When it comes to personal injury accidents, you might hear the terms claim and lawsuit used frequently. Some people may even use them interchangeably. However, there are some big differences between the two.
One of the biggest differences between a claim and a lawsuit is that a lawsuit goes through the court system. Many accident victims believe that all personal injury claims end up in court. However, that is not the case. The vast majority of claims are settled prior to going to trial.
If you have been hurt in an accident, keep reading below to learn all the differences between a claim and a lawsuit.
What Is a Personal Injury Claim?
A claim is simply a formal request that the insurance company pay for certain damages as required under the terms of the policy. You may file a claim with your own insurance company or someone else’s insurance company. For instance, it is common after a car accident to file a claim with the at-fault driver’s insurance.
The claims process looks generally the same regardless of whose insurance is used. The common steps included in a claim are:
- Initiate the claim with the insurance company.
- Provide all necessary details about the claim.
- The insurance company assigns an adjuster.
- The adjuster reviews the claim and makes a decision.
- The claim may be paid or denied.
Denied claims may lead to lawsuits. Even though claims do not go through the court system initially, many accident victims choose to hire a personal injury attorney to help them with the claims process.
What Is a Lawsuit?
A personal injury lawsuit is a court action filed against the at-fault party to recover damages. Victims who file lawsuits generally seek both economic and non-economic damages. Lawsuits go through the civil court system and must follow all the rules of the court.
Most personal injury lawsuits follow the same general process. That process is as follows:
- A lawsuit is filed.
- The defendant responds to the allegations.
- The discovery process begins.
- Settlement negotiations take place.
- If no settlement is reached, a judge or jury will hear the case.
- A judgment is entered after the trial concludes.
After the judgment is entered, both parties are bound by the judge’s or jury’s decision. While there are some opportunities for an appeal, the court’s decision is typically final. Personal injury lawyers are almost always hired for lawsuits. They can file your action in court and represent you throughout the lawsuit process.
Pros & Cons of Claims And Lawsuits
Claims and lawsuits can both be used to recover compensation for damages after an accident. However, each process has its own set of advantages and disadvantages. In some cases, a claim might be the best option. However, a lawsuit might be the right way to go at other times.
Advantages and Disadvantages of Personal Injury Claims
Personal injury claims are used often after an accident because they offer many benefits. Some common advantages of a personal injury claim include:
- You can recover compensation more quickly.
- There are lower overall costs.
- There are fewer formalities and less paperwork required.
- There is more wiggle room for negotiating the final settlement amount.
Claims also have some drawbacks, including:
- Some insurance companies may intentionally delay your claim.
- An insurance company might make you a lowball offer.
- Your claim settlement might not cover all your damages.
An experienced personal injury attorney can help you decide whether a claim is right for your situation.
Advantages and Disadvantages of Personal Injury Lawsuits
Lawsuits are sometimes necessary to get the compensation you deserve after an accident. Lawsuits can provide several benefits, including:
- The insurance company is forced to take your case seriously.
- A lawsuit may result in higher settlement amounts than a claim.
- You could be entitled to punitive damages.
Even though lawsuits have some benefits, they are not perfect. A few of the drawbacks of a lawsuit include:
- Lawsuits can get expensive, especially for complex cases.
- Lawsuits can be lengthy, so it might take longer to get your compensation.
- There is no guaranteed outcome with a lawsuit.
Whether you need to file a simple claim or a lawsuit, a lawyer can help you through the process.
How Long Do I Have to File a Lawsuit in Georgia?
Georgia law specifies a two-year statute of limitations for most personal injury lawsuits. This means that any lawsuit arising from your accident must be filed within two years of the date of the accident. Failure to file a lawsuit before this deadline can cause you to lose all your rights to recover compensation for your injuries.
Some insurance companies also place time limits on claims. In some cases, you may only have 30 days to file a claim after an accident. Missing this deadline might cause your claim to be denied. However, you might still have a legal right to bring a lawsuit for your damages.
How Can I Get Help With a Personal Injury Claim?
An experienced personal injury lawyer can help you determine the best path forward after an accident. In many situations, a claim might be the right way to start. However, sometimes a lawsuit is needed almost immediately.
Either way, the team at Spartan Car Accident & Personal Injury Lawyers can help you recover compensation for your injuries after an accident. We can help you through the claim or lawsuit process from start to finish. Contact us today at (844) 772 7826 to schedule a free consultation with an Atlanta personal injury lawyer and learn more about how we can help.