What’s the Right Move When the Stakes Are High?
Life can feel like it’s spiraling out of control after a car crash. Whether it’s painful injuries, property damage, or financial stress, it’s a lot to handle. If someone was negligent, you’re likely entitled to compensation. But where do you start? Should you file a claim or go straight to a lawsuit?
Understanding the difference between a claim and a lawsuit is a major first step. A claim involves asking for compensation, usually from an insurance company. A lawsuit takes that fight to court, where a judge or jury decides.
With a single phone call, our personal injury lawyers at Horn Wright, LLP, can explain the difference to you between a claim and a lawsuit. For now, let’s look at some of the basic differences between the two so you can choose the best path forward.
Understanding the Claims Process
A claim is usually the first step when you’ve been injured in an accident caused by someone else. In New York, this usually means dealing with an insurance company. The goal? To get compensation for your damages without going to court.
What is a Claim?
A claim is a request for payment that’s filed with the at-fault party’s insurance company after an accident:
- Car crashes on a busy street or highway: Think Broadway or I-87, where accidents can cause serious property damage or injuries.
- Slip-and-falls in stores or public places: These cases often involve poorly maintained sidewalks or wet floors.
- Workplace injuries: Scenarios where employers or other parties may be liable under their insurance policies.
For car accidents, under New York’s No-Fault insurance laws, you turn to your own insurance for paying your medical bills and getting your lost wages paid. Your No-Fault insurance pays those things, up to a total of at least $50,000, regardless of who was at fault.
If your injuries meet New York’s “serious injury” threshold, you can step outside the No-Fault insurance threshold and file a claim for pain and suffering against the at-fault driver’s insurance.
4 Steps to Mastering the Claims Process
Notify the Insurance Company
The clock is ticking from the moment the incident happens. Notify the responsible party’s insurance company as soon as possible. Delays can hurt your case and can even lead to a denied claim later on.
Compile Evidence
Start working on putting the evidence in your case together:
- Medical bills to show treatment costs.
- Repair estimates for damaged property like vehicles, especially when they’re totaled.
- Witness statements, police reports, or MV-104 forms to establish fault and corroborate your story.
Submit the Claim
Once you’ve got everything together, file your claim. The insurance company will open an investigation, reviewing police reports, medical records, and other details.
Handling Settlement Offers
- Initial Offers Are Often Low: Insurers aim to pay out as little as possible, it’s a common trick they play.
- Your Options: You can accept the offer, reject it, or make a counteroffer.
- When Negotiations Break Down: If you can’t reach a fair resolution, a lawsuit is going to be the next step.
Claims are usually much faster and less expensive than lawsuits. Insurance companies will still drag their feet, deny liability, or offer less than what your injuries and damages deserve. When that happens it’s time to escalate things.
Taking It to Court: When a Lawsuit Becomes Your Best Option
Sometimes, a claim just isn’t enough. If the insurance company denies your claim, offers an unfair settlement, or if your damages exceed policy limits, filing a lawsuit might be necessary. Unlike claims, lawsuits bring the matter to court, where a judge or jury determines the outcome.
Is It Time to File a Lawsuit? Know When to Take Action
Here are a few scenarios where lawsuit might ultimately be your best option:
- The insurance company denies your claim outright: If they refuse to pay, a lawsuit forces them to answer in court.
- Damages exceed the coverage available: This is especially relevant in catastrophic injury cases.
- You’ve suffered severe or life-changing injuries: Serious conditions like traumatic brain injuries, spinal cord damage, or permanent disability often require lawsuits to secure fair compensation.
Lawsuits can lead to higher compensation, but they also require more time, more effort and more expense, so it can be a balancing act for lower value cases of striking the right balance.
Breaking Down the Lawsuit Process: Step-by-Step to Justice
Filing the Lawsuit
A lawsuit begins with filing a formal complaint, usually in one of New York’s Supreme Courts for personal injury cases. This document will outline the details of your case, including what you’re seeking in damages. The defendant, i.e., the person or entity you’re suing, will then be notified once they’re served with it and must respond with an Answer.
Negotiation, Arbitration, and Mediation
Not every lawsuit goes to trial. Many cases actually settle before trial and some point during the ongoing litigation. Some typical points in a lawsuit where a case settles:
- Negotiation: Direct talks between you (or your lawyer) and the defendant’s legal team.
- Mediation: A neutral third party helps both sides reach a compromise. Mediation is non-binding, but it’s an opportunity to resolve disputes efficiently.
- Arbitration: A binding decision is made by a third party after reviewing evidence. Arbitration can feel like a trial but is usually faster.
Litigation
If no agreement is reached, your case goes to court. Both sides present evidence, question witnesses, and make arguments. Finally, the judge or jury decides the outcome.
While lawsuits require more time and resources, they can be worth it—especially if the stakes are high.
Claims vs. Lawsuits: Which Route Fits Your Case?
Not sure if you should settle for a claim or gear up for a lawsuit? Take a look:
Simplicity vs. Complexity
- Claims: Faster and simpler but may result in lower settlements.
- Lawsuits: More complex and time-consuming, with potential for higher compensation.
Consider These Factors
Before choosing, weigh these key considerations:
- Severity of Injuries: Minor injuries may not justify the time and effort of a lawsuit. Serious, long-term conditions likely will.
- The Full Scope of Costs: Add up medical bills, lost wages, future expenses, and emotional distress. If they exceed insurance limits, a lawsuit might be necessary.
- Your Time and Patience: Claims wrap up faster, while lawsuits can take months or even years.
Choosing the right path depends on your unique circumstances, but understanding the pros and cons of each helps make the decision clearer.
Why Professional Legal Guidance is Your Biggest Ally
Claims and lawsuits can be confusing, especially when you’re recovering from an injury. Here’s why having an attorney in your corner can make all the difference:
- They Know the System: New York’s no-fault insurance and comparative negligence rules can be nuanced and complex. A skilled personal injury lawyer can help you navigate these obstacles with confidence.
- Maximizing Compensation: Experienced attorneys know how to calculate your full damages, including future medical needs and lost earning potential. They’ll fight for every dollar.
- Stress-Free Negotiation: A personal injury lawyer will handle the back-and-forth with insurance companies or opposing counsel so you don’t have to.
- Representation in Court: If a lawsuit is your best option, they’ll build a strong case and advocate for you every step of the way.
Make the Right Choice: Call Horn Wright, LLP, Today
When life throws you a curveball, like a serious accident, deciding between a claim and a lawsuit can be confusing. The stakes are high, and the choices you make now can shape your financial and emotional recovery.
At Horn Wright, LLP, we’re here to guide you through the complexities of claims and lawsuits. Our personal injury attorneys are dedicated to securing the compensation you deserve so you can focus on healing.
Let us take on the fight, because your recovery matters most