Shaaban & Biedgoly

When you’ve been involved in a car accident or motorcycle accident, one of the first steps in recovering compensation for your injuries is understanding the legal process. Many people think the only way to seek compensation from the at-fault party is to file a lawsuit. They wonder if there is a difference between a “personal injury claim” and “lawsuit.” Both terms are often used interchangeably, but they refer to different steps in the process of seeking compensation. This article will break down these two concepts, helping you navigate the path to justice with the assistance of a Folsom accident attorney.

What is a Personal Injury Claim?

A personal injury claim is typically the first step in seeking compensation after an accident. After a car accident or motorcycle accident, you would file a “claim” with the at-fault party’s insurance company, requesting compensation for your medical expenses, lost wages, pain, and suffering, and other damages caused by the accident. This process does not involve the court system and is primarily handled between you, the insurance company, and your attorney.

A claim is an out-of-court, administrative, procedure where you present your case to the at-fault party and/or their insurance adjuster. They evaluate the evidence of the accident, such as police reports, medical records, and witness statements, to determine the extent of the their liability. The goal is to reach a fair settlement without the need for a lawsuit.

Advantages of Filing a Claim:

Faster Resolution: Claims generally take less time than lawsuits to resolve. Insurance companies often settle claims quicker than lawsuits.
Lower Costs: Filing a claim does not require the expenses associated with a lawsuit, such as court fees, discovery costs, and attorney fees for trial preparation.
Less Stress: The claim process is less formal and generally less stressful than a lawsuit. It avoids the emotional strain of a courtroom battle. Many accident victims feel more comfortable resolving matters through the claims process rather than heading into a lengthy litigation process.

Challenges of Filing a Claim:

Insurance Company Disputes: Insurance companies are known for minimizing payouts, even when you have a legitimate claim. They may offer an amount that is less than what you deserve, and likely less than what you may be able to obtain through litigation, knowing that many claimants accept these low offers simply to avoid the hassle of a lawsuit.
Policy Limits: Insurance claims are restricted to the limits of the at-fault party’s insurance policy. If the damages exceed the policy limits, you may not be able to recover the full amount you are entitled to. This is especially important in cases of severe injuries where medical bills may quickly surpass the policy limits.

Common Reasons for Disputes in Personal Injury Claims:

Fault Disagreements: In many accidents, especially motorcycle accidents, there may be conflicting evidence about who was at fault. Insurance companies will often scrutinize accident reports, witness testimony, and video footage to determine the liable party. If there’s a dispute about fault, it could delay or complicate your claim.
Exaggerated Damages: Another challenge often arises when there is a dispute about the extent of the injuries. Insurers may argue that your injuries are not as severe as you claim or that pre-existing conditions are contributing to the symptoms. For this reason, documentation of injuries and medical treatment is essential.

What is a Lawsuit?

If your “claim” is denied or if the insurance company offers you an insufficient settlement, the next step may be filing a lawsuit. A lawsuit is a formal legal action filed in court. You, the plaintiff, are asking the court to resolve the dispute between you and the defendant, who is typically the at-fault party or their insurance provider.

A lawsuit is much more involved than a claim. It includes formal steps such as discovery (the process of gathering evidence), depositions (formal interviews under oath), pre-trial motions, and possibly a trial. You will need to prove the other party’s fault in causing the accident and demonstrate the extent of your injuries and damages.

Key Steps in a Lawsuit:

Filing the Complaint: This is the initial step where your attorney will draft a formal complaint that outlines the claims against the defendant. It will specify the damages you are seeking, the legal grounds for the lawsuit, and the facts surrounding the accident.
Discovery: Discovery is the phase where both sides exchange relevant information. This may include gathering medical records, accident reports, and witness statements. Your attorney will gather evidence to prove that the defendant was at fault.
Depositions: In a deposition, witnesses, including you and any experts, may be questioned under oath. Your attorney will prepare you for this process, ensuring you provide the most effective testimony.
Pre-Trial Motions and Settlement Negotiations: Before trial, your attorney will work on filing any motions that could help your case and will likely engage in settlement talks. A settlement offer might be made, and if accepted, it can resolve the case without the need for a trial.
Trial: If a settlement is not reached, the case will go to trial, where both sides will present their evidence before a judge or jury. The judge or jury will then decide on the outcome of the case.

