Difference Between Insurance Claims And Lawsuits

Accidents are not something a person can predict; they come on suddenly and without warning. While victims can take preventative steps to reduce the risk of an accident, sometimes, an accident may still occur despite these efforts. For victims, it can be challenging to move forward with legal action. While it may seem unattainable to some, others may not believe their damages are significant enough. However, seeking counsel from an experienced personal injury lawyer first is vital before giving up hope. Not only can a lawyer review the case, but they can also help victims to determine the proper type of action to take and explain the difference between personal injury claims with the insurance company and filing a lawsuit with the legal system.

Personal Injury Claims

As a personal injury lawyer like those from Tuttle Law, P.A. can explain, after an accident that resulted from negligence, victims have a right to take legal action against the responsible party. Common types of accident cases that a lawyer may represent involve:

  • Car Accidents
  • Trucking Accidents
  • Pedestrian Related Accidents
  • Premises Liability Cases
  • Medical Malpractice
  • Work-Related Accidents
  • +More

In most cases, a lawyer will recommend that victims first attempt to receive a settlement through the claims process, which involves submitting a demand letter to the insurance company outlining the losses and negotiating a settlement with the defendant’s insurance company. There are several benefits to attempting to settle with the insurance company. Through negotiations, victims have the opportunity to receive a fair settlement in a timely manner, which could result in a faster payout and reduced legal fees. In addition, victims have peace of mind knowing they are far less likely to walk away empty-handed through the claims process. However, if negotiations fail and parties cannot agree, their lawyer may recommend they pursue a lawsuit.


A lawsuit is when the victim of an accident takes legal action through the court process. However, when engaged in a lawsuit, the decision is left to the court to determine whether the plaintiff will receive a settlement. During this process, the plaintiff files a lawsuit against the negligent party. The plaintiff holds the burden of proof and is responsible for providing evidence proving their claims are more true than not. Ultimately, the outcome is decided by the court. Much of the time, compensation is determined through negotiations involving each party, but when parties cannot reach an agreement, the court will decide the appropriate compensation amount. One of the most significant advantages of going to court for compensation is receiving much higher compensation than may be awarded through the claims process. However, pursuing a lawsuit can have a few downsides. Not only might it take longer to resolve, but this form of litigation can also put victims at risk of walking away with nothing if a judgment is not ruled in their favor.

Contacting a Lawyer with Experience

Depending upon the nature of the case and the damages that the victim experienced, there are two options- pro se representation (representing yourself) or seeking representation from a lawyer with personal injury experience. Although in some cases, when losses are under a certain amount, it may make sense to move forward without a lawyer, it’s essential to first consult with a lawyer on how to proceed. Help from a lawyer offers several advantages. Not only can victims have a higher likelihood of a positive outcome, but they also give themselves the ability to receive a higher settlement than if they had negotiated it on their own. Most importantly, with help from a lawyer, victims have the opportunity to put their recovery first while a professional takes the lead in managing the legalities.