If you have been injured in an accident, you may have a right to recover damages from the at-fault party or their insurance company. You might decide to file a claim or lawsuit to recover the compensation you are owed for your damages. However, many people do not know the distinction between a claim and a lawsuit.
Some may use the terms interchangeably, but there are some big differences between claims and lawsuits. The biggest difference is that a lawsuit ends up in court, while a claim does not go through the court system. Explore all the details below to learn the key differences between claims and lawsuits.
What Is a Claim in Personal Injury Accidents?
A claim is typically a formal request or demand for compensation given to the at-fault party or their insurance company. After an accident, the victim may file a personal injury claim with the responsible party or their insurance company. As part of the claim, the victim would include evidence proving liability as well as proving their damages.
Since most claims are settled out of court, filing a claim will typically lead to settlement negotiations. If an insurance company is involved, an adjuster will usually be assigned to the claim. The insurance adjuster will review the claim and all documentation submitted along with it.
In some cases, the adjuster may agree to pay the claim as it was submitted. In other cases, they may reject the claim or make a counteroffer for a lesser amount. Although you may be able to avoid filing a lawsuit, it is still a good idea to consider using a personal injury attorney to help you through the claims process. This is especially true for complex claims, like those involving truck accidents or catastrophic injuries.
What Is a Personal Injury Lawsuit?
A personal injury lawsuit shares many of the same features as a personal injury claim. The victim may use a lawsuit to hold the at-fault party responsible for their economic and non-economic damages. However, a lawsuit would be filed in civil court instead of directly with the insurance company or at-fault party.
Once the lawsuit is filed, the opposing party would receive notice of the lawsuit. They would have an opportunity to respond to all the allegations contained in the lawsuit. Since a lawsuit must follow the Illinois Rules of Civil Procedure, the processes and steps in a lawsuit are more formal than a simple claim.
The parties to the lawsuit will gather evidence through the discovery process. Once all the evidence has been gathered, settlement negotiations will typically begin. Even though a lawsuit is filed in court, a very small percentage of lawsuits go all the way to trial. Most lawsuits are still settled before going to trial.
If the lawsuit does make it to trial, a judge or jury will hear the case. The decision rendered by the court will be binding on both parties. An experienced personal injury lawyer can help you file a lawsuit and navigate the legal process associated with it.
Claims vs. Lawsuits: Key Advantages & Disadvantages
There are times when a claim will work just fine to get you the compensation you are owed. However, sometimes a simple claim is not enough. Both claims and lawsuits have their advantages, but they each have some drawbacks as well. Some of the key differences between the two are:
- Time to resolution: A claim is usually resolved much quicker than a lawsuit. Simple claims can be resolved in just a few weeks, while lawsuits can take months or more than a year in some cases.
- Costs: A claim might net you more money in your pocket than a lawsuit in some situations. This is because a lawsuit requires court costs, increased attorney’s fees, and other case expenses. However, lawsuits can result in higher settlements that more accurately reflect the value of your case.
- Who decides the outcome: A claim allows both parties to have input on the ultimate outcome of the claim. Both sides can negotiate and come to an agreement. However, a lawsuit allows an objective third party to decide the outcome of your case.
- Formality: Claims are typically much less formal than lawsuits. There is usually less paperwork involved, and the rules of evidence are more relaxed. Lawsuits must follow the strict rules of the court, and there is little leeway for adjustments.
Sometimes, you may have no choice but to file a lawsuit in order to get the damages you are owed. Insurance companies may intentionally drag out your claim to put you in a bad financial situation. By doing so, they may be able to get you to agree to a settlement that is less than what your case is worth.
Additionally, the insurance company may not take your claim seriously. Even though you may have a valid claim, they could choose to deny it or downplay your injuries. A lawsuit might be required to get them to take you seriously.
Choosing Between a Claim or Lawsuit
If you need help determining whether you should pursue a claim or lawsuit, you should seek the advice of an experienced personal injury lawyer. The best option for you depends on the facts of your situation. Contact a dedicated Chicago personal injury attorney at Powell and Pisman Injury Lawyers to learn more and schedule your free consultation today at (312) 635-5400. We can answer all your questions and advise you on the best way to get the compensation you deserve.