Claim vs. Lawsuit
If you’ve been hurt in an accident in Alaska—whether from a car accident, a slip and fall, or something else—you may have heard about filing a claim or a lawsuit. These two legal actions are part of the personal injury process, but they are not the same thing. Knowing the difference can help you understand your rights and what steps to take after an injury.
This article breaks it all down in clear, simple terms so you can make the best decisions for your situation.
What Is a Personal Injury Claim?
A personal injury claim is usually the first step you take after getting injured. A claim is when you (or your lawyer) contact the insurance company of the person or company that caused your injury. This could be an auto insurance provider after a car crash or a business’s insurance company after a fall in their store.
You might not go to court when you file a claim. Instead, you’re trying to settle with the insurance company. To settle means the insurance company agrees to pay you a certain amount of money to cover your medical bills, lost wages, pain and suffering, and other losses.
Most personal injury cases start with a claim and are settled out of court. This process is usually faster and less expensive than a lawsuit. Filing a claim is a way to attempt to resolve issues without the need for formal litigation against the other party.
What Is a Personal Injury Lawsuit?
A personal injury lawsuit is different. This is when you officially take legal action by filing a complaint in court. You (the injured person, called the “plaintiff”) are suing the person or business (the “defendant”) who caused your injury.
Lawsuits typically happen when the insurance company refuses to pay a fair settlement or denies the claim completely. If the other side is not willing to settle, your lawyer may decide it’s time to go to court.
Once a lawsuit is filed, there will be a process that includes:
- Discovery, for gathering evidence and witness statements
- Depositions, or formal interviews
- Possibly a trial, where a judge or jury decides who is at fault and how much money you should receive
Lawsuits take longer than claims and can be more stressful. However, sometimes they are the only way to obtain fair compensation. A lawsuit is generally the next step if a claim doesn’t result in a fair resolution.
Main Differences Between a Claim and a Lawsuit
While both a claim and a lawsuit are methods for seeking compensation after an injury, the primary differences lie in their operational processes and the parties involved.
In a claim, you’re dealing mostly with insurance adjusters. It’s more about negotiation, and your goal is to reach a fair settlement without having to go to court.
In a lawsuit, you’re working through the court system, possibly with judges, lawyers, and even a jury. It’s a legal fight that can take months or years. Additionally, once a lawsuit is filed, the process becomes a public record, whereas claims are private matters between you and the insurance company. Understanding these differences helps you choose the best path forward.
When Should You File a Claim?
It’s almost always best to start with a claim. If you’ve been hurt and someone else is responsible, you can file a claim with their insurance company. Your lawyer can help gather evidence, like medical records or police reports, to support your case.
If the insurance company offers a fair settlement, you may be able to resolve the matter without ever stepping into a courtroom. Filing a claim first is often the simplest and fastest way to get compensation.
When Should You File a Lawsuit?
If the insurance company denies your claim, delays payment, or offers far less than what your injury is worth, it may be time to file a lawsuit.
This is especially true if:
- Your injury is severe.
- Medical costs are high.
- You’ve lost wages or can’t work anymore.
- The insurance company is acting in bad faith.
In Alaska, the law typically gives you two years from the date of your injury to file a personal injury lawsuit. If you miss this deadline, you could lose your right to compensation forever. Sometimes, a lawsuit is necessary to assert your rights and hold others accountable.
Contact Our Anchorage Personal Injury Attorneys at Farnsworth & Vance Personal Injury Lawyers
Dealing with an injury is stressful enough. Understanding the difference between a claim and a lawsuit can take away some of the confusion and help you move forward. In most cases, starting with a claim is the best option. If that doesn’t work, a lawsuit may be the right next step.
No matter where you are in the process, it’s important to know your rights—and not settle for less than you deserve. If you need help with a legal matter, call Farnsworth & Vance Personal Injury Lawyers. You can schedule a free consultation with one of our Anchorage personal injury attorneys at (907) 290-8980 to determine your next best steps.
