Car Accident Settlement Timeline

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No two car accident cases are alike. Some claims resolve in a matter of weeks or months, while others remain pending for years after the accident that generated them. Although no honest car accident attorney will give you a guaranteed time frame, it is possible to identify the factors that most often affect how long a claim takes. 

From there, you can apply your case to these factors to get a ballpark estimate of how long it may take you to settle your Florida car accident case.

Florida’s No-Fault Auto Accident Insurance System

Florida is one of about a dozen US states that apply a ‘no-fault’ auto insurance system to car accident injuries. Unless your injuries are serious, it generally doesn’t matter whose fault the accident was. Your own PIP insurance will pay your claim up to policy limits. 

The tradeoff here is that unless your injuries are serious or another exception applies, you generally cannot sue the at-fault driver. This inability to file a lawsuit can limit your recovery because you cannot seek non-economic damages or punitive damages.

As noted, however, there are various exceptions to the no-fault rules. An Orlando car accident lawyer can help you understand whether an exception may apply and what your options are during a free case evaluation.

Mandatory Car Insurance

Florida requires most drivers to purchase the following minimum auto accident insurance:

• $10,000 in personal injury protection (PIP) insurance; and
• $10,000 in property damage liability (PDL) insurance.

Remember that although PIP insurance is no-fault, PDL insurance is fault-based. You can pursue the at-fault driver for the damage they do to your vehicle after any accident.

How PIP Insurance Works

Following is a rundown of how PIP insurance both protects you and limits your options:

• Emergency Treatment: Florida PIP insurance pays up to $10,000 in medical coverage, no matter who is at fault, when a qualified provider determines you have an emergency medical condition. Without that determination, coverage is more limited.
• Medical Expenses: PIP covers 80% of your “necessary and reasonable” medical expenses. Coverage is broad, and it includes doctor’s visits, surgery, X-rays, reconstructive dental services, and rehabilitation.
• Lost Wages: PIP only covers 60% of your lost wages while you are in the hospital and recovering at home.
• Death Benefits: PIP provides a $5,000 death benefit.
• Household Services: PIP covers reasonable expenses for household services you would have performed had you not been injured. This benefit can include childcare or housekeeping.

You must provide evidence for all of these expenses, so keep medical bills, wage records, and receipts organized.

PIP Resolution Timeline

Below is a summary of the applicable deadlines for PIP coverage: 

• You must seek medical treatment within 14 days of your accident to remain eligible for PIP benefits.
• Absent complicating factors, insurers must pay PIP benefits within 30 days after they receive your written notice of the loss and the amount of your claim.
• If you continue to receive medical treatment, you can submit bills to your PIP insurer. PIP must pay your invoices within 30 days of each bill, up to policy limits.
• Rejection or Reduction of Your Claim: If your PIP insurer disputes any part of your claim, they must notify you within 30 days after they receive your written claim. They must state the reason for their rejection or reduction. 
• Dispute Resolution: You may be able to resolve a dispute through mediation, arbitration, or litigation, depending on your policy and whether your insurer agrees. Courts often expect the parties to try mediation before pursuing litigation.

This particular timeline does not apply to the portion of your case that qualifies for an exception to the no-fault rules, which may allow you to potentially recover more compensation.

“Serious” Injuries

If your injuries are serious, you can exit Florida’s no-fault system and sue the at-fault party. Doing so may allow you to pursue damages beyond your PIP benefits, including non-economic damages such as pain and suffering. There are other circumstances where you can at least partially step outside the no-fault system as well, such as if your losses exceed your policy limits.

Florida law defines ‘serious injury’ as one of the following:

• Significant and permanent loss of an important bodily function;
• Permanent injury within a reasonable degree of medical probability;
• Significant and permanent scarring or disfigurement; or
• Death, which may give rise to a wrongful death claim

One downside of a serious injury claim in a Florida car accident is that you have to prove the other driver was at fault. This could delay settlement.

Bodily Injury Liability Insurance

Florida does not generally require its drivers to purchase bodily injury liability insurance. That means if someone causes an accident that injures you, they might lack bodily injury insurance. 

This could leave you with only $10,000 in PIP insurance resources, which may not be nearly enough if you are seriously injured. Here are some of the ways you can protect yourself in advance by purchasing additional insurance:  

• Florida “MedPay” insurance. MedPay can cover costs that PIP does not cover, such as the remaining 20% of medical expenses, co-pays, and deductibles. Some carriers offer coverage that exceeds the $10,000 PIP insurance limit. 
• Uninsured/underinsured motorist insurance, which may help when the at-fault driver has no insurance or too little.
• Umbrella insurance, which may provide extra coverage above your other policies, depending on the policy terms.

Coverage bought after an accident generally will not apply to that accident, so you have to purchase it in advance.

Factors That Can Cause Delay

Below is an abbreviated list of some of the other factors that can cause delay in processing a car accident settlement in Florida:

• Claiming non-economic damages, which are often harder to value and negotiate.
• Dispute over liability. Your claim might devolve into arguing over comparative fault. Under Florida’s modified comparative negligence rule, a driver found more than 50% at fault is generally barred from recovering damages in a negligence claim.
• Filing a lawsuit. 
• Pretrial discovery (if you file a lawsuit)
• Mediation
• Drafting a settlement agreement
• Disbursement of funds.

Throughout this process, don’t forget about the statute of limitations deadline. For most car accident negligence claims, this is two years from the date of your accident, and it applies to any lawsuits you may file. There are exceptions to this time limit, but only in limited circumstances.

Sue or Settle?

Settling generally takes less time than suing. Nevertheless, your most time-efficient strategy might be negotiating, waiting for a reasonable settlement offer, and then suing if the defendant balks.

Filing a lawsuit gives you access to formal evidence-gathering tools that can sometimes encourage a reluctant defendant to offer more reasonable settlement terms. As mentioned above, filing before the deadline also preserves your right to pursue the claim in court.  

An Orlando Car Accident Lawyer Can Help Move Your Settlement Forward

A skilled car accident lawyer can apply appropriate pressure on the opposing party to encourage timely resolution of your claim. And that doesn’t necessarily mean you’ll have to settle for less. 

Sometimes, it might mean filing a lawsuit, but even then, many claims settle before trial. Our Orlando personal injury lawyers at Norden Leacox Accident & Injury Law offer free consultations so you can make informed decisions about your case. Contact us today to receive help, or call us at 407-801-3000.