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General information only — not legal advice. Published by Edward & Amaury Solicitors, solicitors regulated by the SRA (no. 800525). How that affects what you read.

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Car Accident Settlement Process

United States (federal and general)Last reviewed 18 September 2026

Most car accident claims settle without a trial, following the same stages: get medical care, notify insurers, document the losses, send a demand once treatment stabilises, negotiate, and file suit if the insurer will not offer fair value. Filing suit before the statute of limitations expires protects your claim while you negotiate.

The Stages

A typical claim moves through these stages:

  • Immediately: call 911, get treatment, exchange information and photograph the scene
  • Notify your insurer, and ask the at-fault insurer to acknowledge the claim
  • Treatment and documentation: follow medical advice and keep all records and receipts
  • Demand: once your condition has stabilised, your attorney sends a demand package
  • Negotiation: the insurer responds with offers and counteroffers
  • Litigation, if needed: filing suit, discovery, mediation and, rarely, trial

Insurer Tactics to Watch

Direct Answer: Insurers often seek early recorded statements and quick low settlements, and rely on gaps in treatment or pre-existing conditions to argue your injuries are minor.

You are usually not required to give the at-fault driver's insurer a recorded statement, and anything you say can be used against you. Accepting a quick offer usually means signing a release that ends the claim for good, even if your injuries turn out to be worse. Consistent treatment and accurate accounts of symptoms protect your claim.

The Clock Does Not Stop

The statute of limitations continues to run while you negotiate: two years in California, Texas and Florida and three in New York for general personal injury. If a settlement is not reached in time, a lawsuit must be filed before the deadline, or the claim is lost. Claims against government defendants have much shorter notice rules.

Frequently Asked Questions

Do I have to give the other insurer a recorded statement?

Generally no. You must cooperate with your own insurer under your policy, but you are usually not obliged to give the at-fault driver's insurer a recorded statement, and it is wise to speak to an attorney first.

Should I accept the first settlement offer?

Usually not without advice. Early offers are often low and settling ends the claim, including for injuries that later worsen.

How long does a car accident claim take?

It depends on the injury and dispute. Simple claims can settle in a few months, while serious injuries can take a year or more, because a claim usually should not settle until treatment stabilises.

What is a demand letter?

A document sent to the insurer setting out liability, your injuries, treatment, losses and a specific amount you will accept to settle, supported by records and bills.

What happens to medical bills and liens?

Health insurers, Medicare, Medicaid and medical providers may claim reimbursement from your settlement. These are usually paid from the recovery before you receive your share.

Can I get a car accident lawyer without paying upfront?

Usually, yes. Car accident attorneys almost always work on contingency, being paid a percentage of the recovery only if the case succeeds. Ask whether the percentage is calculated before or after case costs are deducted, since that changes your net recovery, and read the written agreement before you sign.

You May Also Be Interested In

Car Accidents

Car accident claims generally

Read more

No-Fault vs At-Fault States

How your state's insurance system affects your claim

Read more

Insurance Limits & Uninsured Motorist Claims

When the other driver's coverage is too low or missing

Read more

Statute of Limitations

Filing deadlines by state, and the shorter one for government claims

Read more

Liens and Deductions

Why a settlement pays less than the headline

Read more

Where this applies: Contingency fee rules are set state by state. Check your own state's rules before acting.

Sources for this page

Every rule stated above is based on the primary sources below. Each link goes to the legislation, court rule or regulator itself so you can check it. Last verified 18 September 2026.

  1. ABA Model Rule 1.5 (Fees)

    Model, not law. Each state adopts its own version. Rule 1.5(d) bars contingency fees in most domestic relations matters and in criminal defence.

  2. Cornell LII — contingency fee
  3. Cal. Code Civ. Proc. § 335.1 (two-year personal injury limitation)
  4. Tex. Civ. Prac. & Rem. Code § 16.003 (two-year limitation)
  5. Fla. Stat. § 95.11 (limitations) · in force from 24 March 2023

    HB 837 (2023) reduced the general negligence limitation period from four years to two.

  6. N.Y. C.P.L.R. § 214 (three-year limitation)

Who wrote and checked this page

Written and published by
Edward & Amaury Solicitors (Edward & Amaury Ltd, company no. 12195443), regulated by the Solicitors Regulation Authority under no. 800525.
Legal review
This page has not yet been through independent legal review. It is written from the primary sources listed below, which you can check directly.
Review dates
Last reviewed 18 September 2026. Next review due 18 March 2027.

Fee rules change. California’s medical malpractice fee limits changed on 1 January 2023, and the QOCS rules in England and Wales changed on 6 April 2023. If you spot something out of date, tell us — we publish corrections.

Think you have a claim? Find out for free.

Reading the rules is the first step. Most claims have strict deadlines, and evidence is easier to gather the sooner you act. Tell Cross & York what happened and get a free, no-obligation review of your situation.

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Where this applies: Contingency fee rules are set state by state. Check your own state's rules before acting.

Sources for this page

Every rule stated above is based on the primary sources below. Each link goes to the legislation, court rule or regulator itself so you can check it. Last verified 2 August 2026.

  1. ABA Model Rule 1.5 (Fees)

    Model, not law. Each state adopts its own version. Rule 1.5(d) bars contingency fees in most domestic relations matters and in criminal defence.

  2. Cornell LII — contingency fee
  3. Federal Rule of Civil Procedure 54(d) (costs to the prevailing party)

    A losing plaintiff may be ordered to pay the defendant's taxable costs. There is no US equivalent of QOCS.

Who wrote and checked this page

Written and published by
Edward & Amaury Solicitors (Edward & Amaury Ltd, company no. 12195443), regulated by the Solicitors Regulation Authority under no. 800525.
Legal review
This page has not yet been through independent legal review. It is written from the primary sources listed below, which you can check directly.
Review dates
Last reviewed 2 August 2026. Next review due 2 February 2027.

Fee rules change. California’s medical malpractice fee limits changed on 1 January 2023, and the QOCS rules in England and Wales changed on 6 April 2023. If you spot something out of date, tell us — we publish corrections.