Why Is My Car Accident Settlement Taking So Long?
Delays in car accident settlements often stem from intricate evaluations, negotiations, and legal complexities that require careful resolution.
Waiting for a car accident settlement can be a frustrating experience, particularly when financial pressures mount. The process often takes longer than expected, leading to uncertainty. Several factors contribute to these delays.
Lengthy Insurance Assessments
After a car accident claim is filed, the insurance company undertakes an assessment process that can extend the time needed to reach a settlement. An insurance adjuster investigates the claim to determine the insurer’s liability and the appropriate payout based on the policy.1AAA Club Alliance. What Does a Claims Adjuster Do?
The adjuster reviews the claim details, confirms policy coverage, and gathers evidence, which may include the police report, witness statements, driver interviews, and photographs of the scene and vehicle damage. This investigation aims to reconstruct the incident and evaluate the claimed damages. The time required depends on the accident’s complexity and the availability of information.
Adjusters also evaluate proof of damages, like vehicle repair estimates, potentially requiring a car inspection to assess damage severity and determine if repairs are feasible or if the car is a total loss. An adjuster’s caseload and internal company procedures, such as requiring supervisory approval for larger claims, can also affect the timeline. State regulations, often guided by models like the National Association of Insurance Commissioners (NAIC) Unfair Claims Settlement Practices Act, generally require insurers to handle claims promptly. These rules typically set deadlines for acknowledging claims (often 10-15 business days) and conducting investigations (perhaps 30-40 days), though extensions are possible for complex cases. These standards aim to prevent unreasonable delays while ensuring a thorough assessment.
Liability Disagreements
Disagreements over who was legally at fault for the collision are a common cause of settlement delays. Establishing fault requires showing that one party acted negligently — failing to exercise reasonable care — and that this failure directly caused the accident and damages. This involves proving a duty of care was owed, that duty was breached (like violating a traffic law), the breach caused the accident, and actual harm resulted. The claimant typically must prove negligence by a “preponderance of the evidence,” meaning it is more likely than not that the other party was at fault.
Disputes frequently arise from conflicting accounts of the accident, such as disagreements about right-of-way or traffic signals. A lack of clear evidence, like reliable witnesses or physical proof, can complicate fault determination. While traffic law violations strongly suggest fault, proving a violation occurred or was the primary cause can be challenging. Insurance companies investigate these conflicts, which can lead to prolonged negotiations if they contest their policyholder’s responsibility.
Complexity increases in states using comparative negligence, where fault can be shared. In “pure” comparative fault systems, recovery is possible even if mostly at fault, but reduced proportionally (e.g., 90% at fault recovers 10% of damages). In “modified” comparative fault systems, recovery is barred if fault reaches a certain threshold (often 50% or 51%). Disputes over fault percentages under these systems often delay settlements, as insurers seek to minimize their policyholder’s attributed fault and payout. Resolving these disagreements may require extensive negotiation or accident reconstruction experts, adding significant time.
Extensive Medical Evaluations
The severity and nature of injuries significantly influence settlement timelines because comprehensive medical evaluation is necessary to determine the full extent of damages. Insurance companies require complete medical records—including emergency room visits, doctor appointments, diagnostic tests, and therapy notes—to verify injuries and link them to the accident. Compiling these records takes time.
Settlement talks often wait until the injured person reaches Maximum Medical Improvement (MMI), the point where their condition stabilizes and significant further recovery isn’t expected. Reaching MMI clarifies the long-term impact and any permanent impairment. Settling before MMI risks underestimating the claim’s value, as future medical needs might not be fully known. Depending on injury severity, achieving MMI can take weeks, months, or longer, directly affecting the settlement schedule.
Delays can also occur if the insurer questions the necessity, cost, or accident-relatedness of medical treatment. The insurer might request an Independent Medical Examination (IME) by a physician they choose to assess the medical condition, injury cause, treatment appropriateness, and work capacity. Scheduling and completing the IME, followed by waiting for the report, adds more time to the process.
