Many people ask, “What is a statute of limitation?”  A statute of limitation is the time period in which you can file a lawsuit against a person or a company who is at fault for your injuries.  Many states’ statute of limitation is three years.  However, it’s not the same in any state.

A statute of limitation means that, if you're in an accident on XYZ date, you have three years from that date to file a lawsuit, if you're going to file a lawsuit.  If you don't file a lawsuit within the statute of limitations, then your claim with the insurance company is forever barred.  Meaning that you cannot try and collect money with the insurance company.

So you have to do one of two things.  You have to settle with insurance company within the three years, or you have to file suit against the insurance company or the person that's at fault within three years.  

The statute of limitations may be longer than three years.  It may be less than three years.  Again, it depends on the respective state.