How Long Does It Take to Settle a Car Accident Claim in California?

By Peter Corrales

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Car Accidents

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Last Modified on May 25, 2024

Settling a car accident claim in California can be complex and time-consuming. If you’ve been involved in an accident, you may be asking yourself, “How long does it take to settle a car accident claim in California?” A car accident lawyer can help explain that the answer, unfortunately, is not always straightforward. The timeline can vary significantly, depending on factors such as the severity of the accident, the complexity of the case, and whether all parties are willing to negotiate.

Over 6,500 car accident injuries occur in the US every day, totaling 2.44 million for the year 2023. Car accidents are frequent in the US, and it is critical for victims to understand their case timeline.

Understanding the Settlement Process

The stages of settling a car accident claim include the following steps, each of which may or may not extend the timeline.

• Preliminary Investigation: Both parties usually conduct an investigation immediately following the accident. They use this to gather evidence related to the facts of the case, such as police reports, witness statements, and medical records. This process could take anywhere from a few days to a few weeks, depending on how straightforward the accident is and the availability of the information.
• Medical Treatment: Once the injured party has reached their maximum medical improvement (MMI), which is the point at which they have recovered as much as they are likely to, then a settlement may be reached.
• Claim: After the injured party has reached MMI, their car accident attorney can file the claim with the at-fault party’s insurance company. It can take a few weeks for the at-fault party to review the claim.

The Average Settlement

The average car accident settlement amount in California changes drastically depending on the details of each case. What you can expect to be paid significantly depends on:

• The type and severity of the injuries
• The amount of property damage involved
• The amount of lost wages
• The degree of any pain and suffering

On average, car accident settlements can be as little as a few thousand dollars, but they can also be much greater for very serious injuries.

Understanding the Car Accident Settlement Timeline in California

It can be hard to predict how long it might take to settle a car accident claim in California. Clear-cut cases without ambiguous liability and minor injuries could settle in less than a year. Conversely, more complicated claims, with catastrophic injuries or serious bodily damage, disputed liability, or even multiple parties, generally take much longer.

While every case is different, most car accident settlements follow a predictable sequence of phases. Knowing what happens at each stage, and the typical timeframes, can help you understand why some cases resolve quickly while others take longer. The key phases of a car accident claim include:

• Immediate aftermath. This phase focuses on medical evaluation, reporting the accident, and preserving any evidence you can. These early steps are vital because car accident laws control how long you have to report the crash, and even fault determinations. This phase can take days to a few weeks, and it’s important to contact an attorney as soon as possible.
• Treatment and Maximum Medical Improvement (MMI). Most cases shouldn’t settle until you reach MMI, which means that your condition has stabilized and your doctors can reasonably predict your future care needs. Injuries can change over time, and settling too early can undervalue your claim. Waiting for MMI allows for a more accurate assessment. This phase could take weeks or months.
• Investigation and evidence gathering. During this phase, your attorney gathers the evidence they need to support your claim, including the police report, photographs or video, witness statements, medical records, and documentation of your lost income. A thorough investigation strengthens the connection between the accident and your injuries, and this phase could take a few weeks to a few months.
• Demand package preparation. A demand package formally presents liability, injuries, and damages to the insurance company. It serves as the foundation for negotiations and signals that the claim is supported by evidence and legal analysis. Well-prepared demands can lead to more productive settlement discussions. This phase takes a few weeks to prepare.
• Negotiation. Settlement talks usually involve multiple rounds of offers and counteroffers. Delays can be caused by missing records, disputes over liability, low initial offers, and the willingness of the insurance companies to negotiate. Consistent follow-up and strategic timing often determine how quickly this phase progresses. Generally, it can take weeks to several months.
• Settlement paperwork and payment. Once an agreement is reached, release forms must be signed, and then payment can be issued. The distribution of funds could be delayed by medical liens, unpaid bills, or subrogation claims, making coordination vital to the process. This phase could take a few weeks to complete.

While timelines can vary, most car accident claims move through the same stages. Understanding the process can help you set realistic expectations for your car accident case and highlight why patience is important if you want to maximize your compensation. However, the timeline can change when negotiations break down, leaving you facing the final phase: litigation.

