If you’ve been injured in an accident in Georgia that wasn’t your fault, like a car accident, you’ve probably heard the terms “claim” and “lawsuit” used interchangeably. However, they’re actually two different things in many contexts, and learning about the distinction matters. The path your case takes can affect everything from how long it lasts to how much effort is involved along the way.
Most personal injury cases start as insurance claims and never make it to the lawsuit stage. That said, there are situations where filing a lawsuit becomes necessary or at least is simply in your best interest. Read on to learn how each process works and what factors might push your case in one direction or the other.
What Is a Personal Injury Claim?
A personal injury claim is typically the first step you’ll take after an accident caused by someone else’s negligence. In most cases, this means filing a claim with the at-fault party’s insurance company. Your attorney will investigate the accident and then send what’s called a demand letter to the insurer. This letter outlines what happened and the amount of compensation you’re seeking.
From there, the insurance company will either accept the demand, deny the claim, or make a lower counteroffer. In the vast majority of cases, this kicks off a negotiation process between your attorney and the insurance adjuster.
It’s important to remember, however, that insurance companies are businesses at the end of the day. Their goal is to pay out as little as possible and will use a range of tactics designed to reduce their liability and protect their profits. Having a lawyer handle these communications on your behalf can make a significant difference in the outcome.
If negotiations go well and both sides can agree on a fair number, the case is resolved through a binding settlement agreement. The vast majority of personal injury cases end this way.
What Is a Personal Injury Lawsuit?
A lawsuit is a formal legal action filed in civil court. Broadly speaking, in most cases, it’s the next step when the insurance claims process doesn’t produce a fair result. Filing a lawsuit doesn’t necessarily mean your case is going to trial, but it does move things into the court system and opens up new tools that can help strengthen your position.
There are a few common reasons why a lawsuit might become necessary in a Georgia personal injury case:
- The insurance company refuses to make a reasonable settlement offer
- The insurer denies your claim entirely
- Liability is being disputed, and the other side won’t accept responsibility
- The case is complex and involves issues that need to be resolved in court
Once a lawsuit is filed, both sides enter the discovery phase. During discovery, your attorney can request documents and other information from the other party that may not have been available during the claims process. This can sometimes reveal evidence that significantly strengthens your case.
Note as well that settlement negotiations can continue after a lawsuit is filed; a trial occurs only when the two sides truly cannot reach an agreement.
Are the Available Damages Different in a Claim vs. a Lawsuit?
The types of compensation available to you are generally the same whether your case settles through an insurance claim or goes through the court system. In both situations, you can pursue economic and non-economic damages, which together are referred to as “compensatory damages.”
Economic damages cover your financial losses, such as:
- Medical bills and future treatment costs
- Lost wages and reduced earning capacity
- Property damage
- Out-of-pocket expenses
Non-economic damages account for the personal impact of your injuries, including:
- Pain and suffering
- Emotional distress
- Loss of enjoyment of life
- Mental anguish
The one area where a lawsuit may offer something an insurance claim cannot is punitive damages. These are only available in personal injury cases that go to trial in Georgia and are reserved for situations where the defendant’s conduct was especially egregious.
Contact the Atlanta Personal Injury Lawyers at Rafi Law Firm for Help Today
Were you recently injured in an accident that wasn’t your fault in Georgia? You may be entitled to compensation by taking legal action, whether through a personal injury claim or by filing a lawsuit.
Rafi Law Firm helps injured individuals understand their options and pursue compensation through the path that best fits their case. Our team can evaluate your situation, handle negotiations with insurance companies, and take your case to court if necessary. Contact our Atlanta personal injury lawyers at (404) 800-9933 today to learn more about your legal rights and next steps.
