A Typical Timeline of an Auto Accident Settlement in Phoenix

During the first nine months of 2021, Arizona traffic deaths increased by 18.4%, exceeding the national average of 12% during the same period. This may be due to the state’s population surge. From 2019 to 2022, Arizona shows an increase of 400,000 licensed drivers.

Phoenix is one of the largest areas for population growth. That makes it a dangerous place to get behind the wheel. According to the Arizona Motor Vehicle Crash Facts for 2021, the city had about 40,833 auto crashes in 2021, resulting in about 294 deaths and 16,062 injuries.

Negotiating an auto accident settlement while recovering from a personal injury can be frustrating and time-consuming. It is essential to avoid getting wrapped up in the legalities and letting medical needs slide. Even a low-speed, low-impact accident can cause severe personal injury that impacts your long-term health and lifestyle. 

If you’re wondering about filing a lawsuit but have concerns about the settlement timeline, we’re here to help. We will explain the timeline insurance companies must follow in a Phoenix settlement, filing deadlines, and typical lawsuit timeline.

First 24 Hours

The first step is to call your insurance company and report the accident. Because Arizona is an at-fault state, the law requires the responsible party’s insurance to pay for the car accident.

Your second call is to the insurance company of the at-fault driver. It is essential to take this step within 24 hours of the accident. This prevents you from exceeding any claim reporting deadlines the company may have.

Arizona does not require you to report a minor traffic accident to authorities. It does mandate reporting any accident that results in personal injury or death. Contact the Arizona Highway Patrol Division or the Maricopa County Sheriff’s Office in Phoenix.

In addition to coverage for damage to your vehicle, you’ll want to seek compensation for any personal injuries you receive. The determination of fair compensation includes:

• Car repair costs
• Insurance policy coverage limits
• Lost wages for missing work during recovery
• Medical bills: current and future
• Pain and suffering

One of the most important factors is if injuries are permanent and life-altering. For instance, a traumatic brain injury that impacts mental abilities or injuries resulting in permanent damage or loss of a limb. This type of injury will result in a higher settlement amount because of its severity.

First 40 Days

Before paying a claim, the insurance company will investigate the accident. Their position is to find any loophole allowing them to dispute the claim.

Arizona law prevents insurance companies from dragging this out too far.
The law establishes requirements insurance companies must meet within the first 40 days, including:

• Acknowledge the claim: written response within ten working days of the call, plus send claims paperwork
• Claim determination: within 15 working days following receipt of completed paperwork and proof of loss forms
• Send payment on the claim: 15 days after claim approval

There are exceptions to the above. Sometimes additional time is necessary for completing an accident investigation or if the injuries are severe.

Negotiate Accident Settlement

Following acceptance of an accident claim, the parties attempt to negotiate a settlement. This is when it is vital to have a knowledgeable accident attorney.

Insurance companies want to pay out as little as possible on claims. Any settlement offer they make will likely be below what you are legally entitled to. If you accept their offer, you have no legal recourse to request a higher amount later.

Your attorney understands the physical, emotional, and financial distress auto accidents cause. They know the law and your legal rights. They will fight to get you a fair and equitable settlement for your loss of income, property damage, medical bills, future accident-related medical costs, and more.

Wrongful Denial

Insurance companies try to find ways to deny your claim, saving them thousands of dollars. That doesn’t mean their denial is legitimate, and often it is not. Your accident lawyer will recognize wrongful denials and head them off during negotiations. If the company persists, your attorney will file a wrongful denial of claim lawsuit. 

The reasons an insurance company may deny your claim include:

• Injury is excluded from policy coverage: exclusions related to auto accident injury may be illegal
• The insurance company is incorrectly interpreting accident or injury information
• Coverage has lapsed: this may free the at-fault driver from a claim; your uninsured motorist coverage may cover the loss
• Incomplete claim form
• Failure to file a claim immediately after an accident
• Not seeking medical treatment after the accident
• Medical records not received
• Pre-existing condition unrelated to the accident
• Not taking precautions to avoid injury
• Not completing medical treatment recommendations

If the insurance company denies your claim without good cause, your accident lawyer may need to file for bad faith against the insurance company and a lawsuit for negligence against the other driver.

