After a car accident, you often have to deal with medical bills, pricey car repairs, and lost wages.
A car accident settlement is meant to cover these damages without going through a drawn-out court case, saving you time, money, and the hassle of a legal battle.
But the process to get your settlement isn’t always a walk in the park either.
Insurance companies will try to undervalue your damages to save a few bucks. That’s why you should always consult a car accident lawyer before signing on the dotted line.
They’ll ensure the settlement truly covers what you deserve, and you’re not left shortchanged.
They’ll guide you through the car accident settlement process every step of the way and make sure that you’re not left shortchanged.
In fact, we’ll take you through the entire process below so you have an inkling of what to expect. We’ll also tell you how long the settlement process might take and how exactly having a lawyer in your corner will help.
This Article Contains:
- What Is the Typical Car Accident Settlement Process in Texas?
- How Long Does a Car Accident Settlement in Texas Take?
- How Does Having a Lawyer Simplify Your Car Accident Settlement Process?
Texas follows an at-fault system. Meaning if you’re injured in an accident and the other driver is at fault, you can either file a claim with their insurance or directly take legal action against them.
In line with this system, Texas requires all drivers to have minimum insurance coverage to ensure compensation for all accident-related damages.
For a successful settlement negotiation with the insurance company, your lawyer will first help you:
- Document all accident details thoroughly (whether pedestrian or driving accidents)
- Conduct a full investigation of the crash and evaluate the damage
- Obtain a medical diagnosis for any injuries and get the necessary treatment
- Collect key evidence, including witness statements and police reports
Note: In case the law enforcement officers didn’t investigate the accident, you’ll need to report it within 10 days if there was an injury, a fatality, or property damage of $1,000 or more.
The average car accident settlement process goes through the following steps:
If you haven’t already filed a claim with the at-fault driver’s insurance, your personal injury attorney will handle that for you. But if you already have, your attorney will inform the insurance company that they’re now representing you on the claim.
Don’t have a personal injury attorney?
Schedule a free No Bull Law consultation to get started on your claim right away.
A standard car accident settlement should cover all costs related to your accident, including:
- Medical expenses, such as ambulance fees, hospital bills, surgeries, physical therapy, medications, and medical equipment
- Lost wages and future income if you have a catastrophic injury that affects your work
- Replacement services, like childcare or household tasks
- Home or car modifications to accommodate a disability due to a severe or catastrophic injury
- Compensation for pain and suffering, emotional distress, and mental anguish
- Repairs or replacement for property damage and other economic damages to personal belongings
Once the evidence and medical details are reviewed, your personal injury lawyer will draft a demand letter to the at-fault driver’s insurance company. This will be your first formal communication with the other driver’s insurer.
The demand letter should explain:
- The details of the crash, including accident victims
- How the other driver is at fault
- The severity of your injuries
- The treatment you’ve received
- Whether you need further treatment
- Other accident-related damages sustained
Once the demand letter has been sent, the insurance company must acknowledge receipt of the claim within 15 days and investigate the car accident case.
It’s important to keep printed copies of receipts, photos, financial records, personal statements, and your demand letter. If your personal injury case moves to court, having these documents on hand, especially when they support your demand letter, can significantly strengthen your claim.
3. They Send a Reservation of Rights Letter
The insurance company will then respond with a Reservation of Rights letter. This letter means they’re reviewing your claim but reserve the right to deny the claim if they find it lacks merit. This is just a standard insurance procedure.
They may also ask for auto accident-related documents, statements, and other information to support their investigation.
4. You Negotiate a Settlement
Once all necessary documents, statements, and forms are submitted, the insurance company has 15 business days to accept or deny your car accident claim. After reviewing, they can either:
- Approve your claim: This means the insurer acknowledges your damages are covered. But that doesn’t always mean they’ll offer you fair compensation.
- Decline your claim: This means the insurer claims your accident isn’t covered under their policy or that there were issues in the claim. You should ideally receive a detailed explanation for the denial.
However, insurance companies may stall the settlement process if you don’t have a lawyer. Having a Texas car accident lawyer on your side motivates the insurance company to prevent delays and offer a fair settlement to avoid the risk of litigation.
A skilled attorney can build a strong case, proving liability, causation, and the damages you suffered. In fact, according to The Insurance Research Council, 85% of all insurance payouts for bodily injury claims went to individuals with a car accident attorney.
