Massachusetts Car Accident Settlement Process and Timeline

Teenagers are taught what to do if they’re in a car accident, but knowing how to reach and remembering all the steps during the stress of a crash are two different things. With more than 75% of drivers experiencing at least one auto accident during their lifetime behind the wheel, knowing what to expect and what needs to be done in the aftermath of a fender-bender is a necessity for most.

Being aware of what steps to take immediately following a Massachusetts car accident is important, as is knowing how the insurance claims process works. If you suffer severe injuries in a car crash and the insurance carrier refuses to pay, you may need to file a personal injury lawsuit.

Even if you sue the at-fault driver, there’s a good chance your car accident case will settle before making it to a courtroom. This article explains the Massachusetts car accident settlement process, including how the settlement timeline plays out. It also examines the factors that may impact your settlement amount.

If you’ve suffered serious injuries in an auto accident, consider consulting a Massachusetts car accident attorney. For ease of further research, we’ve supplied links to related FindLaw articles at the bottom of this page.

Massachusetts Car Insurance Laws

One of the reasons states require motorists to carry car insurance coverage is to take care of accident victims who suffer serious bodily injuries. If you get into a motor vehicle accident, you must file an insurance claim.

Massachusetts is a no-fault state, so you must file a claim with your auto insurance carrier first after an accident. If your insurance policy doesn’t cover your damages, your personal injury lawyer can sue the at-fault driver.

Under Massachusetts law, drivers must maintain four types of insurance coverage with the following minimum limits:

• Bodily injury to others
  • $20,000 per person
  • $40,000 per accident
• Personal injury protection (PIP)
  • $8,000 per person, per accident
• Bodily injury caused by an uninsured motorist
  • $20,000 per person
  • $40,000 per accident
• Property damage (to another driver’s vehicle)
  • $5,000 per accident

The insurance company will not pay more than your policy limits. If a person fails to maintain the above insurance coverage, they’ll face penalties and a possible suspension of their driver’s license.

Damages Massachusetts Car Accident Victims Can Demand in Their Claim

When you file your car accident claim, you must include your damages. This includes any out-of-pocket expenses and future expenses related to your auto accident. When you first meet with your car accident lawyer, they’ll review your case and determine the value of your personal injury claim.

Most personal injury cases involve the following types of damages:

• Medical bills
• Future medical treatment
• Property damage
• Lost wages
• Lost future income
• Pain and suffering

If the insurance adjuster denies your claim, your attorney will send a final demand letter asking that it pay your claim in full. If the insurance adjuster has already denied your claim, they will likely not respond to the demand letter.

At this point, your car accident lawyer will file a personal injury lawsuit against the other driver, demanding fair compensation for your injuries. Once the other driver’s insurance company realizes you have filed suit, it will hopefully contact your attorney to begin settlement negotiations.

How Car Accident Settlements Work in Massachusetts

In most instances, you don’t file a car accident lawsuit until after you have filed your insurance claim. There are two exceptions to this rule.

You can step outside of the no-fault system and take the case to court in the following two situations:

• You incur at least $2,000 in reasonable medical expenses
• Your injuries include permanent and severe disfigurement or a loss of sight or hearing

When you file a claim with your insurance company, it will either deny your claim or issue you a settlement check. If the insurance company denies your claim, you’ll have to file a personal injury lawsuit against the at-fault driver to seek relief. You cannot sue the insurance company directly unless you believe it acted in bad faith.

After you file your personal injury claim, the at-fault driver will forward a copy of the complaint to their insurance carrier. Their carrier will file an answer to your complaint and contact the law office handling your car accident case.

Once this happens, your lawyer will try to negotiate a settlement with the insurance companies. If a fair settlement agreeable to both sides is reached, there will be no need for a trial. Your attorney will create a settlement agreement for both parties to sign. A copy of the settlement is filed with the court to let the judge know the parties have reached an agreement.

Car Accident Settlement Timeline in Massachusetts

Once your attorney and the auto insurance company sign the settlement agreement, they will notify the court. The settlement agreement will include the following information:

• Settlement amount
• Settlement due date
• Language that limits the plaintiff’s ability to sue for more money in the future
• Signature of all parties

Accident victims usually receive their settlement check within 30-45 days. It depends on the date the parties sign the agreement. For example, if you sign the settlement release on the 16th of the month, the insurance carrier will likely have until the end of the following month to remit payment. If you sign the agreement on the 8th of the month, you will likely receive your check by the 15th of the following month.

If there are no other issues, the insurance company will send the settlement funds to your attorney, who will deduct their fee and any costs associated with your case. The rest of the money will be yours.

Keep in mind that you’re responsible for paying any outstanding medical bills when you receive your car accident settlement. While your personal injury lawyer can try to negotiate reduced payments with the healthcare providers, it is ultimately your responsibility to pay these bills.

Average Car Accident Settlements in Massachusetts

It is impossible to say how much the average Massachusetts car accident settlement is worth. Every case is unique, and the facts of your case will determine your settlement amount. The factors that may impact the amount of your settlement include:

• The severity of your injuries
• Amount of your current and future medical bills
• Age
• Income and earning potential
• Whether any of your serious injuries are permanent
• Level of pain and suffering
• Amount of out-of-pocket expenses
• At-fault driver’s insurance policy limits

It’s important to note that the insurance company will not pay more than the policy limits. When you submit your initial claim to your insurance company, it may be for an amount over your coverage limits. If so, you can pursue a claim against the other driver’s insurance carrier to recover the difference.

There is no guarantee that either insurance company will pay your claim. They may argue that you caused the car crash or that your car accident injuries aren’t as serious as you say they are.

You may have to pursue a personal injury claim. If your claim exceeds the policy limits, you’ll have two choices. You can either settle for the policy limits or sue the at-fault driver for the remainder. Since collecting large judgments against individual defendants is so difficult, it may be best to accept a settlement from the insurance carriers.

Time Limits for Filing a Car Accident Lawsuit in Massachusetts

Every state has laws called statutes of limitations that dictate how long a plaintiff must file a legal claim. In Massachusetts, the statute of limitations for personal injury cases is three years.

The three years start on the date of the accident. If the injured party misses the filing deadline, they will lose their chance of pursuing damages. The court will dismiss any legal actions a plaintiff files after the statute of limitations period expires.

Disclaimer: State laws change frequently due to new legislation, higher court rulings, etc. While FindLaw strives to provide readers with the most current information, contact a local car accident attorney to confirm your state laws.

Have Questions About the Car Accident Settlement Process in Massachusetts? Speak With a Lawyer

Although Massachusetts applies the no-fault rule for insurance claims, you shouldn’t feel obligated to accept the insurance company’s initial settlement offer. If another driver caused your injuries and your insurance company refuses to provide adequate compensation, consider speaking with an experienced car accident attorney in your area.

When you contact a local car accident lawyer, they’ll help you schedule a free case evaluation. Once the attorney reviews your case, they’ll have a better idea of what it’s worth and your chances for recovery.

Related FindLaw Resources

• Obtaining and Using a Police Report
• Getting Medical Records for Your Case
• After a Car Accident
• Car Accident Checklist