An overview of the car accident billing process (2023)

There is so much uncertainty surrounding a car accident injury. Can you afford adequate medical care? Need to be off work for a few months? Most importantly, how long does it take to settle a car accident claim? On average, auto accident claims settle claims within14 Fun.

A lot can happen between the date of a car accident and the arrival of a settlement check in the mail. Even when car accident victims follow the exact steps outlined by the insurance company, lengthy settlement negotiations and other unexpected factors can increase the time it takes to receive a payout. It's not uncommon for hundreds or even thousands of dollars in debt to accumulate during this time.

atDavid Bryant Law, we understand how frustrating it can be to suffer personal injury caused by another driver only to have to wait more than a year to get paid for your medical bills and lost wages. Here's what to expect from car accident handling and how an experienced car accident attorney can help you every step of the way.

Stages of the car accident settlement process

The majority of insurance companies allow 50 to 60 business days for the car accident claim process. However, the process begins long before you even contact the insurance company. The first step is to collect the appropriate evidence for your case, including medical records, police reports, witness statements, and photos of all property and property damage.

Stage 1: Letter of Formal Notice

Once you have the necessary evidence, you must write a collection letter detailing your claim (your account of the accident), the injuries you sustained in the accident, and the accident costs you wish to recover from the culprit are drivers. Only send the collection letter for your claim for damages if you can quantify the total costs owed to you. The car accident claim process really begins as soon as the claimant (the person filing the insurance claim) sends in their claim letter.

Phase 2: initial reaction

After receiving the reminder letter, the insurance company will make your claim and tell you the next steps. Collection letters are submitted in the order in which they are received, but most insurance companies have 10 business days to respond.

Stage 3: Initial review

After the initial registration, the insurance company will review the details of your case and decide whether to accept or deny your claim. If this is denied, you can probably appeal to the insurance adjuster. If accepted, the insurance company submits a comparative offer. Most insurance companies have 15 business days to accept or deny an insurance claim.

Phase 4: Settlement negotiations

If you are not happy with your initial offer, you can enter into settlement negotiations with an insurance adjuster until all parties agree. This phase can take at least a few months, especially since most insurance companies are given an additional 15 business days to make a decision each time the applicant submits new information.

Phase 5: Accounting Verification

If all parties agree on compensation, a settlement check must be issued within 30 business days. At this point, the billing process ends.

When should you negotiate or file a car accident lawsuit?

Some accident victims are so tired of wondering how long it takes to settle a car accident claim that they wonder if they should just file a car accident lawsuit instead. If you are unsure whether to proceed with your insurance claim, it is important to know that theMajority of personal injury cases, like car accidents, are settled out of court – and only 3% make it to court.

There are a few situations that justify filing a car accident lawsuit, including:

1. The original personal injury claim was denied.
2. The driver at fault did not have auto insurance coverage or was underinsured.
3. The settlement offer is significantly less than what was stated in the letter of formal notice.

In most cases, filing an auto accident lawsuit will only add further delays to the settlement process. If you decide to sue the at-fault driver, you must write a complaint (a longer version of your collection letter) and file it with your county or district court. The culpable driver must respond to the complaint and list any objections or counterclaims.

From here, your case is placed on a trial schedule that sets deadlines for key stages of litigation such as discovery, filing, and testimony. These phases can last several months as each party has time to gather evidence and testimonies. After these stages, if the case does not reach a settlement agreement through mediation, the lawsuit will go to court.

If this process seems time consuming, that's because it is. It's often much quicker to just stick with settlement negotiations, especially if you're approaching the insurance company with a trusted attorney by your side. Proper representation can help you avoid a car accident lawsuit.

3 factors that determine the billing process

Although the settlement process should take approximately 60 days from initial settlement request to final settlement review, certain factors may delay the process. Here are the three factors that affect how long it takes to reach an agreement.

1. Maximum Medical Improvement (MMI)

A claim for personal injury cannot be filed until an injury has fully healed or a doctor determines that the victim has reached maximum medical improvement (MMI). In cases of car accidents, MMI refers to the level at which a victim's condition cannot be further cured. In other words, a victim who achieves MMI will improve no more than they did at that point, even with additional medical treatment.

The reason car accident victims have to wait for a doctor to decide they have achieved MMI is because it is difficult to estimate the total cost of injury when they are still in active recovery. For example, if you file a personal injury claim for serious injuries in February, but discover that you need surgery in March, the original expense amount listed in your collection letter would be very inaccurate.

How long it takes to reach MMI depends on the extent of your injuries. If you have suffered serious injuries such asDamage to internal organsor severely fractured bones, it may be several months or even a year before a doctor declares that you have achieved MMI. If you have sustained minor injuries such asmuscle sprain, you could reach MMI in a few weeks or a few months.

