How Long Does It Take To Settle A Car Accident Claim In California?

Key Steps in the California Car Accident Settlement Process

Car insurance policies are the primary resource for compensation after auto accidents in California. State law requires all vehicle owners to carry auto insurance with bodily injury liability and property damage liability coverage.

These coverages pay third-party losses resulting from the insured driver’s negligence. For example, you can file an injury claim with a distracted driver’s insurance company after a collision. After accepting your claim, the insurer compensates you for your financial costs and pain and suffering.

Many owners also buy optional first-party coverage, such as collision or medical payments coverage (medpay). These coverages pay the insured driver for their losses, regardless of fault. For example, if you accidentally back into a light pole, you can file a claim under your collision coverage to cover the repair costs.

In either situation, you begin your case by filing an insurance claim. Here’s an overview of how the claims process works:

1. You File a Claim With Your Insurer

The claim explains what happened and the losses you incurred. You include “proof of loss,” such as medical records, wage statements and repair estimates, to support your claim.

2. The Insurance Company Investigates

An adjuster investigates your claim by reviewing the documents and speaking to the insured driver. If there were other drivers involved, the adjuster may ask to speak to them, too.

3. The Adjuster Makes a Decision

The adjuster will decide whether to accept or deny the claim based on this investigation. If the claim falls within the scope of the policy, the adjuster will offer a settlement to the claimant. If the claim falls outside the policy, the adjuster will issue a claim denial.

4. Disputing Denied Claims

It’s important to understand that if your claim is denied, that doesn’t mean you have no hope of recovering compensation. If you believe the denial was unjust, it’s worth reaching out with additional information.

Some adjusters will approve previously denied claims based on new information. Even if your adjuster stands by the denial, you may file an appeal. It’s wise to involve an attorney at this stage. If the insurance company continues to deny or underpay a claim, you may need to take legal action.

Legal Deadlines That Could Shorten or Extend Your Case

Under California insurance regulations, insurers have 40 days to accept or deny a claim after receiving proof of loss. However, the insurer could delay this deadline in two ways.

First, the period does not start until the insurer has the documents needed to investigate the claim. The adjuster could blame the claimant, their lawyer, their doctor or their auto repair shop for not supplying documents to prove the insurer’s liability for the claim or the losses the claimant incurred.

Thus, rather than receiving a claim decision within 40 days of the filing, you might only receive a request for additional information. The 40 days do not start running until you supply the requested documents.

Second, the insurer can extend the period in 30-day increments if it requires additional time to investigate. This extension process is not an excuse for insurers to endlessly delay a claim. Under the regulations, insurers must diligently investigate the claim and cannot unreasonably persist in seeking information immaterial to the case.

Average Timeline for Settling a Claim in California

In many cases, auto insurers obey the 40-day deadline for accepting or denying claims. After this point, the total time for settling your claim will depend on you and your California car accident lawyer.

Specifically, once the adjuster offers a settlement, the insurer has satisfied the 40-day deadline. If you and your lawyer choose to reject the settlement and negotiate for a better payout, your settlement will take longer.

Moreover, there is no legal or regulatory limit to the time insurers can negotiate. Even when the initial offer comes before the deadline expires, you should anticipate that reaching a mutually agreeable settlement will take additional time.

Thus, you should anticipate that your car accident settlement will likely take at least 40 days and may take weeks or months longer as you negotiate with the adjuster.

Main Factors That Influence Settlement Duration

There are factors that can influence the time to reach a settlement, including the following:

Strength of Your Case

To prove liability for a third-party claim, you must prove the following four elements of negligence:

• Duty of care
• Breach of duty
• Losses
• Causal link between the breach and the losses

The key element in most cases is the breach of duty. If you have strong evidence showing that the other driver did something unreasonably risky, the insurer may settle quickly. Unclear evidence may delay a settlement.

Whether You Bear Any Blame

Under California law, a negligent crash victim loses a portion of their compensation in proportion to their percentage of the blame. For example, if you are 15% at fault, you can only get compensated for 85% of your losses. If you contributed to the cause of your crash, the settlement negotiations may take longer.

Common Reasons Why a Car Accident Settlement May Be Delayed

Ideally, you’ll be able to recover your car accident settlement as soon as possible. However, factors like these often cause delays:

Liability Disputes

If insurers for both sides can’t agree on fault, the issue might need to be decided in court.

Incomplete Documentation

If the adjuster has to reach out to you for additional documents, it could significantly extend the claim’s timeline.

Lengthy Investigations

Complex and especially serious accidents often take much longer for insurers to investigate.

Ongoing Medical Care

Most insurance companies want to take time to fully understand your injuries (and the total cost of treatment) before offering to settle.

What to Do Immediately After a Car Accident to Avoid Delays

Any act that weakens your case can delay your settlement. Examples include the following:

• Admitting fault at the accident scene
• Waiting to see a doctor
• Failing to follow your doctor’s treatment plan

When these events happen, the insurer must investigate to determine whether you were responsible for your injuries rather than the insured driver.

Average Settlement Amounts in California Car Accident Claims

The typical car accident settlement in California is between $5,000 and $30,000. The average is around $21,000.

While knowing average settlement amounts can be helpful, the circumstances of your case are more important than state averages when determining the value of your case.

The best way to get an idea of your case’s worth is to speak with a car accident lawyer. An attorney will weigh factors like these when estimating the value of your potential settlement:

Total Medical Costs

Higher medical bills (both present and future) can greatly increase the amount of your settlement.

Lost Income

If your injuries were serious enough to lead to significant time off work, your settlement may be higher. Injuries that cause permanent disabilities can result in substantial settlements.

Pain, Suffering, and Other Intangible Losses

Economic damages aren’t all that matters in a car accident settlement. People whose injuries have a major impact on their quality of life often recover more compensation.

Contact ConsumerShield to Discuss Your Rights Against Car Insurance Companies

How long does it take to settle a car accident claim in California? The precise timeline depends on your case. ConsumerShield can help you find a lawyer to explain how long your claim may take. Contact us for a free case review and a attorney referral.