When you’re injured due to someone else’s negligence, pursuing compensation can feel overwhelming, especially if you’re unsure whether to file an insurance claim or a lawsuit. While both are legal avenues for seeking recovery, they serve different purposes and follow distinct processes.
Understanding the difference between a claim and a lawsuit is the first step toward protecting your rights and securing the compensation you need.
Understanding Insurance Claims
After an injury, the first step toward receiving compensation is typically filing an insurance claim, rather than a lawsuit. A claim is a formal request asking the insurance company to pay for damages covered under the policy.
This process typically takes place outside of court and involves several key steps:
- You must notify the insurance company as soon as possible to preserve your right to make a claim.
- The insurer will provide forms or request documentation that you need to complete accurately and thoroughly.
- Supporting evidence such as medical records, repair estimates, and witness statements will help substantiate your claim.
- Throughout the process, you may need to communicate with a claims adjuster, who evaluates the claim and may offer a settlement.
According to the Insurance Information Institute, auto insurers alone handle millions of claims each year. Most are resolved without ever going to court.
Filing a claim is generally faster and less expensive than pursuing litigation. However, it is important to proceed with caution. Insurance companies are businesses, and their initial settlement offers are often lower than what victims may rightfully deserve.
When Claims Become Lawsuits
While most injury cases begin and end with an insurance claim, some claims do not lead to a fair or timely resolution. In such cases, the next step may be to file a lawsuit. A lawsuit is a formal legal action filed in court and governed by strict procedural rules. Unlike claims, lawsuits involve the court system, legal pleadings, and potentially a trial.
You may need to file a lawsuit when certain complications arise in your case:
- The insurance company denies your claim outright, leaving you with no other avenue for recovery.
- The settlement offer is too low to cover your medical bills, lost income, and other damages.
- The statute of limitations is approaching, and you must act to preserve your legal rights.
- Liability is disputed, and the insurance company refuses to accept responsibility for the incident.
These situations often require taking your case to court for full and fair compensation. According to the U.S. Department of Justice, only 4 to 5 percent of personal injury cases proceed to trial. However, filing a lawsuit can often prompt more serious negotiations and lead to a better settlement.
Key Differences Between Claims and Lawsuits
Understanding the differences between claims and lawsuits helps you make better choices for your case.
Here are the key distinctions:
- Formality: Claims involve paperwork and talks with insurance companies. Lawsuits need court filings and formal legal steps.
- Timeline: Claims usually resolve faster than lawsuits. Lawsuits can take months or even years to resolve.
- Cost: Claims often cost less than lawsuits. Lawsuits include court fees, expert witnesses, and other costs.
- Control: Insurance companies have total control over claims. If a lawsuit goes to trial, a judge or jury decides the outcome.
- Potential compensation: Lawsuit settlements and verdicts often surpass initial insurance offers when cases are strong.
These differences can greatly affect your experience and the results of your case.
The Claim Process
The typical insurance claim process follows these steps:
- Report the incident to the relevant insurance company
- Complete and submit claim forms
- The insurer investigates your claim
- You provide documentation of injuries and damages
- Negotiations with the claims adjuster
- Settlement offer or denial
Insurance companies have teams of adjusters and attorneys working to minimize payouts. They may use various tactics to reduce the value of your claim or deny it altogether.
The Lawsuit Process
Your attorney may recommend filing a lawsuit if your claim doesn’t result in a fair settlement.
This process typically includes:
- Filing a complaint outlining your case
- Serving the defendant with legal papers
- Discovery (exchanging information with the opposing side)
- Depositions and pretrial motions
- Mediation or settlement conferences
- Trial (if no settlement is reached)
- Possible appeals
Although the lawsuit process is more complex and time-consuming than filing a claim, it provides leverage when insurance companies refuse to offer fair compensation.
Which Path Is Right for You?
Most personal injury cases begin with an insurance claim and only proceed to a lawsuit if a settlement cannot be reached.
The right approach depends on your specific situation:
- Simple cases with clear liability and minor injuries are often resolved through the claims process.
- Complex cases involving serious injuries, disputed liability, or bad faith insurance practices may require litigation.
Working with experienced attorneys can help you determine the best strategy for your case. They can handle both the claims process and litigation if needed.
Contact Our Savannah Personal Injury Attorneys for a Free Consultation
It’s important to consult a lawyer early—especially if:
- You’ve suffered serious or long-term injuries
- Fault for the accident is unclear or disputed
- The insurance company is delaying, denying, or undervaluing your claim
- You’re unsure what your case is truly worth
Having experienced legal representation can make all the difference. A skilled attorney can explain the difference between a claim and a lawsuit and guide you toward the best path for recovering compensation.
At Bowen Painter Injury Lawyers, we evaluate every case with care and pursue the strategy that gives you the strongest chance at success. Contact us today at (912) 335-1909 for a free consultation.
