Settlement Check from a Car Accident: 5 Questions Answered

Many situations around receiving a settlement check from a car accident may be unwanted, unexpected, or even happy, but still generate questions. Whether you’ve already won your claim or are barely facing the idea of initiating legal actions, it’s very possible that you have some questions about these. The good news is, My Lawyer Mark is here to answer them.

Mark stands out from any other car accident lawyer in California for its humane, empathic, and straightforward approach. Mark and his team are seasoned experts who have spent hundreds of hours in court. They understand the law and know how to win. So, if you had a car accident and want to obtain compensation for your damages, schedule a free consultation at (866) 721-5808. 

And if you want to know how a settlement check from a car accident works in California, keep reading this article!

Settlement Check from a Car Accident in California

How Are Car Accident Settlement Checks Paid Out?

If you win a car accident settlement, the defendant’s insurance company or party responsible will pay the agreed-upon amount. This is usually sent in a single payment. In California, the process of receiving a car accident settlement check involves several key steps:

Signing a Release Form

After reaching a settlement agreement, you’ll need to sign a release form that absolves the at-fault party and their insurer from further liability related to the accident. This document is essential to begin the payment process. 

Issuance of the Settlement Check

Once the release form is signed, the insurance company typically issues the settlement check within two weeks. However, this timeframe can vary based on the insurer’s internal processes. 

Attorney’s Role in Handling the Check

The settlement check from a car accident is usually sent to your lawyer. They will deposit it into a trust account and handle any necessary deductions, such as legal fees and outstanding liens, before disbursing the remaining funds to you. 

Deductions for Liens and Expenses

Before you receive your portion of the settlement, any outstanding medical bills, liens, or other related expenses are paid from the settlement amount. This ensures that all obligations are settled appropriately. 

Receiving Your Funds

After all deductions, the remaining settlement funds are paid to you. The entire process, from signing the release to receiving your funds, typically takes between four to eight weeks. However, this can vary depending on the case’s complexity and any potential delays. 

Important note: while these steps outline the general process, individual cases may vary. 

Factors such as the complexity of the case, the efficiency of the insurance company, and the presence of any disputes can influence the timeline. Consulting with your car accident lawyer can help you navigate this process more effectively and address any specific concerns on your case.

When Will I Receive My Car Accident Settlement Check?

As mentioned in the previous point, the timeline for receiving your settlement check typically ranges from four to eight weeks. Here’s a breakdown of each step’s approximate timeline:

• Settlement Agreement and Release Form: it often takes between a few weeks to several months. 
• Processing the Release Form: After signing, the insurance company processes the release, which typically takes 1 to 3 weeks. They must ensure all paperwork is complete and that both parties have complied with the settlement terms. Any errors or missing information can delay this process. 
• Issuing the Settlement Check: In California, insurance companies are usually required to issue the check within two weeks of receiving the signed release form. However, internal processes can sometimes extend this period. 
• Attorney Review and Deductions: depositing your check into a trust account, deducting their legal fees, and addressing any outstanding liens or medical bills before issuing you the remaining amount can take your lawyer between 1 to 2 weeks. 

Why is My Payment Taking So Long?

If your payment is taking longer than expected, there may be several reasons for the delay:

• Pending Release Form or Errors in Documentation: If the release form is incomplete, unsigned, or has errors, the insurance company may not process the payment. Delays often occur while waiting for corrections or missing documents.
• Insurance Company Delays: Insurance companies have internal processes that sometimes take longer than expected. This might include reviewing and finalizing the paperwork or internal administrative backlogs.
• Bank Processing Times: Banks may take several days to clear the funds after the check is issued, especially for large settlements.
• Outstanding Medical Liens or Bills: If there are unresolved medical liens or bills, your lawyer must negotiate or settle these before releasing your payment, which can sometimes take weeks or even months.
• Lawyer Review and Fee Deductions: Your lawyer may need time to deduct their fees, calculate costs, and address any other expenses. This process should be quick but can delay payments if there’s complexity.
• Complex Case Factors: If the case involves multiple parties or severe injuries, additional layers of verification might be required, especially if there are disputes over who owes what.
• Miscommunication or No Follow-Up: A lack of regular follow-ups between your lawyer, the insurance company, or lienholders can cause the process to drag on unnecessarily.

Pro Tip: To help expedite the process, respond promptly to any requests for information, work with an experienced personal injury lawyer, and maintain regular communication with your legal representative to stay informed about your case’s progress.

How Much is a Car Accident Settlement?

Car accident settlement amounts in California vary widely. Some factors that may influence the amount you receive are injury severity, property damage, lost wages, and pain and suffering. 

In 2024, settlements for minor accidents with no injuries typically range from $5,000 to $15,000. For accidents involving injuries, settlements can range from $15,000 to $80,000, depending on the specifics of the case. Severe accidents resulting in catastrophic injuries or fatalities can lead to settlements or jury awards exceeding $1 million.

It’s important to know that California operates under a “comparative fault” system. That means that even if you are partially at fault for the accident, you can still recover damages. Keep in mind that your percentage of fault will reduce your settlement. 

How is a Car Accident Settlement Calculated?

In California, car accident settlements are calculated by assessing both economic and non-economic damages resulting from the accident. Here’s an overview of the process:

Economic Damages

These are tangible, out-of-pocket expenses incurred due to the accident, including:

• Medical Expenses: Costs for hospital stays, surgeries, medications, rehabilitation, and any future medical treatments.
• Lost Wages: Income lost during recovery and potential future earnings if the injury affects long-term employment.
• Property Damage: Expenses for repairing or replacing your vehicle and other personal property damaged in the accident.

Non-Economic Damages

These compensate for intangible losses such as:

• Pain and Suffering: Physical pain and emotional distress experienced due to the accident.
• Loss of Enjoyment of Life: Inability to engage in activities or hobbies enjoyed prior to the accident.
• Emotional Distress: Psychological impact, including anxiety, depression, or post-traumatic stress disorder (PTSD).

Additional Factors Influencing Settlement Amounts

• Severity of Injuries: More severe injuries typically result in higher settlements due to increased medical costs and longer recovery times.
• Liability: For example, if you’re found 30% at fault, your settlement would be reduced by 30%. 
• Insurance Policy Limits: The at-fault party’s insurance coverage can cap the maximum settlement amount.
• Documentation: Comprehensive records of medical treatments, lost wages, and other expenses strengthen your claim.

A Car Accident Lawyer in California You Can Trust

As you can see, many factors related to your settlement check from a car accident directly relate to your lawyer’s ability, communication skills, and reliability. Hiring the right car accident lawyer can make a difference between obtaining maximum compensation or just a fraction of what you’re owed. Remember: once you sign the release form, there’s usually no turning back. 

Don’t risk your car accident settlement and hire a lawyer you can trust. Call My Lawyer Mark at (866) 721-5808 to schedule a free consultation and start working on your car accident claim.