When you’ve been injured as a result of the negligence of another party, you have a right to expect compensation. Imagine if you’re injured in a car accident and the doctor’s bills, costs for medication and therapy are accumulating.
You can’t work because of your injury and you suffer constant pain. You may be wondering whether you need to file a personal injury claim or a personal injury lawsuit.
Difference between a personal injury claim and a personal injury lawsuit
These are two different ways of seeking damages for your losses. A personal injury claim is between you and the insurance company. You will file a claim with the at-fault driver’s insurance company. The claims process consists of negotiations between you (or your attorney) and the claims adjuster at the insurance company.
This hopefully results in a settlement that satisfies both parties. For more complex personal injury claims, such as medical malpractice, you’re unlikely to receive a fair settlement without the help of a personal injury lawyer.
You will only file a personal injury lawsuit if the parties can’t reach a compromise and settlement negotiations break down. This may happen when the claims adjuster doesn’t agree with the extent of your injuries or the other person doesn’t admit to being at fault.
Going ahead with a personal injury claim
If you’re the victim, you will pursue a claim against the at-fault driver’s insurance company. The insurance company assigns a claim number and appoints a claims adjuster to handle it.
To settle the case, the claims adjuster has to have proof that the driver was negligent and that the injuries are severe enough to warrant settlement. The police report, photos of the accident, medical bills and witness statements all help to build up a picture of what took place.
During the negotiation process, the claims adjuster has to be convinced that you aren’t exaggerating your injuries and that they really required medical attention.
You also have to prove that your medical treatment costs were directly related to the accident. He has to believe that you were unable to work and earn an income due to your injuries and that you suffer from ongoing pain.
In most cases, your initial demands won’t be accepted. You are likely to be offered a lower amount, which you can either accept or continue to negotiate. Generally, it takes some negotiation to reach an amount satisfactory to both parties.
Once an agreement is reached, you will receive your compensation and sign a release form. Once you’ve signed and received your money, your claim is settled and you can’t seek further compensation.
Going ahead with a lawsuit
If you can’t reach a settlement, you may have to file a civil lawsuit. Unless you have been seriously or permanently injured, filing a lawsuit may not be in your best interests and arbitration may be a better idea if negotiation fails.
No-fault claims and lawsuits
Most vehicle insurance companies won’t pay out a claim unless it can be proved that their insured was completely to blame for an accident. In the past, proving fault could take up plenty of time and effort. To help prevent this, many states have gone for no-fault auto insurance laws.
If you live in a no-fault insurance state, your insurance company has to provide Personal Injury Protection (PIP) coverage. In most cases, you can’t seek compensation from the other driver and this cover does not include compensation for pain and suffering. Still, your medical bills and lost wages are covered no matter who caused the accident.