Having patience after being injured in an accident isn’t easy, and resulting frustration and anxiety are common feelings. You’re watching medical costs and other expenses piling up, wondering how you’re going to cover your damages.
You filed a claim with the at-fault party’s insurance company and successfully navigated the process. Your injury claim is approved, so where’s your settlement check? The timeline to receive a settlement check can vary, depending on several factors.
Factors Affecting Settlement Check Timelines
Before you receive a settlement check from a personal injury claim, there’s a process to go through, and this process can affect the timeline for settling your claim. Some of these factors may apply to your claim:
- The willingness of all parties involved in your claim, typically you and the insurance company, willingness to reach an agreement everyone can live with. It usually applies to the negotiation phase where everyone sits down and tries to reach a fair agreement.
- The amount of time it takes you to recover from your injuries. You don’t want to file a personal injury claim if you’re still going through medical treatment. If you settle your claim before treatment is finished, you may be stuck with additional expenses. Even if you require additional care, you can’t file another claim after settling with the insurance company.
- Personal injury claims involving serious or life-altering injuries usually take longer to settle.
The type of personal injury claim can also affect the time it takes to settle. Some types of injury claims like product liability or medical malpractice are often complex and require more time to prepare.
Even the evidence supporting your claim can affect the timeline, especially if comparative negligence is involved. It may mean you’re also responsible for the accident, and this can drag out your injury claim.
How Long Does It Take to Receive a Check After Settling a Claim
Congratulations, you’re almost at the end of the process. You’ve been through negotiations and possibly even a trial.
The insurance company has agreed to pay your claim and you’re happy with the offer. So, does this mean the insurance adjuster hands over a check? Unfortunately, this isn’t how the process works; there’s still a bit of a wait before the settlement check is deposited in your bank account.
Signing the Agreement
Shaking hands and even a verbal agreement isn’t enough. You and the insurance adjuster must sign a written agreement. Once you sign the agreement, you’re almost ready to accept the settlement check.
However, before signing the agreement, make sure that you read the contract carefully. The agreement not only releases your settlement funds but also removes the insurance company and other parties from any liability for your accident. In other words, when you accept the settlement offer you’re giving up your right to file for additional compensation for the same accident.
Waiting for the Check to Clear
So, the agreement is signed and you’re still waiting for the check. Don’t worry, you’re almost finished. The insurance company has 5 business days to issue a check after reaching an agreement. Remember, these are business days. If you reach an agreement on Friday, the five-day countdown may not start until the following Monday. Holidays can also delay the process.
The insurance company sends the check to your personal injury attorney, who deposits it in an escrow account. The check sits in the account until it clears the bank. How long this takes depends on the bank’s processes and the size of the check. No one can touch the settlement check until it clears the bank.
Payment of Fees and Liens
You’re almost ready to celebrate. The check has finally cleared the bank. You should be in contact with your attorney and have a meeting scheduled. However, it’s not quite time to pick up your settlement check. Your attorney has a legal obligation to pay any medical liens and expenses. Your attorney will also deduct their costs like contingency fees from your check.
If your attorney doesn’t give you a detailed account of all the payments deducted from your settlement check, ask for one. The total deductions on the list should match the remaining amount of your settlement.
Pick Up Your Check
During the final meeting with your attorney, you’ll review any deductions from your settlement. You’ll also sign a release form before your attorney hands over your check. You can either walk out of your attorney’s office with the check in your hands or have it deposited in your bank account.
Your Settlement Check Can Be Delayed
Most settlement checks from personal injury claims arrive at your attorney’s office within six weeks of signing the agreement. However, some insurance checks can take a little longer to arrive.
For example, personal injury claim settlements over 6 figures often take longer. The insurance company will want to verify larger settlements before issuing a check. Some accident victims prefer annuity payments to a lump sum.
Annuity payments can make it easier to manage your settlement, especially larger ones, but they can also drag out the timeline. The insurance company and your attorney will need to work out the details of when and how much you receive with each annuity payment.
Accident victims with severe injuries may need to take out a medical lien to help them stay financially afloat while they’re waiting for their insurance settlement check. Your attorney is obligated to pay these liens before handing over your settlement.
Sometimes, taking care of the outstanding medical debt can drag the process out. Your attorney may even be trying to negotiate a lower lien payment and this can also impact the timeline.
Some Things Are Worth the Wait
On average, you should expect to wait anywhere from four to six weeks before you receive your settlement check. However, this timeline only applies to the period after signing the agreement with the insurance company.
Overall, the claim process can take several months from the time you file with the insurance company until receiving your personal injury settlement check.
