Your Accident Settlement Check: How Long It Takes and What Affects the Payout
After an accident, waiting for your settlement check can be stressful. You’ve already been through the trauma, dealt with mounting medical bills, and completed the insurance claim process. Maybe you’ve even explored MedPay options in California. So what’s taking so long?
Understanding the timeline and what factors impact your settlement payout can help reduce anxiety and ensure you’re prepared for what comes next.
What Affects How Long It Takes to Receive a Settlement Check?
Several factors can influence the timeline of a personal injury settlement, even after a claim has been approved. These include:
1. Willingness to Settle
The negotiation process can drag on if there’s disagreement between you and the insurance company. Until both parties agree on a fair amount, the check won’t be issued.
2. Ongoing Medical Treatment
If you’re still receiving treatment, it’s usually wise to wait before settling. Once a settlement is finalized, you can’t request additional compensation—even if new medical expenses arise. Finalizing too early could leave you responsible for future care.
Tip: MedPay (Medical Payments Coverage) may help cover your bills in the meantime—even if you were at fault.
3. Severity of Injuries
Claims involving serious or permanent injuries often take longer to resolve due to higher damages, detailed medical evaluations, and additional negotiations.
4. Comparative Negligence
If there’s a question about who was at fault—or if both parties share responsibility—the claim may take longer to settle. However, MedPay can still assist with your medical expenses, even if you were partially or fully at fault.
How Long Does It Take to Receive a Settlement Check After You Settle?
Once you’ve reached an agreement with the insurer, you’re close—but you’re not quite there yet. Here’s what happens next:
1. Signing the Settlement Agreement
Both parties must sign a written settlement agreement. This document officially ends the dispute and releases the insurance company from future liability related to the accident.
Important: Review the agreement carefully before signing. Once signed, you can no longer pursue additional compensation for the same incident.
2. Issuance of the Check
The insurance company typically has five business days to issue the check after the agreement is signed. Note that weekends and holidays do not count as business days, which can delay the start of this timeline.
3. Check Sent to Your Attorney
The insurer will send the settlement check to your attorney, not directly to you. Your attorney deposits the check into a trust or escrow account, where it must clear before funds can be distributed. The clearing process depends on the bank and check amount.
What Happens Before You Receive Your Share?
Before your attorney releases your portion of the funds, a few deductions are made:
Medical Liens and Bills
If you used MedPay or incurred medical bills during treatment, your attorney is legally required to pay these first. This may include reimbursing MedPay if applicable.
Attorney’s Fees and Costs
Your attorney will deduct their agreed-upon contingency fee and any case-related expenses (like court filing fees or expert witness costs).
Always request a full breakdown of deductions from your attorney. The total should match the final settlement amount minus fees and liens.
Receiving Your Settlement Check
Once all obligations are settled, your attorney will schedule a final meeting. You’ll review the deductions, sign a release form, and receive your payment—either by check or direct deposit.
Why Your Check Might Be Delayed
In most cases, you can expect to receive your settlement check within 4 to 6 weeks after signing the settlement agreement. However, certain circumstances can delay the process:
High Settlement Amounts
Six-figure settlements may take longer, as insurers often require additional verification and approval before issuing large checks.
Annuity or Structured Settlements
Some accident victims opt for periodic payments instead of a lump sum. While this may provide better financial management, it can extend the timeline while payment schedules are arranged.
Outstanding Medical Liens
If your attorney is negotiating lower medical lien payments, this process can delay your check. However, reducing these obligations may increase your final payout.
A Final Note on MedPay Reimbursement
If you used MedPay to cover medical expenses, you generally only need to reimburse it after your settlement is finalized. If your claim is denied, you’re not required to repay those covered costs, making MedPay a helpful financial cushion during the claims process.
Conclusion: Be Patient—It’s Worth the Wait
While the full claim process can take several months, the average wait time for your settlement check after signing the agreement is four to six weeks. Understanding the steps—and what affects your payout—can help ease frustration during the final stages.
A personal injury attorney can help expedite the process, ensure all bills are paid appropriately, and maximize your settlement amount. Whether you’re dealing with a straightforward case or a complex claim involving MedPay, patience and preparation will ultimately lead to the compensation you deserve.