Insurance companies have extensive resources and attorneys on retainer. They know the ball in their court when dealing with a person suffering financial loss who lacks legal representation and requires funds while recuperating from an accident. Manipulation, intimidation, and demands to take it or lose it settlement offers are a way of forcing a low settlement amount.

When the insurance company learns they are negotiating with an experienced auto accident attorney, they are more likely to play fair. They know they must appear before a judge and jury to atone for their actions if they don’t reach a comparable settlement.

Deadline for Filing

Every state sets forth a deadline for filing lawsuits. Arizona’s Statute of Limitations requires filing all personal injury lawsuits within two years of the accident. If your lawyer cannot negotiate a settlement, they will file a lawsuit before that date.

There are exceptions to the two-year filing deadline. One is if you were unaware of your injury until sometime after the accident. When this happens, the countdown begins with the date you become aware of the injury.

The timeline is shorter if the other party is a government employee or institution. You only have six months after the accident to file a personal injury claim. You have one year to file a lawsuit.

The lawsuit timeline for negotiations and resolution is usually at least 12 months before trial. There are several hearings and exchanges of discovery that may lead to a settlement before the trial date.

There is also an exception when the person with injuries is minor. That person has a two-year filing deadline from their 18th birthday. For people with mental impairment or incompetence, their two-year countdown begins when the disability no longer exists.

Reasons for a Slow-Moving Claim

Settlement negotiations may feel like the pace of a snail moving through sludge. Arizona law requires an insurance company to substantiate a slow-moving claim. Your attorney will be aware of any reason for a settlement delay.

Issues that may slow down a settlement include:

• Doctors unable to make a long-term prognosis on recovery
• Filing a lawsuit is necessary to obtain compensation comparable to injuries
• Legal issues requiring further review
• Missing information
• The opposing party denies responsibility
• Settlement disputes between parties; they cannot agree on a final detail such as comparative negligence, compensation amount, etc.

Even when the cause of an accident appears straightforward, the insurance company will sometimes dispute a claim. They may insist the injured person is entirely or partially at fault. This may be due to their belief the injuries are due to the claimant’s speeding, intoxication, fatigue, or distracted driving, resulting in the collision.

When this happens, a lawsuit may be necessary to obtain a settlement. The timeline for a lawsuit is more extensive than an out-of-court insurance claim settlement.

Lawsuit Timeline

Every lawsuit varies in time, depending on the case’s complexity, how much compensation is requested, and the scheduling calendars of the attorneys and the judge handling the case.

After filing the lawsuit, the plaintiff has 90 days to complete service on the defendant with the summons and complaint. The plaintiff must file a Certificate of Compulsory Arbitration with their complaint. This determines whether the case is subject to arbitration or trial.

Once the defendant receives service, they have 20 days to file an answer. Once an answer is filed, litigation begins and averages four months to two years.

During that time, the attorneys will exchange discovery. This includes the accident report, medical records, interrogatories, requests for admission, conducting depositions, and more. During this process, the attorneys will continue negotiating to reach a settlement.

Periodic hearings will take place, keeping the court apprised of the case’s progress. This may include the following:

• Motion to Compel: asking the court to order the opposing party to take action, usually answering overdue discovery requests
• Motion in Limine: asking the court to rule on the admissibility of specific evidence
• Motion for Summary Judgment: asking the judge to rule in their favor because of a claim of no evidence to support the opposing party

If the parties do not settle, the case will proceed to trial. The attorneys and judge will decide how long the trial will likely last. This can be anywhere from a few hours to a few weeks.

Once the jury renders its decision, an order will enter detailing the court’s ruling, which includes the amount of compensation awarded. Your attorney will collect and distribute the funds.

Compulsory Arbitration or Trial

The difference in determining whether the case will settle through compulsory arbitration or trial depends on the amount of controversy. If the case has a value of $50,000 or less, then the matter is subject to arbitration.

