How Long Does a Car Accident Settlement Take?

A common question for people making a claim for money after being injured in an accident is, How long does it take to get a car accident settlement? The better question should be, How long does it take to win the right settlement — in other words, a full and complete settlement?

How Long Does a Car Accident Lawsuit Take in New Jersey?

Most average car accident cases in New Jersey can take anywhere from six months to two years to resolve. The duration of your case will vary depending on its specifics, including whether it goes to trial. 

The complexity of your case is the most important factor to consider when estimating how long it will take to receive a settlement. If your case involves many defendants and permanent injuries, it can take longer to reach a settlement that is fair to you. Consulting with an experienced New Jersey personal injury lawyer can help you better understand what type of timeline you may be facing. Better yet, consult with a personal injury lawyer that has been certified by the Supreme Court of New Jersey as a Civil Trial Attorney. 

The Key Stages of a Car Accident Settlement

The settlement process can be broken down into four main stages:

1. Initial Actions and Investigation: This initial phase begins immediately after the accident and involves seeking medical attention, reporting the incident to the police, and notifying the relevant insurance companies. The investigation that follows is a critical step where evidence is gathered to determine liability. This can include police reports, witness statements, photographs of the scene and vehicle damage, and medical records. This stage can take anywhere from a few weeks to several months, depending on the complexity of the accident and the availability of evidence.
2. The Demand Letter and Negotiations: Once you have a clear understanding of your damages, including medical expenses, lost wages, and pain and suffering, your attorney will send a demand letter to the at-fault party’s insurance company. This letter outlines the facts of the case and the compensation you are seeking. The insurance company will then review the demand and respond with an initial offer, which is often lower than the amount demanded. This marks the beginning of the negotiation phase. Negotiations can be a swift process, concluding in a matter of weeks, or they can extend for several months with back-and-forth communication between your legal representation and the insurance adjuster.
3. Filing a Lawsuit and Litigation: If negotiations fail to produce a fair settlement offer, the next step may be to file a personal injury lawsuit. It’s important to note that filing a lawsuit does not automatically mean your case will go to trial. In fact, the majority of car accident cases are settled before they reach the courtroom. The litigation process involves formal legal procedures such as discovery (the exchange of information between parties), depositions (sworn testimony outside of court), and pre-trial motions. This stage can significantly extend the timeline, often adding a year or more to the settlement process.
4. Settlement and Disbursement: Once a settlement agreement is reached, either through negotiation or during the litigation process, the final phase involves signing release forms and receiving the settlement check. Generally, you can expect to receive your settlement funds within 30 to 60 days of signing the final paperwork. However, this timeframe can be affected by administrative procedures and the processing times of the insurance company.

Factors That Can Delay Your Car Accident Settlement

There is no single timeline that every settlement follows. Every case has its own unique set of factors that can affect the time it takes to settle. Here are some of the most common factors that can delay your car accident settlement: 

• The severity of the injuries and your financial losses
• The number of defendants in the accident
• The extent of property damage 
• Each party’s insurance providers and coverage
• If the cause of the accident is in dispute 
• Whether or not the case goes to trial
• The skill and experience level of your attorney
• The backlog of cases in each county

Here is a more detailed explanation:

1. Severity and Complexity of Injuries

This is often the most significant factor in determining how long a settlement will take.

More severe injuries require longer medical treatment and a clearer long-term prognosis before a full and fair settlement can be determined. Cases involving serious or permanent injuries often take much longer to settle as the full extent of damages unfolds over time.

2. Clarity and Dispute of Fault (Liability)

A clear determination of who was at fault is fundamental to a swift settlement.

In cases where one driver is clearly at fault—for example, in a rear-end collision or a DUI-related accident—the settlement process is generally much faster. The insurance company has less basis to deny the claim or delay payment.

If there are conflicting accounts of how the accident occurred, or if the at-fault driver’s insurance company alleges that you were partially or fully responsible, the timeline will be extended significantly.

Comparative/Contributory Negligence: In many states, if you are found to be partially at fault, your settlement amount can be reduced. Insurance companies will often use this as a tactic to delay the process and pressure you into accepting a lower offer.

3. The Insurance Company’s Tactics and Procedures

The at-fault driver’s insurance company plays a significant role in the pace of a settlement. While some adjusters are reasonable, many are trained to minimize payouts and drag out the process.

“Delay, Deny, Defend”: This is a common strategy used by some insurance companies. They may delay responding to communications, deny valid claims without a legitimate reason, or defend against a claim in court, hoping that the financial and emotional strain will force you to accept a low settlement offer or drop the claim altogether.

The insurance adjuster may repeatedly ask for more documentation, some of which may be unnecessary, as a way to slow down the process.

They may also offer an initial settlement significantly lower than what your claim is actually worth. The back-and-forth negotiation process that follows can take several months.

Sometimes, delays are simply due to the fact that the assigned insurance adjuster has a heavy caseload and is not able to give your claim the immediate attention it deserves.

4. The Value of the Claim

As a general rule, the higher the potential settlement amount, and the bigger the accident, the longer it is likely to take. High-value claims, especially those involving severe injuries, significant lost wages, and a high number of defendants, will be scrutinized much more carefully by the insurance company. They will likely conduct a more detailed investigation and may require more extensive proof of damages. For larger payouts, the settlement may need to be approved by multiple levels of management within the insurance company, which adds time to the process.

5. The Need for Litigation

While most car accident claims are settled out of court, filing a lawsuit becomes necessary if the insurance company refuses to make a fair offer. If a lawsuit is filed, the timeline is immediately extended, often by a year or more. The litigation process includes several time-consuming steps:

• Discovery
• Motions
• Court Schedule

It’s important to remember that even after a lawsuit is filed, settlement negotiations can, and often do, continue. In many cases, the pressure of an impending trial date can motivate an insurance company to finally offer a fair settlement.

One thing to remember is that New Jersey’s statute of limitations on personal injury suits gives injured adults two years from the date of a crash to file a lawsuit. This deadline will affect your case even if you never actually file suit. And if you were injured because of the negligence of a public entity such as a city, county, state, or even police, fire department, sanitation board, or education worker, there is only a 90-day limit to file a Notice of Claim. 

Your ability to threaten a lawsuit is your primary bargaining chip during settlement negotiations. And that ability is taken seriously when your claim is brought by a law firm of highly regarded injury lawyers. Our car accident attorneys can help keep your case on track and demand the full compensation you deserve before it’s too late.

Talk to Our Experienced Car Accident Attorneys in New Jersey Today

An experienced injury attorney can fight on your behalf the large and powerful insurance companies that are out to minimize what you are entitled to as your settlement. Weak lawyers often settle cheaply because they may not have the time, money, or expertise necessary to win what you deserve. Quick settlements often settle for a fraction of what a case is truly worth. Don’t hesitate to contact Davis, Saperstein & Salomon, P.C. for a review of your unique case and the factors affecting your settlement.

So the answer to your question of how long it will take to settle your personal injury claim is there is no one-size-fits-all answer. However, an experienced attorney should be able to give you a better idea of how long it might take. After an accident, speak with a New Jersey car accident attorney to protect your rights and have a knowledgeable professional handling settlement negotiations.

At Davis, Saperstein & Salomon, P.C., our skilled auto accident attorneys in New Jersey have considerable experience helping injury victims recover the compensation they need and deserve. Contact us today to get started with a free consultation and find out how long your case could take.