People unfamiliar with the law often use the terms lawsuit and insurance claim interchangeably, and although there are similarities between them, they are not the same thing. 

After a car accident, you may want to get compensation for treating your injuries and covering other damages. You can do this by either filing an insurance claim or a lawsuit against the liable party. However, you must understand the differences between them before proceeding. 

To understand whether a lawsuit or an insurance claim would be right for you, you can hire a Lehi, UT car accident lawyer and consult them about your case. Your attorney can help you and work for the best possible outcome. 

What is a car accident insurance claim?

In almost all the states of the USA, drivers are legally required to carry car insurance to compensate them in cases of accidents. Even if you are financially stable enough to afford healthcare and vehicle repairs, you will still need insurance. When someone’s negligence causes an accident and injures you, their car insurance kicks in. 

An insurance claim is a compensation claim against the liable party’s insurance company. It is a formal request to the other party to reimburse you for the losses they have caused. For this, you need to establish the other party’s liability and produce proof of your injuries and other damages. This procedure does not require the involvement of the court and can be settled privately.

What is a car accident lawsuit?

Suppose you demand a specific amount from the liable party’s insurer, and they refuse to give that to you. Instead, they make another offer of a lower amount or altogether refuse to pay you. In such cases, you can take the matter to court with the help of a car accident attorney and file a lawsuit.

A victim of a car accident can attempt to seek compensation through an insurance claim and lawsuit. The difference is that an insurance claim takes place outside of court and settles in private, whereas a lawsuit takes place in a courtroom in front of the jury. 

Should I file for a car accident lawsuit or an insurance claim?

If you have acquired injuries because of someone else, it would be better to speak with the liable party privately and arrive at a settlement without going to court. Court cases can have extra costs and take a long time to settle. In case the liable party does not agree to a settlement, you can further file a lawsuit. Inside the court, you will have the opportunity to present your arguments and evidence before the judge. The judge hears both sides and determines an outcome.