Car accidents can be devastating in the severity of injuries and how abruptly they occur. One minute, you have everything going for you; the next, your life changes forever.
While nothing can bring back what you lose in an accident, knowing that you can recover damages to ensure the quality of your life assumes some semblance of normalcy may be recurring. Filing a compensation claim isn’t easy and often requires legal representation. Consider speaking to Ronny Hulsey of Smith Hulsey Law for a chance at securing rightful compensation.
When seeking compensation for damages, it is important to understand that your right to compensation does not run indefinitely. It is subject to filing a claim within the stipulated time limit. This guide delves into time limitations for filing a claim and will be an excellent read if you intend to file a claim.
Claim vs. Lawsuit
A claim and lawsuit are used interchangeably, but the two differ significantly. A claim is more like a demand to your insurer or the other party’s insurer. If the insurer pays up, the case is closed; you receive compensation and sign release papers.
On the other hand, a lawsuit becomes an option if the insurer or the at-fault party is unwilling to pay up and may involve going to court, but compensation claims rarely goes that far.
Filing a Claim with Your Insurer
There are no statutory timelines for filing a claim with your insurer. So, individual companies set rules, which they may mention in the policy documents. But in most cases, they demand that you file or report promptly and stick to the statute of limitations.
If you are late in filing a claim or reporting, the insurer can claim difficulty investigating the accidents and thus seek to deny it. But they must prove that the delay prejudiced your claim or could harm them. The best rule of thumb is understanding state law and the insurer’s requirements around their specific deadlines.
Filing a Claim with the Faulty Party’s Insurer
Deadlines for filing a claim with the other party’s insurer are not as strict as when seeking compensation through your insurer. Also, the deadlines are determined by state laws referred to as the statute of limitation. The statute of limitation is the window within which an accident victim can bring a claim against the at-fault party.
The statute of limitation varies by state. Kentucky, Louisiana, and Tennessee have the shortest statute of limitations at one year. In contrast, Maine, New Jersey, and North Dakota have the longest at six years, but most states have two to three-year statute of limitations.
After the statute of limitations expires, you lose your right to compensation. But there are some exemptions, for example, for children whose statute of limitation runs until some years after they hit 18. Also, the statute of limitations stops running if the location of the at-fault party is unknown or if they move outside the state.
Wait Until After You Achieve Maximum Medical Improvement
Unless you are time-bound by the statute of limitation, your lawyer can suggest you wait before filing a claim.
It is easier to value a claim once you have achieved maximum medical improvement. If not, your lawyer can work with your doctor’s prognosis to calculate future damages.
However, case preparation should start as early as the time of the accident, so if you can document your scene in pictures and videos. Also, gather witness accounts and contact information. If this is not possible for whatever reason, your lawyer can help you with gathering evidence later.
Conclusion
Filing an accident claim within the legal time limit is crucial, as your right to compensation expires after the statute of limitations. While waiting for maximum medical improvement can help assess damages, timely action is essential. Consult a lawyer to ensure your claim is filed correctly and within the required timeframe.
Source: Smith Hulsey Law Firm
