Patience and accident settlement checks simply don’t belong in the same sentence. After all, it’s pretty hard to be patient when your accident bills are pouring in. You pay your insurance premiums on time so shouldn’t this count for something? Unfortunately, the answer is a resounding no.
The average timeline to receive an accident settlement check can be as little as a week or two. You may also be waiting months or even over a year before your accident claim is finally settled. So, what goes into determining when an insurance claim check arrives? Surprisingly, a lot can impact your injury claim’s timeline including a few Texas state laws.
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Timeline to Receive Your Check After Settling Your Accident Claim
You’ve finally made it through the claim process. Your paperwork and supporting evidence have been submitted. You’ve even made it through negotiations with the insurance adjusters and agree on your claim’s value. Doesn’t this mean the insurance company just hands over the check?
After all, this is how it seems to work in commercials. Guess what, this rarely applies in real life. You probably have a better chance of hitting the winning lottery numbers than leaving negotiations with an insurance settlement check. There’s still a process to go through and it can take a bit of time.
Texas Law Affects Settlement Check Timelines
Do you ever feel like the law seems to be working against you? This may be one of those times when this isn’t the case. Texas gives insurance companies five business days to send out settlement checks. So, if your claim is settled on a Friday the check should be in the mail by the end of the following week.
Saturday and Sunday don’t count as business days, and this also applies to all federally-recognized holidays. Before you start monitoring your mail, you may not get the actual check in a few business days. A few other processes can add delays.
Signing the Agreement and Release Forms
Chances are, the insurance adjuster has these forms tucked away during negotiations. The insurance company is always hopeful you’ll settle your claim before it ends up as a lawsuit in civil court. After reaching an acceptable settlement number, you need to sign a couple of forms. Skipping this process essentially puts your claim on indefinite hold.
The agreement form simply states you’re accepting the insurance company’s offer. Once this form is signed, you can’t change your mind so give it a bit of thought. Make sure the settlement is enough to cover all of your damages. If so, you also need to sign a release. This is a legal document absolving the insurance company of any additional claims relating to the same accident.
Your Check is Mailed to Your Attorney
There’s a slight chance your settlement check will go to you but most end up at the attorney’s office. Why does your attorney get your settlement check? Sometimes it’s the law. If your personal injury attorney is working off of contingency fees, legally they get first dibs on your settlement check.
If you’re not sure what contingency fees are it’s simply a payment structure personal injury attorneys commonly offer. Instead of paying upfront or hourly fees, your attorney is only paid if they successfully settle your accident claim. If your claim is successful, your lawyer is entitled to receive a percentage of your settlement. How much your lawyer gets depends on your contingency fee agreement. Most accident attorneys charge anywhere from 20% to 35% of your settlement check. Sending the check to your attorney ensures your legal costs are taken care of.
Your Settlement Check Goes Into Escrow
Don’t panic, your attorney isn’t going to cash your check, at least not yet. The check goes into an escrow account until you and your attorney have time to schedule a meeting. Since you’re probably anxious to get your hands on your insurance settlement, this should only add a day or so to your timeline.
Legal Costs are Deducted
You’re getting closer to watching your insurance settlement check hit your bank account. You’re starting to feel the stress over unpaid accident bills slowly getting a bit better. During your meeting with your personal injury attorney you’re given an itemized bill for legal services. Read through each item and make sure it’s covered in your contingency fee agreement.
On the whole, personal injury attorneys stick with the contingency fee agreement. However, every once in a while you run across a less-than-ethical accident attorney. Once you agree with the deductions, your attorney takes their share. We should also note attorney fees may not be the only deductions. If you have any liens like those from medical providers, these are also taken directly out of your insurance settlement check.
Your Insurance Check is Finally Issued
Waiting a week or two to finally get your hands on your insurance check can be excruciating. However, the wait is finally over and you can start getting your life back on track after the accident. Your attorney will issue a check for the remaining settlement amount. You can go with an automatic deposit or request an actual paper check.
Typically, automatic deposits in bank accounts are the preferred method. This tends to be a little safer, you don’t have to worry about losing the settlement check. However, if you just need to feel the settlement check actually in your hands, your lawyer will probably oblige.
Settling a Personal Injury Claim Usually Takes Longer Than Receiving the Check
You’re pretty much looking at smooth sailing once you settle with the insurance company. From signing the agreement and release forms to walking away with the settlement check, you’re usually looking at a week or two.
What can really drag out the process is getting to the settlement stage. From proving your accident claim to sitting through numerous rounds of negotiations, you may be looking at months until you finally reach an agreement. Working with a personal injury attorney can help speed up the timeline and it’s often more affordable than you may think.
