When you get hurt in an accident, like a car crash or a slip and fall, you may have the right to financial compensation. Two common ways to seek that recovery are through a claim or a lawsuit. Although these words sound similar and are often used interchangeably, they refer to different ways to seek compensation for damages you have suffered.
Continue reading to learn more about the difference between a claim and a lawsuit.
What Is a Claim?
A claim is the first formal step in asking for money after an injury. Typically, it means submitting a written request to an insurance company.
Common types of claims are:
- Motor vehicle accident claims submitted against an auto insurance policy
- Workers’ compensation claims after a workplace accident
- Premises liability claims against a property owner or a commercial liability insurance policy
- Dog bite claims against a dog owner or their homeowners’ insurance policy
Many people go through a car accident claim at some point in their lives, even if it involves property damage only. Because Florida is a no-fault state, you will usually submit a claim to your own insurance company. If your injuries are severe enough, you can pursue a claim against the at-fault party’s policy.
What Is the Claims Process?
Here’s how a claim works:
- You or your lawyer put together the facts of the case and collect evidence of negligence to support your claim
- Your lawyer prepares a demand letter outlining what happened, who was at fault, your injuries, and the amount you’re asking for
- The demand letter and supporting documents are sent to the insurer or the responsible party
- The insurance company reviews it and decides whether to make an offer, ask for more information, or deny the claim
- The lawyer and insurance company negotiate and try to reach a fair settlement agreement
Submitting a claim is usually the first step in seeking compensation because it’s faster and less expensive than a lawsuit. Most personal injury cases begin and end with the claims process. But sometimes, insurance companies won’t play fair. That’s when a lawsuit may be needed.
What Is a Lawsuit?
A lawsuit is a formal legal proceeding filed in court. After an accident, you may begin with a claim and proceed to a lawsuit if a settlement isn’t reached. You may also proceed directly to a lawsuit against the at-fault party.
While most people can handle an insurance claim without a lawyer, a lawsuit requires following specific rules that are difficult to navigate without help. There are strict timelines, court procedures, and rules for everything from submitting evidence to notifying the other party.
What Is the Lawsuit Process?
Here’s how a lawsuit works:
- Your attorney prepares a document called a Complaint. This document outlines what happened, who’s responsible, and the damages you are seeking.
- The Complaint is filed with the court and officially served on the person or company you’re suing (the defendant).
- The defendant has a specific time limit to answer, usually by denying fault or the amount you want.
- Both sides exchange documents and evidence in a process called discovery.
- Mediation may be ordered to try to resolve the case without a trial.
- If that fails, the case goes to trial before a judge or jury.
- Finally, the court issues a judgment, assigning liability to each party and potentially awarding damages.
A lawsuit is more expensive than a claim and takes longer to resolve. Along with court fees, you will likely pay a higher contingency fee if your case goes to court.
Should You File a Claim or Lawsuit?
It’s almost always best to begin with a claim. Your case can likely be settled without a lawsuit if you have clear evidence of fault, especially if your injuries are mild to moderate.
It may be the right choice to file a lawsuit if:
- The insurance company denies your claim or refuses to make a fair offer
- You are being blamed for your accident
- You suffered serious or catastrophic injuries
- You need to force the other party to give you evidence supporting your case through discovery
- Your case is complex and involves multiple parties
- Your damages exceed the at-fault party’s insurance coverage
- You are approaching the statute of limitations, which is typically two years from the date of injury in Florida
Even after filing, most cases settle before trial. About 95% of cases filed in court settle before trial. A lawsuit is often a tool to give you legal leverage and improve your chances of recovering what you deserve.
A claim is often your quickest, easiest path to compensation. A lawsuit is a powerful step that may lead to greater recovery, especially for severe or disputed cases. Yet court cases take longer and can be stressful and costly.
Call Our St. Petersburg Personal Injury Lawyers for a Free Consultation
If you have been injured, don’t wait to take action. Contact us at Graves Thomas Rotunda Injury Law Group for a free case review. Call us at (772) 569-8155 to speak with a St. Petersburg personal injury attorney who can explain your options, answer questions about your case, and help you take the next step toward financial recovery.
