Car Accident Lawsuits vs. Auto Insurance Claims

When you’ve been in a car accident, you might be wondering whether you should file a car accident insurance claim or a car accident lawsuit. It’s easy to get confused between the two, but there are important differences, as well as advantages and disadvantages to each.

What Are Insurance Claims and Car Accident Lawsuits?

An auto insurance claim is when you submit an accident claim to an insurance provider requiring a settlement amount because you were involved in an auto wreck. You could submit your claim to your own insurance company, and they would owe you compensation for your losses and damages, in accordance with the terms set forth in your insurance policy.

If you submit a claim to another driver’s insurance company, you are requesting that they offer you a settlement for your damages. This is a little different than if you submit your claim with your own insurance provider, because there is no contract that exists between you and that insurance company.

You are submitting a claim that shows them that if you were to file a lawsuit, they could lose and owe you money. Insurers generally want to avoid going to court, if at all possible, so if they believe you have a good case, they will pay you a settlement amount.

A car crash lawsuit, conversely, is when you take your claim to civil court. It will then be heard by a judge, just like any other case. If you win by proving that you were harmed in the accident and that you have losses, the court will order that you are to be paid a monetary award as recompense for those damages and your suffering.

When Do You File an Insurance Claim and When Do You File a Lawsuit?

When you were the at-fault driver, then you can only file an insurance claim with your own insurance company.

That means that you were the driver who carries the largest portion of blame for the accident. Your insurance policy should cover your losses, unless you were seriously injured, in which case you will have to pay out of pocket for any and all expenses that exceed your policy limits.

You can also file an insurance claim against the at-fault driver’s insurance company when you’ve been hurt in a wreck. If you have reason to believe they will pay you a fair settlement for your damages, you may never need to consider a lawsuit.

If the negligent party’s insurance company refuses to pay you fair compensation, though, then you can file a car accident lawsuit with the court instead.

When you file a car accident lawsuit, your case will be heard in court. If the jury believes that a negligent driver injured you, you will have won your case. You will be awarded an amount of money to compensate you for your car accident losses.

Advantages and Disadvantages of Each

The advantages to filing insurance claims are that you can avoid the expense and headache of going to court, and they are typically handled faster than lawsuits. The advantage of lawsuits is that you might feel as though justice has been better served, especially if your injury accident was caused by gross negligence or wrongful behavior.

Disadvantages to insurance claims is you that you might not get as much money as you could if you took your claim to court, where you can generally receive compensation faster, and you might not feel as if you’ve received the sense of justice a court trial can give you.

Disadvantages to lawsuits include the amount of time they take, the amount of money they can cost, and the emotional toll they can have on you.

Get in Touch with an Illinois Car Accident Lawyer

If you’ve been injured in a vehicle collision, we can help you decide which option is best for you: insurance claim or injury lawsuit. At Mahoney & Mahoney, LLC, we believe in justice and fair compensation for auto wreck victims. Schedule your free claim assessment by calling 815-656-4600 or by sending in the online form located below.