorneys are familiar with insurance company lowball tactics. They can negotiate on your behalf to ensure you receive fair compensation.
- Evidence and investigation: By gathering and analyzing evidence, your attorney can strengthen your case by demonstrating the extent of your damages.
Many car accident lawyers work on contingency, meaning they only receive payment if they win a favorable outcome for your case. This arrangement helps offset the financial burden of upfront legal costs for any car accident lawsuit, like rear-endings.
To get the most from your case, look for a lawyer with proven expertise and success with car accident cases. Verify their reputation by checking online reviews and getting referrals from trusted sources. You should set clear expectations for responsiveness and understand their fee structure before proceeding.
Negotiating a Fair Car Accident Settlement
Certain steps in the negotiation process can help you receive a fair collision settlement for injuries and damages.
- Gather evidence. To support your claim, you need to gather relevant documentation, such as medical records, photographs, and police reports.
- Calculate damages. Consult with your legal representation, doctors, and other professionals to determine a fair settlement amount.
- Send a demand letter to the insurance company. Outline the details and evidence of your claim in this document.
- Review offers. When the insurance company responds with a settlement offer, you and your attorney can assess whether you should accept or continue negotiating. There may be a series of offers and counteroffers before you accept a settlement.
- Finalize the settlement agreement. Once your case settles, you’ll receive formal documentation that details the agreement.
Evidence for a Car Accident Claim
Detailed and accurate evidence is critical for a strong claim. Your evidence should include:
- Photos and videos of the accident
- Police reports
- Witness statements
- Medical records
- Documentation of related expenses
Following your car accident, take prompt action to collect and preserve evidence. For example, failing to provide photos of the accident may prevent insurance adjusters from gauging the circumstance and liability. Thorough evidence also helps the insurance adjusters determine fault for the accident and support your compensation claim.
Average Car Accident Settlement Timelines
Most car accident settlement cases reach a decision in 18 months or less.[10] However, the time varies depending on case complexity and insurance provider procedures.
The initial investigation phase typically lasts a few weeks to a few months, and medical treatment and recovery may span several months or longer, depending on the severity of your injuries. The negotiation process usually takes 4-6 weeks but depends on the extent of damages, clarity of liability, and the procedures of the insurance adjuster.[10] Your attorney can provide insight into your circumstances and the expected wait period.
Why a Settlement Can Be Beneficial
While trials can be costly, time-consuming, stressful, and unpredictable, car accident settlement processes have reliable procedures and outcomes. Settling out of court can reduce overall legal costs and help you receive your settlement quickly.
Most car accident claims might not go to court, but the process of reaching a settlement may leave you in a difficult financial position. In cases like this, pre-settlement funding can help you cover the costs of rent, mortgage, medical bills, and more. We can help by purchasing a portion of your expected settlement and provideing you with the funds you need right now.
Learn more about how pre-settlement funding works and take a look at our settlement funding FAQs. When you’re ready to apply, visit us online to get started or call us at 1-877-USCLAIMS.
The availability of pre-settlement funding varies by state. Contact USClaims for more information.
Sources
- Goguen, David. “How Does a No-Fault Car Insurance Claim Work?” www.nolo.com, 2 Feb. 2022, www.nolo.com/legal-encyclopedia/how-does-no-fault-car-insurance-claim-work.html.
- Marlett, David C., et al. “How Does Tort Insurance Work? Full Vs. Limited.” US News & World Report, 27 Mar. 2024, www.usnews.com/insurance/auto/full-vs-limited-tort.
- Law, Pendergrass. Comparing No-Fault and At-Fault Insurance Systems | the Pendergrass Law Firm, PC. 12 July 2024, georgiatrialfirm.com/blog/comparing-no-fault-and-at-fault-insurance-systems.
- “Car Accident Laws: 50-State Survey.” Justia, 22 Apr. 2024, car-accidents.justia.com/car-accident-laws-50-state-survey.
- “Statute of Limitations.” LII / Legal Information Institute, www.law.cornell.edu/wex/statute_of_limitations.
- “Civil Statutes of Limitations.” www.nolo.com, 23 June 2023, www.nolo.com/legal-encyclopedia/statute-of-limitations-state-laws-chart-29941.html.
- Title 14, §752: Six Years. legislature.maine.gov/statutes/14/title14sec752.html.
- Sec. 541.05 MN Statutes. www.revisor.mn.gov/statutes/cite/541.05.
- Louisiana Laws – Louisiana State Legislature. legis.la.gov/Legis/Law.aspx?d=110515.
- Firm, Whitley Law. “Why Car Accident Cases Don’t Go to Trial – Whitley Law Firm.” Raleigh Personal Injury Lawyer – Whitley Law Firm, 14 June 2024, whitleylawfirm.com/blog/reasons-car-accident-cases-usually-dont-go-to-trial.