Statute of Limitations for Car Accidents

Insurance companies have a rather simple business model. They sell policies that pay money when specific conditions are met. Nearly all of their income comes from policy premiums paid by customers. That income needs to cover all of the expenses of the company.

While many expenses are fixed, there is one major expense that is variable: payments on policies. Because this is a variable expense, it has a significant effect on the net profits of the insurance company. Unsurprisingly, the insurance company does everything possible to minimize this expense.

This is the reason that an insurance company might refuse to sell an insurance policy to a customer it deems risky. But even though insurance companies are particular when choosing customers, accidents still happen, and policyholders eventually make claims.

When a customer makes a claim, the insurance company can still save money if it either denies that claim or pays less than it should. To this end, the company will often look for any reason to underpay a claim. While the law does allow a claim to be denied for specific reasons, insurance companies don’t always follow the law.

If your claim has been denied, your insurance attorney will investigate the reasons for that denial. If your lawyer can prove that you were denied unfairly, they will file a lawsuit on your behalf to get you fair compensation for your claim.

This is why you need to understand the statute of limitations for car accidents in your state. The claims process is usually quite slow, and the insurance company might intentionally delay it if it intends to deny your claim. A follow-up investigation by your attorney will take additional time, even though they will attempt to complete it quickly.

All that time adds up. And when you only have two years to file a lawsuit, as is true in most states, any small delay could put you over the deadline.

The best way to avoid running out of time is to retain an attorney before you even begin the claims process. Your attorney will prevent the insurance company from dragging out the process and will act fast if you are unfairly denied.

A statute of limitations is a rather simple concept. It is a timeframe that limits how long you have to file a lawsuit after an incident that makes you eligible to sue. However, like most legal concepts, the devil is in the details.

The most important detail for a statute of limitations for car accidents is that this regulation typically doesn’t directly reference car accidents. Instead, in most states, this regulation is covered by the statute of limitations on personal injuries or property damage.

This is important because the statute of limitations might differ for each category. You could have two years to sue for damages to your car and three years to sue for injuries, for example. It is important to understand the difference when deadlines are approaching.

Another important detail is that the statute of limitations only applies to filing a lawsuit. Once the lawsuit has been filed, it could take years for a trial to finish.

Finally, there is one other subtle detail about how statutes of limitations work. In most states, the time limit starts when the inciting incident occurs. However, that time limit may be extended if you weren’t aware that you were harmed. In those cases, the time limit often starts when you become aware of the harm that was previously caused.

You will have no reason to sue an insurance company if you receive the compensation you need after a car accident. If you have an experienced attorney representing you from before you make your initial claim, they can intervene and prevent the insurance company from treating you unfairly.

Filing a Claim

Surprisingly, when a claim is denied, that denial can often be traced back to the client's initial claim. Without realizing they were making a mistake, the client accidentally made a statement that the insurance company could use to deny the claim or lower their compensation.

If you have an insurance attorney representing you from the beginning, you can avoid making that type of mistake. Your lawyer will advise you while you are making your initial claim and stop you from sharing information that would harm your case.

Investigation

Before the insurance company decides whether to deny your claim, it investigates your case. Typically, the investigator working for the insurance company is looking for evidence that can be used to deny your claim or lower the compensation you receive.

Your attorney will support your claim by performing an independent investigation. Unlike the investigator for the insurance company, your lawyer is looking for evidence that supports your claim. Once this evidence is found, it will be submitted to the insurance company to ensure that it isn’t overlooked while decisions are being made about your claim.

Settlement

Even if your claim is approved, the insurance company might offer you a settlement that is well below the compensation you should receive. Most car accident victims don’t even realize that they are being underpaid because they aren’t familiar with how insurance policies work or what payment they should receive.

Attorneys at Morgan and Morgan have decades of experience handling automobile insurance cases. We can accurately determine how much compensation you should get and prove it to the insurance company.

If the initial settlement offer is lower than it should be, we will compile the evidence and use it to negotiate a higher settlement. By negotiating a fair settlement that covers all of your expenses from the accident, we can avoid a potentially long civil trial.

While there are situations where you may be able to file a lawsuit in federal court after a car accident, the statute of limitations for those cases is based on state laws for where the incident occurred.

There are exceptions to almost every law in the country. Generally, those exceptions are extremely limited and hard to take advantage of.

The main reason you are likely to receive an exception for a statute of limitations in a car accident case is that some party intentionally and fraudulently delayed you from suing. If you want to take advantage of an exception, your attorney will need to convince a court that you deserve it based on the circumstances of your case.

A relatively simple civil trial will likely take close to a year to complete, including time for discovery. Complicated trials can potentially take years to reach a verdict, especially if there are appeals. Many trials will end more quickly because both sides will agree to settle after the trial begins.

This depends on your goals. If you want to receive as much money as possible and don’t care how long it takes, a trial verdict is more likely to maximize the damages you receive. However, if time matters, you will often receive compensation from a settlement within weeks of your car accident.

If injuries from a car accident have prevented you from working, you can receive compensation for those lost wages from the insurance company.

Every insurance company has an appeals process. If you would like to appeal, your attorney can help you navigate that process and improve your chances of having the claim decision reversed.

Unfortunately, the insurance company completely controls that process. This means there is a good chance that your claim will still be denied on appeal.

This isn’t all bad, though. If you eventually decide to sue, going through the appeals process may help your case. It shows that you attempted to work within the system before suing, and it may provide additional evidence that the insurance company treated you unfairly during the claims process.

If you have been injured in a car accident, you shouldn’t have to pay for your medical bills out of your pocket. An insurance company should pay for those bills and all other expenses resulting from the accident. If that insurance company is balking, you may need to sue, which means you will need to know the statute of limitations to take that action.

A Morgan & Morgan attorney can help you with your case and ensure you meet all deadlines. 

Contact us today to schedule a free case evaluation and get professional guidance through the claims process.