Claim vs. Lawsuit: What’s the Difference?

When it comes to personal injury cases, the terms “claim” and “lawsuit” are often used interchangeably as if they mean the same thing. While both involve seeking compensation from an at-fault party after an accident, they differ and have unique implications. If you or a loved one has been injured and are deciding whether to file a claim or a lawsuit, understanding the difference between these terms is essential to making an informed choice. Let’s dive into it.

What Is a Claim?

A claim is a legal demand for compensation made to the at-fault party’s insurance company. It essentially helps to resolve a dispute without having to go to court. When you file a claim, you are generally requesting the insurance company to cover your losses and damages caused by their policyholder. Once you file a claim, you will most likely be dealing with insurance adjusters who investigate your claim, assess liability, and decide if you should be compensated and how much the insurance company will pay. Claims often involve a lot of negotiations, where you and the insurance company agree on a fair compensation amount.

Notably, most personal injury cases are resolved through filing a claim, making it quicker, less stressful, and less expensive. However, it is essential to be cautious as insurance companies are businesses, and they aim to minimize payouts to protect their profits. Having an experienced personal injury attorney by your side can help ensure you are not short-changed during negotiations.

What Is a Lawsuit?

On the other hand, a lawsuit refers to a formal legal action filed in a civil court. In most cases, lawsuits are filed when claim negotiations fall through or when the at-fault party’s insurance coverage isn’t enough to cover your losses. A personal injury lawsuit involves filing your complaint, detailing how the defendant’s actions caused your injuries and the damages you are entitled to. Then, there is a discovery phase where both sides (the plaintiff and defendant) exchange evidence, interview witnesses, and build their cases.

If no settlement is reached, the case goes to trial, where a judge or jury reviews the case and gives a verdict. Lawsuits can be lengthier and more expensive than resolving a claim. Additionally, although you might receive a higher award than a claim, this is not guaranteed, no matter how solid your case seems, and you could leave the courtroom empty-handed.

Should You File a Claim or Lawsuit?

Deciding whether to file a claim or a lawsuit depends on the specifics of your case and preference. If you are looking for a faster and less expensive resolution, filing a claim may be a better option. However, if the insurance company denies your claim or doesn’t offer a fair settlement, you may have to file a lawsuit. Filing a lawsuit doesn’t mean your case must go to trial. Many lawsuits are resolved through negotiations after the initial filing.

Ultimately, your decision will depend on the severity of your injuries, the strength of your evidence, the amount of compensation you are seeking, and your attorney’s advice.

Contact Hardball Law Today

If you’re unsure whether to file a claim or lawsuit, our experienced Towson personal injury lawyer serving Towson, Baltimore, and throughout Maryland is here to help. Contact Hardball Law at 410-494-7400 today for guidance.

Source:

americanbar.org/groups/public_education/resources/law_related_education_network/how_courts_work/discovery/#:~:text=in%20a%20Trial-,Discovery,-To%20begin%20preparing