What Is the Difference between a Personal Injury Claim and a Lawsuit?

When a person is injured in an accident that has been caused by someone else’s negligence, the injured party can either make a personal injury claim or file a lawsuit in order to receive financial compensation from the insurance company of the negligent party.

Personal Injury Claim

In most cases, the injured party will submit a personal injury claim with the insurance company which will then decide to accept or reject the claim. In a “no fault” state like New York, the claim is first filed with one’s own insurance company, while in “at fault” states the claim is made towards the negligent party. This process does not involve going to court, but the case is settled through negotiations with the individual or their lawyer and the insurance company.

Personal Injury Lawsuit

In cases where a personal injury claim is unfairly rejected or unduly delayed by the insurance company, or when there could have been more financial compensation than what is offered, one can file a lawsuit against the insurance company which is liable to pay for the injuries. Filing a personal injury lawsuit involves taking the case to court. There are certain costs and fees associated with filing a lawsuit. It is wise that you consult with a personal injury lawyer before doing so. If the case cannot reach a fair settlement after the filing of a lawsuit, it will be scheduled for a trial.

Filing a personal injury claim or lawsuit can be very complicated. Insurance companies often try to pay less than they should towards the injured victims because it is in their best interest to pay as little as possible. If you have been seriously injured in an accident that was not your fault - it could be a car accident, accident at your work place, or a slip and fall accident - it is always prudent to talk to an experienced personal lawyer to ensure that you receive the maximum financial compensation.