Should you file a personal injury claim or a lawsuit after suffering damages in an accident? Is there a difference? Aren’t you performing the same legal action regardless of what you decide to call it? This usually results in both a yes and no answer.

Understanding the distinctions between these two legal avenues is crucial for maximizing your recovery. Choosing the right approach can significantly impact the outcome of your case.

Both claims and lawsuits are legal options that can recover compensation for your damages but the processes are different. We’ll look at the differences between a personal injury claim vs a lawsuit so you’re better prepared to make the right choice for your case.

Making an informed decision early on can save you time, money, and stress. The right strategy can lead to a more favorable resolution for your situation and ensure that your rights are fully protected throughout the process.

Consulting with a legal expert can provide additional clarity and help you navigate the complexities of both options effectively.

What is a Personal Injury Claim?

So, what is a claim of personal injury? This is usually your first legal action after being injured in an accident. Your claim typically lists losses like medical expenses, property damage, and lost income. Some injury claims even include non-economic damages like your pain, suffering, and mental anguish.

The claim is filed with the insurance company, either yours or the party responsible for causing the accident. Which insurance company you file your claim with depends on your state’s laws.

Some states follow at-fault guidelines while others use no-fault insurance rules. Since your claim is with the insurance company, it’s not filed in civil court. In other words, a judge and/or jury isn’t involved in settling an injury claim.

Chances are, you will go through a period of negotiations with the insurance company. The insurance provider has the right to negotiate a lower settlement or even deny your claim. If your claim is denied, you can file an appeal. However, there’s still no guarantee the insurance company will approve the claim.

Some common types of personal injury claims include:

• Vehicle accidents which automobile insurance companies typically handle
• Accidents on property. In this instance, you file a claim with the property owner’s insurance
• If it’s a slip-and-fall accident, business insurance usually reviews and potentially approves your claim

Medical malpractice claims also fall under personal injury law. If a healthcare worker’s negligence causes your injuries, you may be able to file a claim with the party’s medical malpractice insurer. While the type of personal injury claim can vary, all follow the same process. You file a claim with the appropriate insurance provider.

What is a Personal Injury Lawsuit?

Sometimes, it’s impossible to reach an agreement with the insurance company. The adjuster is determined to reduce the value of your claim, leaving you with unpaid damages.

When this happens, you have the option of filing a personal injury lawsuit in civil court. All lawsuits are considered civil matters regardless of whether your claim is for a car collision, slip-and-fall accident, or medical malpractice.

Your lawsuit seeks to resolve the differences between you and the defendant, typically the insurance company. You are also going to need to prove negligence, which means showing the defendant’s actions or behavior either willfully or unknowingly caused the accident resulting in your injuries.

If you can prove negligence, your lawsuit can usually move forward. After both sides present their evidence, a judge or jury decides if you receive compensation and the amount.

While the compensation amount you receive may be higher in a lawsuit, compared to a claim, be prepared for the process to take several months. Some personal injury lawsuits can drag on for a couple of years. Your lawsuit will go through multiple phases that include discovery, pre-trial motions, hearings, the trial, and possibly even an appeal.

If either side doesn’t agree with the verdict, they may be able to file an appeal. Lawsuits tend to be more expensive and time-consuming compared to an injury claim.

When Should You File a Personal Injury Claim

So, how do you know when to file a claim for personal injury? Even though it’s usually filed before moving on to a lawsuit, sometimes, it can be in your best interest to skip filing a claim.

If your goal is to reduce fees associated with your claim like court and attorney costs, a claim is usually your best option. This scenario also applies if you want to recover compensation quickly, instead of waiting months as your case winds through the legal system.

When It’s Best to Skip the Claim Process

Depending on the complexity of your personal injury case, sometimes it’s best to move straight to filing a lawsuit. If you want to force the insurance company to the negotiating table, a lawsuit will get their attention. Part of the pre-trial process also involves mediation, which is when a judge orders both parties to sit down and try to hammer out an agreement.

A lawsuit can also help you gather more evidence to help support your claim, which may be necessary in more complicated cases, like ones involving multiple defendants. If you believe you may receive more compensation going to trial, you may be right.

However, this isn’t a great reason to head to trial. Remember, trials can be expensive and you may be on the hook for covering these costs, which can significantly reduce the amount of compensation you receive for your damages.

When Is a Lawsuit Your Best Option

If negotiations between you and the insurance company have completely broken down, a lawsuit may be your next option.

Lawsuits are also often better suited for personal injury claims with high compensation values, and this often applies when injuries are life-altering. Some examples can include permanent disfigurement or if you require a lifetime of medical care.

When gross negligence is a factor, you may want to move straight to filing a lawsuit. Cases involving gross negligence, when the accident was intentionally caused, may be eligible for punitive damages. You can’t claim punitive damages, they are only awarded by a judge or jury.

Don’t Make a Final Decision Without Consulting an Attorney

Deciding between filing a claim and pursuing a lawsuit can be challenging, as each option has its benefits and potential drawbacks. It’s important to weigh these carefully before contacting the insurance company or taking your case to court.

Talking to an attorney about your personal injury case can provide valuable guidance. They can help you navigate the complexities of both processes and advise you on the best course of action based on the unique facts and circumstances of your situation.

Making the Right Choice: Personal Injury Claim vs. Lawsuit

Choosing between filing an injury claim or a lawsuit depends on the specifics of your case and your desired outcome.

While claims can offer a quicker and less costly resolution, lawsuits may be necessary to secure fair compensation, especially in complex or high-value cases.

Consulting with an experienced attorney is crucial to making an informed decision and maximizing your recovery.