Changes to the Timeline if a Legal Claim Needs to Be Filed

When a car accident claim can’t be resolved through insurance negotiations, filing a legal claim becomes the final phase of the process, and this phase can significantly change the timeline. The process begins with filing the complaint and formally serving the defendant, followed by the defendant’s answer and any early motions they wish to file. These initial steps alone can add weeks or months to your car accident case.

The longest phase during litigation is discovery. During the discovery phase, both sides exchange written questions, request documents, and take depositions of all involved parties and any witnesses. In some cases, the defense might also request an independent medical examination, which can cause further delays.

Courts typically require both parties to participate in mediation or a settlement conference after the discovery phase, but if the matter remains unresolved, the case is scheduled for trial. Trial dates depend on the court’s schedule, and a packed calendar or a continuance can extend the timeline.

The Statute of Limitations’ Impact on the Settlement Timeline

According to the state’s statutes of limitations, you have two years from the date of the accident to bring a personal injury action against an at-fault party. If you miss the statute of limitations deadline, you could jeopardize your ability to recover compensation.

Starting the claims process early can ensure that you have sufficient time to investigate the accident, gather evidence, and negotiate with insurers, all of which increase your chances of settling your Los Angeles car accident claim.

It’s important to reach out to a personal injury lawyer as soon as possible after a car accident. An attorney can make sure that all legal deadlines are met and assist you in protecting your rights.

Insurance Company Claims

In California, insurance companies are required to adhere to a state-mandated 85-day maximum processing timeline for claims. Per the California Department of Insurance’s “Fair Claims Settlement Practices Regulations,” insurance companies must acknowledge the receipt of a claim within 15 days. Their following investigation involves gathering evidence, reviewing medical records, and assessing all damages.

The insurance company must accept or deny the claim within 40 days of receiving proof of the claim. If the claim is approved, the insurance company must issue a payment for the settlement within 30 days. These timelines can only be extended if the insurer requires additional information or if the parties are engaged in ongoing negotiations.

FAQs

What Types of Compensation Can I Receive From a Car Accident Claim in California?

In California, you can receive various types of compensation from a car accident claim. These include:

• Medical expenses (current and future)
• Lost wages
• Property damage
• Pain and suffering compensation
• Loss of consortium, which compensates for the injury’s impact on your relationship with your spouse or partner

Consulting a personal injury attorney can help ensure that you receive all the compensation you’re entitled to.

How Long Does a Car Accident Settlement Take in California?

Predicting how long it will take to settle a car accident claim in California is challenging. Clear-cut cases with minor injuries may settle within a year, while complex claims involving severe injuries, disputed liability, or multiple parties typically take much longer to resolve. Each step, from investigation to negotiation to a potential trial, affects the timeline.

How Long Does an Insurance Company Have to Settle a Claim in California?

In California, insurance companies have a maximum of 85 days to process claims, following the “Fair Claims Settlement Practices Regulations.” They must acknowledge receipt within 15 days, accept or deny the claim within 40 days, and pay the settlement within 30 days if it is approved. Extensions are allowed to acquire additional information or to engage in ongoing negotiations.

Who Determines Fault in an Auto Accident in California?

Insurance companies initially determine fault in an auto accident in California. An investigation is conducted to determine who caused the accident and to assign fault percentages to each party. An insurance company will examine police reports, witnesses’ statements, and the available physical evidence at the scene of the accident. In California, fault can be shared between the parties.

A personal injury claim can challenge this assessment. If it goes to court, a judge or jury will make the final determination of fault. Any compensation that is awarded will be based on the percentage of fault that each party is given.

Hire a Car Accident Lawyer at Corrales Law Group

Many people choose to hire a car accident lawyer after treatment begins or when insurers start pushing you to accept their first offer. Hiring a personal injury attorney is crucial for navigating the complexities of a car accident claim.

An attorney from Corrales Law Group can provide valuable guidance, negotiate with insurance companies, and ensure that you receive fair compensation for your injuries and damages. Without legal representation, you may be at a disadvantage when dealing with insurance adjusters who aim to minimize payouts.

If you’ve been injured in a car accident, contact our office for a consultation.