A statute of limitations is defined as the maximum amount of time parties involved in a legal dispute have to iniate legal action. When discussing car accident settlements and lawsuits, the statute of limitations means that any legal action (filing a claim for damages or filing a lawsuit in court) arising from an accident or related injury must be filed within a certain period, or you will no longer be able to file a lawsuit and receive compensation.
People who have been in a car accident with injuries should be aware of the statute of limitations for their state. Most states allow for 2-3 years to take legal action after being injured in a car crash, but some only allow for 1 year and others will allow up to 4.
In most cases, while it is a good idea to seek immediate medical treatment and speak to an attorney and your insurance agent within a few days of the accident, you should also wait until you’ve recovered fully from all your injuries before you settle your car accident claim. This is because once you’ve settled and accepted a payout, you have no more recourse to collect, so if any additional injuries pop up or more medical costs are incurred, you’re on your own. This is reaching MMI, or Maximum Medical Improvement.