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 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. 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.

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.

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.

Claimants can respond to denials by submitting additional documentation or presenting legal arguments. The adjuster can withdraw a denial and accept a claim when they are persuaded by the additional information.

If the adjuster persists in the denial, the claimant may need to pursue litigation or arbitration, depending on whether they are the policyholder or not.

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 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.

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.

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 lawyer referral.