After an accident, you may hear the terms claim and lawsuit. While they’re related, they aren’t the same thing. Knowing the difference can help you understand your legal options to recover compensation after an injury.
Here’s what you need to know about claims and lawsuits in a personal injury case.
What Is a Personal Injury Claim?
A personal injury claim is the first step in seeking compensation when you are hurt due to someone else’s intentional or negligent actions. It’s usually filed with the at-fault party’s insurance company. You or your lawyer will submit a claim to explain what happened, why the other party is at fault, and how much money you’re asking for.
The goal of a claim is to reach a fair settlement without going to court.
For example, if a careless driver hit you in a car accident, you would submit a claim to their insurance company for your losses. You may request payment for medical bills, car repairs, and lost wages.
Motor vehicle accidents are the most common type of personal injury claim.
Other common types include
- Workplace accidents: Workers’ compensation claims are submitted to an employer’s insurance company.
- Slip and fall accidents: These claims are filed with the property owner’s insurer.
- Dog bites: Claims are submitted to the dog owner’s homeowners’ insurance company.
In most cases, a settlement is reached, and the claim is paid out.
What Happens During a Claim?
Here’s a basic overview of how the claims process works:
- Investigation: Your attorney will gather evidence like photos, medical records, and witness statements. They will determine how your accident happened and calculate your full damages.
- Demand letter: Your lawyer will send a letter to the insurance company with a detailed request for compensation.
- Negotiation: The insurance company may accept the demand, offer less, or deny the claim. It’s common for your lawyer and the insurer to go back and forth to reach an agreement.
- Settlement: If both sides agree on an amount, the case ends with a signed settlement agreement.
Claims are faster and less expensive than lawsuits. But sometimes, insurance companies won’t play fair. That’s when a lawsuit may be needed.
What Is a Personal Injury Lawsuit?
A lawsuit is a formal legal action filed in court. If your injury claim doesn’t settle, your lawyer may file a lawsuit to present your case to a judge or jury.
Lawsuits are more complex than claims. They follow strict legal rules, timelines, and court procedures.
When Should I File a Lawsuit?
You may need to file a lawsuit if:
- The insurance company denies your claim.
- They offer far less than your case is worth.
- Your injury is serious or catastrophic.
- Multiple parties share fault but can’t reach a consensus on liability.
- Your damages exceed the at-fault party’s insurance policy limits.
Once a lawsuit is filed, court proceedings begin.
What Happens During a Lawsuit?
Lawsuits unfold in several steps.
Here’s what to expect:
- Filing the complaint: The attorney files a legal document that outlines the plaintiff’s case and who is being sued.
- Service of process: The person or business being sued is officially notified.
- Discovery: Both sides exchange evidence, documents, and witness information.
- Depositions: Lawyers interview witnesses under oath.
- Motions: Either side can ask the judge to rule on parts of the case before trial.
- Mediation: Both parties try to reach an agreement through a neutral third party.
- Trial: If no settlement is reached, the case goes to trial, where a judge or jury decides the outcome.
Most lawsuits settle before trial. In fact, only about 5% of personal injury lawsuits that are filed make it to trial.
The Benefits of Claims and Lawsuits
Most personal injury cases begin with a claim. It’s worth negotiating with the insurance company and trying to reach an agreement this way because going to court is expensive and time-consuming. The claims process may take a few months, but a trial can drag on for a year or longer. Most personal injury attorneys also charge a higher contingency fee for cases that proceed to a lawsuit to account for the higher costs and time commitment.
Going to court also introduces more risk. There is no way to know what a jury will decide. You may not recover more than the insurance company was prepared to offer in a settlement, despite the extra expense and time.
If the insurance company makes a fair offer, you can move on without the stress of a lawsuit. But if they won’t treat you fairly, filing a lawsuit may be your best option.
If your case qualifies, a lawsuit may offer another benefit: the opportunity to seek punitive damages. These damages can be requested to punish the defendant for causing harm through reckless, fraudulent, or intentional behavior. In Indiana, punitive damages are capped, and victims only receive 25% of the amount awarded.
Schedule a Free Consultation With Our Indianapolis Personal Injury Lawyers Today
If you need help filing a claim or a lawsuit, Rob King & Associates, Trial Lawyers, is here to help. We have been representing personal injury victims in Indianapolis for decades and have recovered millions of dollars in damages.
Contact our law office today at (317) 916-0000 to schedule a free consultation with an Indianapolis personal injury attorney.