5. They Prepare a Release Agreement
Before the at-fault driver's insurance company issues a settlement check, you’ll need to sign a few key documents, including a Release of Liability form.
Typically, the insurance company prepares the release. You and your attorney should review it to ensure the terms are fair and accurate before you sign. It officially clears the at-fault driver of any further liability once the settlement is paid.
By signing, you agree to give up the right to pursue any future claims related to this incident, even if your condition worsens or new issues arise. This way, both parties are legally protected moving forward.
6. They Issue the Settlement Check
Under the Texas Insurance Code, the insurer is required to issue the check within 5 business days of the release being signed.
If you have a lawyer, they’ll place the settlement check in a trust account until clearance. After it clears, your lawyer will deduct necessary expenses, such as subrogation claims from health insurance companies, hospital and medical liens, court costs, and legal fees.
Before the final payout, your attorney will provide a detailed breakdown of all deductions, ensuring transparency. Once all obligations are met, you’ll receive the remaining balance as the final settlement, completing the process.
From start to finish, it's obvious there's a lot of back and forth before you can reach a settlement. You may want to know the average settlement timeline in Texas.
The average car accident settlement can take from a few weeks to several months to settle. Some factors that can impact the timeline include:
- The seriousness of your injuries
- Liability disputes
- Delays caused by the insurance company
- Ongoing or incomplete medical treatment
- Legal and bureaucratic complications
- Lack of sufficient evidence to back up the car accident claim
- Involvement of multiple accident victims or responsible parties
- Negotiation breakdowns between parties
- Law or policy changes that impact the claim
- Disputes over the valuation, particularly for non-economic damages
IMPORTANT: Texas law grants you a two-year statute of limitations from the date of the car accident when filing a claim. So, you need to file a personal injury claim within this period to be eligible for a settlement.
For an estimated timeline for your specific car accident case, book a free consultation with No Bull Law. Our attorneys have a ton of experience in Texas personal injury law and will help get you some answers.
Having legal support can simplify your every step toward a fair car accident injury settlement.
- You save time and effort: A reputable lawyer will take over the tedious process of settling a claim, like tracking down witnesses, getting police and medical reports, and writing a demand letter. Plus, they’ll save you from the endless back-and-forth with insurance reps, doctors, and the police. Besides, they’ll be familiar with all personal injury law procedures and strict deadlines so that you don’t have to turn into a legal expert overnight.
- They can negotiate a higher settlement amount: Your lawyer has a ton of experience negotiating with insurance companies. They can advise whether the settlement offer is fair, negotiate for better settlement amounts, or take it to trial if the settlement offer doesn’t stack up. In fact, studies show that lawyers, on average, get 3-3.5x the settlement amount compared to people representing themselves.
- You can make an accurate claim: If you set your car accident injury settlement too high, you might risk losing the case, but if you aim too low, you might shortchange yourself on the final value. Having handled countless similar cases like yours, a seasoned car accident lawyer knows the sweet spot and can accurately assess what your claim should be worth.
- You get clarity in your compensation options: Not sure if the other driver can cover your damages? A lawyer can offer several alternative solutions, such as receiving payment through the at-fault party’s weekly wages or tapping into any assets they might own.
- They can represent you in a lawsuit if required: If a fair settlement isn’t reached, you can file a car accident lawsuit in court. A skilled attorney in personal injury trial law can handle everything — from filing the car accident lawsuit to representing you during the trial, presenting evidence, and advocating on your behalf.
Having a lawyer involved from the start who fully understands your case leads to the best possible case results and helps you avoid mistakes that could weaken your claim.
And the best part is, you don’t pay a cent unless you win the case.
That’s why you should consider legal aid from No Bull Law. Our top-notch expertise and drive to get justice for our clients means you don’t have to worry about the settlement process. We’ll get you the best possible representation and protection.
Here’s how we work:
- Book a free case evaluation consultation
- We’ll investigate your claim
- If we take your case, we’ll get you the settlement you deserve
- You don’t pay unless we win
Claim Your Texas Car Accident Settlement with No Bull Law
The car accident settlement process in Texas can be long and tedious — endless paperwork, negotiations with insurers, and strict deadlines. Handling it all on your own can be overwhelming, and even a small misstep could hurt your claim.
A skilled lawyer can help you cut through the maze, advocate for your best interests, and fight for the highest possible settlement.
So why wait?
Contact No Bull Law for a free consultation today — skip the hassle, lawyer up, and let us turn your claim into a win.