Advantages of Filing a Lawsuit:

Higher Potential Compensation: Lawsuits allow you to seek compensation beyond what an insurance company may offer, including non-economic damages like pain and suffering, and in some cases, punitive damages. In a lawsuit, there are often no limitations on the types of damages you can pursue.
Third-Party Judgment: A lawsuit brings the case before a judge or jury, which can result in an unbiased decision based on the facts presented. Insurance companies are more likely to settle if they know a trial could result in a larger payout. A jury verdict can also offer a stronger message to negligent parties, especially if there’s evidence of reckless behavior.
Full Recovery of Damages: While insurance claims may be limited by policy caps, lawsuits can provide full compensation for both economic and non-economic damages. This may include lost income, ongoing medical care, rehabilitation, and emotional distress.

Challenges of Filing a Lawsuit:

Time-Consuming: Lawsuits can take months or even years to resolve. Discovery, depositions, and pre-trial motions can delay the process significantly. The complexity of the legal system means that even well-documented cases can drag on for extended periods.
Higher Costs: Lawsuits come with higher costs than claims. You will need to pay for court fees, expert witnesses, and more hours of legal work. If the lawsuit is not successful, the costs of litigation may be more than the settlement amount you were hoping to receive.
Uncertain Outcome: Unlike an insurance claim, which may be settled through negotiation, a lawsuit can be unpredictable. There is always a risk that the court may rule against you, or the jury may not find in your favor.

When Should You File a Claim vs. a Lawsuit?

Deciding whether to file a claim or a lawsuit after a car accident or motorcycle accident depends on the specifics of your case. Here are some scenarios to consider:

When to File a Claim: If you have a relatively straightforward case with clear evidence that the other party was at fault, a claim may be sufficient. Insurance companies often prefer to settle these types of cases quickly, which can result in a faster resolution without the need for a lengthy legal battle. Claims are also more appropriate when damages are not significant, and the at-fault party’s insurance policy can cover them.
When to File a Lawsuit: If the insurance company denies your claim or offers an unreasonably low settlement, a lawsuit may be necessary to secure fair compensation. A lawsuit can also be necessary if the at-fault party’s insurance coverage is insufficient to cover all of your damages. In some cases, a lawsuit may be the best way to get the compensation you deserve, especially if the at-fault party’s actions were particularly negligent or if the injury has long-term consequences that need more extensive compensation.

How a Folsom Accident Attorney Can Help

Navigating the legal process after a car accident or motorcycle accident can be overwhelming. An experienced Folsom accident attorney at Shaaban & Biedgoly can help you understand your options, whether it involves filing a claim or a lawsuit. Here’s how an attorney can assist you throughout the process:

Evaluating Your Case: Your attorney will assess the strength of your case, including the evidence you have to support your claims and the likely response from the insurance company. This evaluation can help determine whether a claim or a lawsuit is the better option for your situation.
Negotiating Settlements: If you pursue a claim, your attorney will negotiate with the insurance company on your behalf to secure a fair settlement. They can handle all communications, ensuring you are not pressured into accepting a low offer.
Filing a Lawsuit: If your claim is unsuccessful or if the settlement offer is inadequate, your attorney can file a lawsuit to pursue further compensation. They will handle all the legal complexities involved in the litigation process, from gathering evidence to presenting your case in court.
Maximizing Your Compensation: Whether through a claim or a lawsuit, your attorney will ensure you pursue all available compensation for your injuries, including medical bills, lost wages, property damage, pain and suffering, and future medical care. Their goal is to help you recover the fullest compensation possible under the law.

Conclusion

While the terms “claim” and “lawsuit” are often used interchangeably, they represent distinct stages in the process of seeking compensation for a car accident or motorcycle accident. Claims are generally quicker, more cost-effective, and less stressful. Lawsuits, on the other hand, can potentially offer higher compensation but come with greater complexity, time, and cost.

Whether you choose to file a claim or a lawsuit, having an experienced Folsom accident attorney by your side can make all the difference.

If you’ve been injured in an accident, contact Shaaban & Biedgoly today for your FREE consultation!