A car accident involves many uncertainties.

How expensive will the medical bills be?

Will it prevent you from income?

How long will it take to close the legal process?

Firstly, a car accident settlement takes approximately 14 months.

Plenty can occur between the accident date and the settlement check email. Extensive negotiations and unexpected elements can prolong the time required to receive the payout even when you follow all the necessary steps. Although not often, many victims accumulate hefty debts during that time.

An A1 auto accident attorney understands the frustration victims and their families suffer due to someone else’s negligence. Waiting over a year to receive compensation for the losses can be discouraging. Knowing what to do and expect can reduce the disheartenment. Here is an in-depth understanding of the settlement process.


Please call our office at (714) 535-5090 to schedule a consultation with one of our attorneys.

What are the Steps of a Car Accident Settlement Process?

Most insurance companies give 50 to 60 business days for the settlement. But the process initiates before contacting the insurance company. It starts with gathering evidence, such as physical and property damage photos, witness statements, police reports, and medical reports.

Step 1 – Demand Letter: Draft a demand letter stating the claim, which is the accident’s report, as well as the sustained injuries and the expenses you expect from the at-fault party. The process of car accident settlements begins upon the claimant’s sending of the demand letter.

Note: They should only send the demand letter after quantifying the total expenses they want to recover.

Step 2 – Initial Response: The insurance company will file the claim and give the next steps. While insurance companies file demand letters in the received order, most have ten days to respond.

Step 3 – Initial Review: The insurance company will review the case details and determine acceptance or rejection after the initial filing. You can file an appeal with the insurance adjuster if the company denies your claim. When they accept it, they will make an offer. Insurance companies must accept or reject a claim within 15 business days.

Step 4 – Settlement Negotiations: Usually, initial settlement offers are unsatisfactory. If you do not like it, you can start a negotiation with the adjuster until both parties mutually agree. This step can drag on for months because the insurance company gets 15 days to respond every time you submit new information. Hence, consulting with an experienced car accident lawyer is necessary.

Step 5 -Settlement Check: The company must issue a settlement check within 30 business days when all the involved parties mutually agree on the compensation. The settlement process ends here.

filling out accident statement scene

What is the Typical Car Accident Settlement Amount?

It may vary. Automobile accidents resulting in minor injuries are about $10,000 to $15,000. However, the average settlement for a car accident involving grave injuries is approximately $41,783.00. These are all estimates and do not establish the standard amount because the situations of every accident may differ.


Please call our office at (714) 535-5090 to schedule a consultation with one of our attorneys.

What is a Car Accident Settlement Calculator?

The insurance company and available coverage help determine the amount you will receive from the settlement. A standard formula helps calculate a car accident settlement. It includes the severity of the injury, the pain and suffering it caused, the current and future medical expenses it incurred, the wages lost, and the fault that resulted in the mishap.

The insurance coverage depends on the at-fault party and their insurance policy. An uninsured individual will not have enough resources to pay a judgment against them. In the case of an insured individual, their insurance policy will limit the amount they can pay.

The insurance policy discerns the limit of the individual. For instance, a business corporation will have higher limits and more coverage on their insurance policies than an individual. Most states need a minimum of $25,000 in personal car liability coverage per individual for an accident and $50,000 in total for a single accident. So, you may fail to recover the minimum of $25,000 if the accident injures three or more people.

vehicle insurance policy


These are some crucial factors you should know when searching for information on car accident settlement. We recommend you consult with a reputed personal injury lawyer if you or your loved one has suffered an accident and wants to make a settlement claim.

Useful Related Article: What Is Personal Injury Protection?

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