How Long Does It Take to Get Your Settlement Check After You Settle Your Motorcycle Accident Case?
Motorcycle accident cases can usually be settled for the entire insurance policy much more quickly than most car accident cases. But what happens when you agree to settle your case?
As an example, your motorcycle was struck by a car with a $100,000 insurance policy. You receive a call from your lawyer advising that the insurance company has offered to settle your case for the full $100,000 insurance policy. If you decide to accept the settlement offer, the insurance company will require you to sign a release.
The release permanently releases the owner and driver of the car, which means you can never (unless fraud was committed) seek any more money for your injuries from the owner and driver of the car.
After you sign the release, your lawyer will send the release to the insurance company. Pursuant to New York State law C.P.L.R. § 5003-a, the insurance company must send the settlement check within 21 days of the date the release was mailed to the insurance company. The insurance company will mail the settlement check to your lawyer.
Your lawyer will deposit the settlement check into an escrow account called an I.O.L.A. account (Interest On Lawyer Accounts). Because settlement checks are out-of-state checks for large amounts, it can take up to 10 days for the bank to clear your settlement check. After your check clears, your lawyer will likely deduct case expenses, then deduct legal fees, and issue a check to you for your net settlement.
My bank usually clears checks in one day and I issue the settlement check to my client the next day. I do not charge motorcycle accident clients for expenses when settled in claim as almost all motorcycle accidents are. I do not charge additional legal fees (such as for negotiating medical liens) and charge only one third of the settlement amount, which can save you thousands of dollars.
If you have been hurt in a New York motorcycle accident, please call Phil Franckel, Esq. immediately, and before speaking with any insurance company, for a free consultation, at 1-800-HURT-911.