Why Is My Car Accident Settlement Taking So Long?

If you have been involved in a car accident in South Carolina and are waiting on a settlement, it is common to wonder why your car accident settlement is taking so long. Whether you have suffered injuries, vehicle damage, or both, delays in compensation can create financial stress, frustration, and confusion, especially when medical bills and lost wages start piling up.

While every case differs, certain factors frequently contribute to delays in car accident settlements. Some happen early in the process, during negotiations. Others arise after an agreement has been reached. Below, we will explain the most common reasons your claim might be dragging and what you can expect in a South Carolina car accident settlement timeline.

​How Long Does a Car Accident Settlement Take?

There is no one-size-fits-all answer to how long a car accident settlement takes. Some cases resolve in weeks, while others can take several months – or even years – depending on their complexity. Many variables affect the timeline, including the accident’s severity, whether there’s a dispute over fault, and how cooperative the insurance companies are.

Common Reasons for Delays During Initial Settlement Negotiations

Sometimes, the initial phase of a car accident claim is where delays begin. These issues often stem from uncertainty around the accident details or challenges in establishing liability.

There Are Disputes Over Liability

One of the most common causes of delay is when the parties involved cannot agree on who was at fault. If the insurance companies disagree or if fault is shared, this can seriously slow negotiations. In South Carolina, determining fault is key to a successful settlement. If you are found partially at fault, it could impact your compensation.

Complications increase if the at-fault driver was unlicensed or uninsured. If an unlicensed driver crashes your car, it can open up many issues, from liability questions to insurance coverage disputes. These cases require additional investigation and often extended negotiations.

There’s an Ongoing Investigation

Some accidents require an in-depth investigation before settlement talks can move forward. This is especially true in serious crashes involving commercial trucks, fatalities, or drunk drivers.

In cases involving a DUI, criminal charges may delay the civil claim process. Prosecutors, police departments, and sometimes federal agencies like the NTSB need time to conduct their investigations. This is common in high-speed highway collisions or when the other driver is under the influence.

Your Injuries Have Not Fully Healed, or You’re Still Undergoing Treatment

Another reason for a delay is if you are still receiving treatment for injuries. Insurance companies typically prefer to settle once your condition has stabilized, meaning you have reached “maximum medical improvement” (MMI) after car accident injuries.

Why does this matter? Because once your case is closed, you generally can not go back and ask for more money. That is why waiting until all medical care commences ensures that your compensation fully accounts for every doctor’s visit, therapy session, surgery, and pain and suffering.

Reasons for Delays After a Car Accident Settlement Has Been Reached

Even after reaching a settlement agreement, you might still find yourself waiting. Here are the most common reasons for post-settlement delays.

You Have Outstanding Bills or Medical Liens

If you received treatment and have not paid all your medical bills, your healthcare providers or health insurance company may have placed a lien on your settlement. These liens must be paid before you receive your portion of the money.

Depending on your coverage, medical providers, health insurers, and even Medicaid or Medicare may all be entitled to repayment out of your settlement. Understanding how health insurance interacts with car accident injury claims is important. Only after those liens are resolved will the rest of the settlement be released to you.

The Insurance Company Is Not Acting in Good Faith

Unfortunately, not all insurance companies act nicely. If your insurer is slow-walking your claim or using stall tactics, you could face a bad-faith situation. Here are some signs of bad faith:

• Unreasonable delays in communication or payment
• Failure to investigate your claim thoroughly
• Offering an extremely low settlement without justification
• Misrepresenting policy coverage or benefits
• Requiring excessive or irrelevant documentation
• Denying the claim without a valid reason

How Long Does an Insurance Company Have to Pay a Settlement in SC?

In South Carolina, once a car accident settlement has been agreed upon and all required documents have been signed and submitted, the insurance company typically has 30 days to disburse the settlement funds. This timeline is rooted in state law and industry standards, which aim to prevent undue delays that could financially burden accident victims. However, several factors can affect how quickly you receive your check; sometimes, it may take longer than 30 days.

What Starts the Clock?

The 30-day window usually begins once all of the following are in place:

• A signed settlement agreement by all parties
• Any necessary releases of liability
• Submission of supporting documents (such as final medical bills or lienholder information)
• Confirmation that all conditions of the settlement have been satisfied

Until these steps are completed, the insurer is not technically required to issue the payment, so delays can often happen even after the settlement is “finalized” in principle.

What Happens if a Claim Is Taking Too Long?

Even after all documents are submitted, there are a few scenarios that can cause a delay:

• Outstanding medical liens: If a hospital, doctor, or health insurer has a claim on a portion of your settlement (known as a medical lien), those must be resolved and paid out before you receive your share. This process can take time, especially if there are multiple providers involved.
• Multiple parties involved: In cases where more than one person is entitled to a portion of the settlement, such as co-plaintiffs, lienholders, or subrogated insurers, the insurance company or your lawyer must carefully allocate funds.
• Insurance company processing delays: Some insurers move more slowly than others. While they are legally required to act promptly, administrative bottlenecks or internal reviews can slow things down.
• Bad faith conduct: Occasionally, an insurer might drag its feet intentionally. If they are delaying payment without a valid reason, this could constitute bad faith, which opens them up to legal action.

You have options if your car accident settlement is dragging on without an apparent reason. You can:

• Contact your insurance adjuster for a formal update.
• Ask for a written explanation of the delay.
• File a complaint with the South Carolina Department of Insurance.
• Consult with a personal injury lawyer to escalate your claim.

If the insurance company fails to issue your settlement payment within a reasonable time, and there is no valid explanation, they may violate South Carolina’s insurance regulations. This could result in penalties; in some cases, you may be entitled to additional damages for the delay.

If you are experiencing an unexplained or excessive delay, you must speak with an experienced South Carolina car accident attorney from HawkLaw P.A. As your legal representatives, we can take steps to hold the insurer accountable. We can help you determine whether your rights have been violated and what actions to take next.

While the standard expectation is that you will receive your settlement within 30 days, real-world complications, such as outstanding medical bills, administrative errors, or uncooperative insurers, can stretch that timeline. Staying informed, organized, and legally supported is the best way to avoid unnecessary delays and ensure your settlement is paid promptly.

​Do I Need a Lawyer for a Car Accident Settlement?

You do not technically need a lawyer to settle a car accident claim, but having one can make a huge difference, especially if you have been injured, the fault is disputed, or the insurance company is being difficult. Even if your injuries seem minor, having a South Carolina car accident attorney review your case can protect your future. Insurance companies have teams of lawyers working for them; you should have someone in your corner, too.

Whether you are just starting the process or waiting for your check, remember: You do not have to go through this alone. At HawkLaw, P.A., we help accident victims throughout South Carolina and serve Anderson, Charleston, Columbia, Greenville, Spartanburg, and the surrounding areas. Our attorneys know how to deal with uncooperative insurance adjusters, fight for fair compensation, and correctly resolve your medical bills and liens. Contact us today for a free consultation*.