If the case has a value of over $50,000, it will be scheduled for a jury trial, which usually happens 12 months or more from the date the defendant files their answer.

Compulsory arbitration is mandatory for all cases with an amount in controversy under  $50,000. The court appoints the arbitrator after the defendant files their answer to the complaint. After the court appoints the arbitrator, each side has ten days to request a different arbitrator.

This is done by filing a Notice to Strike Arbitrator. Maricopa County has a list of qualified arbitrators. Arbitrators are attorneys in the county licensed for at least four years by the State Bar of Arizona.

Following their appointment, the arbitrator reviews the case and has 120 days to notify the Arbitration Department of a new hearing date. After the hearing, the arbitrator determines an appropriate resolution and monetary award by filing a Notice of Decision with the court.

The winning party submits the arbitration award and a statement of costs to the arbitrator for signature within ten days of the decision notice. The arbitrator must then eFile the award via the Arizona Supreme Court eFiling website.

Following the filing with the court, the losing party has 20 days to file an appeal with an arbitrator’s fee of $75 per hearing day and a $26 processing fee. Following an appeal, the case goes back to the judge for a trial date to be set.

The judge can hear the case or send it to Alternative Dispute Resolution for a short trial. After a trial is held on an appealed case, the judge’s ruling is binding.

The purpose of compulsory arbitration is to reduce court costs for the parties while allowing the court more effective use of judicial resources.

Alternative Dispute Resolution (ADR) Short Trial

Maricopa County courts use Alternative Dispute Resolution to help parties resolve without going through the time and expense of a full trial. A Civil Short Trial falls under Administrative Order No. 2023-024. It allows parties to stipulate to a one-day, binding jury trial.

This type of trial uses a four-person jury. A verdict is binding by a vote of three out of four jurors. Each party has two hours to present their case to the jurors. A judge pro tempore presides over the hearing.

Judge pro tempore is a volunteer, pro bono position. To qualify for this position, the judge must be:

• Admitted to practice law in Arizona at least five years before their appointment
• Of good moral character
• At least 30 years old

This binding ADR alternative trial is common in automobile non-death injury cases.

Determining Requested Compensation

The compensation your attorney requests depends on your out-of-pocket costs and the extent of your injuries, including whether they are permanent or life-altering. Personal injury settlements average between $3,000 to $75,000. The out-of-pocket costs increase substantially if you require an ambulance or air ambulance transport from the accident. 

The Arizona Air Ambulance Service Rate Schedule shows the base rates for fixed-wing transports from $3,250 to $54,740 plus an additional per-mile charge. Rotor-wing (helicopter) transportation base rates range from $10,070 to $54,740, plus an additional per-mile charge.

Ground emergency ambulance service averages $860 in Phoenix. This is considerably more than you pay for non-emergency medical transportation, which averages $100 to $200 plus mileage.

Other factors that increase your compensation include the length of time in the hospital or trauma center, the number of surgeries, and if a stay in a rehabilitation facility is necessary.

Your Case Timeline

The time it takes to complete your case depends on how soon after the accident you contact a personal injury attorney and the extent of your injuries. If you quickly recover, the matter may finalize in a few months. If you have a lengthy recovery period, waiting for a doctor to determine your long-term prognosis may be necessary to calculate an appropriate compensation amount.

Another factor impacting the settlement timeline is how willing both parties are to reach an agreement. You may desire a quick resolution, but litigation may be longer if the insurance company fights the claim.

Whether your case falls above or below the $50,000 threshold will determine which course of action it takes. Every case is unique and proceeds on its timetable. If you have any concerns about handling existing medical bills, income loss, and other issues relative to your injuries, discuss these with your attorney.

Fast-Track Your Auto Accident Settlement

The best way to obtain a fair and equitable auto accident settlement is to work with Sweet Lawyers. We will ensure your insurance claim is handled properly and that you receive all compensation available under the law.

Begin the process by ordering a police report or calling 1-800-674-7854 to schedule a free consultation.