Claim vs. Lawsuit
After an accident, you will likely hear the words “claim” and “lawsuit.” Both can help injured people seek money for their losses, but they work differently. A claim is usually a request for payment from an insurance company. A lawsuit is a case filed in court. You may start with a claim and later file a lawsuit if you cannot reach a fair settlement.
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What Is a Personal Injury Claim?
A personal injury claim asks an insurance company to pay for harm caused by an accident. For example, if another driver hits your car, you may seek no-fault benefits through the applicable insurer. Depending on the circumstances, you may also pursue a claim against the at-fault driver.
The insurer’s responsibility is to review what happened, who may be responsible, and how much you lost. It may ask for medical records, repair bills, and other proof. Then, it may offer a settlement.
You can accept the offer, ask for more money, or reject it. A lawyer can help you decide whether the offer covers your needs.
What Is a Personal Injury Lawsuit?
A personal injury lawsuit is a legal case started in court. The injured person, called the plaintiff, files papers against the person or business believed to be responsible, called the defendant.
A lawsuit may be needed if an insurer denies a claim, disputes fault, or refuses to offer fair payment. Both sides can share evidence and explain their positions under court rules.
A judge or jury may decide the case at trial. However, a lawsuit can also end in a settlement before trial.
Key Differences Between a Claim and a Lawsuit
Claims and lawsuits have the same basic goal: seeking payment for losses. Their main differences are:
- Where they start: Claims usually begin with an insurer; lawsuits begin in court.
- Who handles them: Insurance adjusters review claims; courts oversee lawsuits.
- Rules: Lawsuits have formal deadlines and steps set by law.
- Time and cost: Lawsuits can take longer and involve court expenses.
- Results: Either process may lead to a settlement, but a lawsuit may also lead to a verdict.
Ultimately, whether a claim or lawsuit is the better option depends on the circumstances of your case, the willingness of the parties to negotiate, and whether a fair settlement can be reached outside of court.
When Should You File a Claim?
You should generally report an accident to the proper insurance company as soon as you can.
Keep photos of the scene, contact details for witnesses, medical records, and receipts. Write down the days you missed work and the ways your injuries affect daily life.
Be careful when discussing your injuries with an insurance adjuster. Before signing a settlement agreement, make sure you understand what rights you may be giving up.
When Might a Lawsuit Be Needed?
A lawsuit may be the next step when settlement talks fail. For example, an insurer may say its driver was not at fault or may offer too little to cover your medical bills.
You may also need to file suit to protect your rights before a legal deadline expires. Starting an insurance claim does not usually pause that deadline.
Under New York law, many personal injury lawsuits have a three-year filing deadline. Different rules or shorter deadlines may apply, especially when a government agency is involved.
What Happens After a Lawsuit Is Filed?
A lawsuit is more complicated than an insurance settlement, with specific steps overseen by the court and strict deadlines that apply. First, pleadings must be filed with the court, and the defendant must be served. The defendant then gets a chance to respond.
Next, both sides may exchange documents, ask written questions, and interview witnesses under oath. This stage is called discovery. Lawyers may also discuss settlement throughout the case.
If no agreement is reached, the case may go to trial.
What Damages Can You Seek?
Depending on the facts and the law, a claim or lawsuit may seek payment for medical bills, missed paychecks, and future treatment. You may also seek money for pain and suffering.
For example, a broken arm might lead to emergency care, follow-up visits, and weeks away from work. A serious injury may require help for years.
The value of a case depends on the evidence, the harm you suffered, and who was responsible. Keep bills and other records so your losses are easier to explain.
Can You Settle Without Going to Court?
Yes. Many injury disputes end in a settlement rather than a trial. You and the insurance company may agree on an amount that resolves the claim.
However, signing a release usually means you cannot ask for more money for the same injury later. That can be a problem if you still need treatment or do not know your future costs.
A lawyer can review the offer and explain the terms before you decide. If the sides cannot agree, a lawsuit may remain an option, as long as the filing deadline has not passed.
Contact Rosenbaum Meier Personal Injury Lawyers for a Complimentary Case Evaluation With a New York Personal Injury Lawyer
After an accident, it can be hard to know whether to file a claim, accept a settlement, or take a case to court.
Rosenbaum Meier Personal Injury Lawyers can help you understand the next steps. Our team can also discuss insurance offers and the deadlines that may affect your case.
Contact us today at (212) 514-5007 for a free consultation with an experienced personal injury attorney.