Ever wonder what happens when you file a car accident lawsuit?
You might be in the unfortunate position where you have no choice. 6 million car accidents happen every year in the United States. That’s 16,500 car accidents each day. When the insurance company is stalling, refusing to pay a fair settlement, the only thing left is to file a lawsuit.
The problem?
Most people don’t know what happens during the legal process.
Many assume it’s too complicated, too expensive, or takes too long. Knowledge is power, so understanding the process will allow you to make educated decisions and work toward getting the money you deserve.
In this article, I’ll cover everything you need to know about the legal process involved in a car accident lawsuit.
In this guide:
- Why Filing a Lawsuit Might Be Your Best Option
- The Step-By-Step Legal Process
- How Long Does a Car Accident Lawsuit Take?
Why Filing a Lawsuit Might Be Your Best Option
The fact is, most car accident cases settle without a lawsuit. Most accidents never see the inside of a courtroom.
What happens when the insurance company is unreasonable? When they’re trying to offer you pennies on the dollar for your serious injuries? That’s when it’s time to get a team of experienced car accident lawyers on your side. Protecting your rights and getting you the maximum compensation legally available to you.
It works like this…
Insurance companies are in the business of making money, and they make money by paying out as little as possible in claims. Insurance companies have lawyers whose entire job is to find ways to lowball your settlement offer. And if you don’t have someone with your best interests in mind on your side?
You’re going to get screwed.
Statistics back this up. People with legal representation receive settlements nearly three times larger than those without. And get this, 91% of people with attorneys receive a payout compared to just 51% who go it alone.
That’s a huge difference.
When Should You Consider Filing a Lawsuit?
You need to file a lawsuit when the insurance company is playing games. The most common situations where this happens are:
- The insurer denies your claim outright. Or they’re offering a settlement that will never come close to covering your medical bills and lost wages. They’re stalling and refusing to negotiate with you in good faith. The other driver’s insurance policy limits are too low to cover your damages.
Here’s what most people don’t realize…
Filing a lawsuit does not mean settlement negotiations are over. You can settle your case at any point during the legal process. In fact, most cases do settle even after a lawsuit is filed. Filing a lawsuit just adds more pressure on the insurance company to offer you a fair amount.
Understanding the Statute of Limitations
Before I get into the process, you need to know about deadlines.
Every state has a statute of limitations for filing your lawsuit. This is the deadline for filing your case. If you miss this deadline, you automatically lose your right to compensation.
The statute of limitations is two to four years in most states from the date of the accident. But some states have shorter deadlines. Louisiana only gives one year, while Rhode Island grants up to 10 years for property claims.
You need to act quickly after an accident. Waiting too long can leave you unable to seek compensation for your injuries ever again.
The Step-By-Step Legal Process
Let’s break down exactly what happens when you file a car accident lawsuit…
Filing the Complaint
The process starts with your attorney filing a complaint with the court. The complaint details what happened in the accident, who is at fault, and what you’re seeking in damages.
The defendant needs to be served once your attorney files the complaint. Serving the defendant means the other party is formally given a copy of the lawsuit. This takes about two to three weeks.
After the defendant has been served, they have roughly 30 days to file an answer.
The Discovery Phase
Discovery is where the real work happens.
Discovery is the longest phase of the lawsuit and can take from six months to over a year to complete. Both parties are gathering information, collecting evidence, and building their cases.
Here’s what happens during the discovery phase:
The discovery phase involves both sides exchanging written questions the other party must answer under oath. Both parties request documents, such as medical records, police reports, or repair bills. Depositions occur where witnesses provide sworn testimony.
Discovery can be intense as every detail matters. Your attorney will use discovery to build the best case while the insurance company tries to find holes.
Settlement Negotiations
Most car accident lawsuits settle either during or after discovery.
Why? Because after the discovery phase, both sides have a very good idea about how strong their case is. If the insurance company’s lawyer has found security camera footage showing their client ran the red light, they know they’re going to lose at trial.
Once both sides know the strengths and weaknesses of their case, settlement offers get serious.
Your attorney will negotiate back and forth with the insurance company to reach a fair settlement figure. The average payout for car accident settlements is $30,416, although this can vary significantly depending on the injury severity.
Mediation
If the two sides are having a hard time reaching an agreement, most courts will order mediation.
Mediation is where both sides meet with a neutral third party who tries to help you reach a settlement. It usually takes place nine to 18 months after filing the lawsuit.
If mediation is unsuccessful, the case moves on to trial.
Going to Trial
A mere 3% to 5% of car accident cases ever go to trial. But if yours is one of them, here’s what happens…
The trial starts with both sides giving opening statements. Your attorney will present evidence and call witnesses. After each witness testifies, your attorney will question them first, and then the defense attorney cross-examines the witness.
After your attorney has presented all of their evidence and witnesses, the defendant has a chance to present their case. Finally, both sides give closing arguments and the jury deliberates.
Trials can last from a few days to several weeks, depending on the case complexity.
How Long Does Everything Take?
I know what you’re thinking…
“Great, so how long will this all take?”
The honest answer? It depends. Cases with straightforward liability and little-injury may finish in 6 to 9 months after you’ve finished medical treatment. Complex cases may take years.
The average car accident lawsuit takes roughly 20 months from start to finish.
Several factors can influence how long the lawsuit will take:
The most important factor is the severity of your injuries. You can’t negotiate a settlement until you have a good idea of how serious your injuries are and what your total damages will be. If liability is disputed, the case will likely take a long time. The willingness of both sides to negotiate in good faith.
One more thing…
The goal of the lawsuit is not to settle quickly. The goal is to get you the compensation you need to cover all of your damages.
The Bottom Line
Filing a car accident lawsuit is not something you should take lightly. But sometimes it’s your only choice to get the money you need and deserve.
The process follows a predictable path from filing a complaint, discovery, settlement negotiations, and potentially trial. The process can be slow, but having skilled legal representation working for you is the best way to dramatically increase your chances of a positive outcome.
Here’s what you need to know:
Act fast or you could miss your state’s statute of limitations. Most cases will settle before trial, so filing a lawsuit doesn’t mean you’re signing up for years of court battles. Having an attorney on your side means your settlement will be nearly 3 times larger on average.
Don’t let insurance companies bully you. If you’re not getting a fair settlement for your injuries, filing a lawsuit might be the exact thing you need to get what you deserve.