2. Calculation of the total costs

An insurance claim cannot be submitted until the victim has calculated their total cost. expenses in oneAuto Accident Handlingare referred to as damages. Compensation covers any expenses or debts incurred as a result of the accident, including medical bills and vehicle repair costs.

Because a car accident settlement is based on the monetary amount listed in the collection letter, a collection letter cannot be sent until all damages have been recorded, documented, and added to the total claim. Delays in medical treatment or vehicle repairs can significantly delay this process.

3. Gathering of Evidence

A proper collection letter must include all evidence from a car accident. Gathering evidence can take time, especially when medical records or police reports are requested. The longer it takes to get the right proof, the longer it takes to pay out.

Once the insurance company receives your collection letter, they may also request additional evidence such as additional photos of the damage or witness statements. This additional evidence may be required to support your claim. Evidence requests can add to weeks of delays in the process.

Other elements to consider when determining your settlement timeline

If you're curious about how long it takes to settle a car accident claim, it's important to know that there are a few other elements that can impact the overall settlement timeframe. Take a look at some other factors that can affect the time it takes to get a car accident settlement.

• Liability Disputes: The insurance company does not believe you have a valid claim or doubts that the other driver is responsible for your injuries, so you must resubmit your claim or file a lawsuit.
• Negligence Laws: A debate about who was at fault or whether both parties were negligent can make a claim for damages difficult.
• Minimum Compensation: A drastically lower settlement offer or minimal compensation for serious injury may require extensive evidence gathering to defend the claim.
• Statute of limitations: The statute of limitations for a car accident refers to the time a victim has to file a lawsuit. In Kentucky, you have two years from the date of the accident (or the last no-fault payment) to file the claim.

What if the insurance company is in no hurry to regulate?

There is always a chance that the insurance company is in no hurry to regulate itself. Each time an insurance adjuster requests additional information from a claimant, the entire settlement process can add another 10 to 15 days – meaning a skilled adjuster can request weeks of information.

If the insurance company is in no hurry to settle up, it's important to speak to a qualified personPersonal Injury Attorneyas soon as possible. An attorney can advise you on how to proceed with gathering evidence or documents and even speak to the insurance adjuster on your behalf to reduce the time it takes to obtain a settlement offer.

How Can Working With a Car Accident Attorney Affect Your Schedule?

So how can work with acar accident attorneyreally affect your schedule? While a car accident attorney can't control how long it takes for the insurance company to make an offer, they can ease the psychological stress and financial drain in the meantime. Rather than rushing the process to get an unfair settlement amount, an attorney can help with medical liens and other medical bills.

An experienced car accident attorney has spoken to insurance adjusters dozens of times in the past. They've filed hundreds of warning letters and completed the tedious paperwork required to collect evidence. You've finally learned the most efficient ways to get a payout for car accident injuries so you can heal while they work to speed up your turnaround timeline.

Common types of car accident compensation

As mentioned above, the expenses in a personal injury case are known as damages. These damages are classified as either economic damages or non-economic damages. The combined sum of both types of damage listed in your claim equals the total value of your case.

economic damage

Economic damages refer to any costs or losses related to the accident. Economic damage, also known as special damage, must be a specified dollar amount, e.g. B. a medical bill or vehicle repair costs. These damages are aimed at repaying a victim for any costs incurred or monies lost.

Examples of economic damage from car accidents include:

• Medical expenses, including ambulance trips and surgeries
• Home care costs such as B. a house nurse or special equipment
• Property damage costs, such as vehicle repairs and rental fees
• Loss of wages, including sick leave and vacation days
• Loss of earnings and loss of future earnings

Non-economic damage

Non-pecuniary damage is non-monetary damage caused by the accident. Also known as general damages, noneconomic damages in a personal injury claim don't have a specific price tag. They are intended to compensate an accident victim for the general damage caused by the accident.

Examples of non-economic damages in car accidents include:

• mental agony
• pain and suffering
• Loss of the company or consortium

How an expert can help you prove your damages were caused by someone else's negligence

Claims for personal injury such as car accident injuries will be decided on the basis of negligence. A car accident will only be approved if the insurance company agrees that the at-fault driver acted negligently or with disregard for other road users. The only problem is that most drivers admit no fault, making the question of negligence a he-said-she-said problem.

A personal injury attorney will review your auto accident claim to determine exactly how to prove someone else's negligence. You will begin extensive evidence gathering to collect police reports, security camera footage, eyewitness testimonies and expert testimonies to provide factual evidence that your damages are due to the guilty driver's actions.

Let David Bryant Law help you settle your car accident claim

Have you been injured in a car accident and are frustrated with the settlement process? You're not alone. Contact a trusted law firm like David Bryant Law for a free case assessment to learn what steps to take next. An accident attorney can offer legal advice to expedite insurance negotiations and help you get your settlement check sooner.

Every accident victim deserves a fair settlement process.Contact us todayfor a free consultation.