Calculating the cost of future medical care for long-term or permanent injuries is another complex, time-consuming step. This often involves medical and economic experts. A life care planner may detail anticipated future needs (surgeries, therapy, medication, assistive devices) and project costs over a lifetime. An economist might then calculate the present value of these future expenses. Obtaining these expert opinions adds considerable time before a settlement reflecting the full damages can be reached.
Complex Settlement Discussions
Once initial assessments are done, settlement discussions begin, which can also cause delays. Negotiations involve back-and-forth communication between the claimant (or their representative) and the insurance adjuster to agree on compensation. This stage is often prolonged because the parties usually start with different claim valuations.2Insurance Claim Recovery Support. Behind The Scenes: How Insurance Companies Handle Settlement Talks The insurer may offer a lower amount initially, while the claimant seeks full compensation for losses.
Negotiations involve presenting arguments and evidence for economic damages (like medical bills and lost wages) and non-economic damages (like pain and suffering). Each offer and counteroffer requires review and response, potentially involving internal insurance company approvals for larger sums. This exchange can take multiple rounds, extending the timeline. Complexity grows with multiple parties, requiring coordination among various claimants and insurers.
The applicable insurance policy limit is a major factor. Policies have maximum payout amounts. If damages exceed the at-fault party’s limit, the insurer typically pays only up to that limit. Negotiations might stall if damages clearly surpass coverage, though determining the precise value of damages, especially future losses, can still be contentious even when limits are known.
The presence of liens—legal claims against settlement proceeds by third parties like health insurers (including Medicare or Medicaid) or medical providers seeking repayment for accident-related services—can also lengthen discussions. Before settlement funds are disbursed, liens must be identified, verified, and resolved. This involves communicating with lienholders, confirming amounts owed, and potentially negotiating reductions. Federal law, for example, gives Medicare recovery rights, requiring a formal process to finalize the lien amount, adding procedural steps and time.3The Law Offices of Robert E. Brown, P.C.. Medicaid Liens in Personal Injury Cases
Potential Lawsuits
If settlement negotiations fail, filing a lawsuit may be the next step. This moves the dispute into the court system, initiating formal procedures that extend the resolution time, often by months or years compared to pre-suit settlements.4National Women’s Law Center. Civil Litigation Fact Sheet
The decision to sue is often driven by the statute of limitations, a legal deadline for starting lawsuits (typically one to six years for personal injury from car accidents, varying by state). Filing suit preserves the right to seek compensation through court, even if talks continue. After the complaint (the document starting the lawsuit) is filed and served on the defendant, they have a set time (often 20-30 days) to file a response (an answer).5Simmons Perrine Moyer Bergman PLC. Civil Lawsuits: The 8-Step Process From Start to Finish These initial steps consume time based on court rules.
The case then enters discovery, a formal evidence-gathering phase governed by court rules, which is often the longest part of litigation.6U.S. District Court Southern District of New York. A Guide to the Discovery Process Methods include written questions (interrogatories), requests for documents, and depositions (sworn testimony outside court). Discovery allows both sides to assess the case but can take months to over a year, depending on complexity and cooperation. Disputes over information sharing are common and may require court intervention, causing further delays.
Throughout litigation, parties may file motions asking the court for rulings.7Sacramento County Public Law Library. Motions in Civil Cases Examples include motions to dismiss (arguing the lawsuit is invalid) or motions for summary judgment (asking for a ruling without trial based on undisputed facts).8Federal Lawyer. 3 Motions To Expect In Federal Civil Litigation Researching, drafting, filing, responding to motions, and waiting for court hearings and decisions significantly lengthen the timeline.
The court’s own schedule heavily influences the pace. Crowded dockets can mean long waits for hearings or trial dates. Backlogs in the civil justice system can delay even routine steps. While litigation introduces delays, the court process’s structure can sometimes clarify issues or create pressure that facilitates a settlement, though much later than initially hoped. Many cases settle during litigation, often after discovery provides a clearer view of the likely trial outcome.