What is the difference between a lawsuit and an insurance claim?

The difference between a lawsuit and an insurance claim in Arizona revolves around the party that is held liable for the accident. A lawsuit is a legal action taken against the at-fault party, in which the plaintiff (the person or party that was wronged) seeks to recover damages through the court system. An insurance claim, on the other hand, is a demand for financial compensation from an insurance company on behalf of the plaintiff. This is usually done when the at-fault driver carries insurance and the plaintiff seeks to recover damages from the insurance company instead of suing the driver. In both a lawsuit and an insurance claim, the plaintiff can recover damages for medical expenses, lost wages, pain and suffering, and other losses that were incurred as a result of the accident. However, with a lawsuit, the plaintiff can recover damages from the at-fault party or parties, while an insurance claim is limited to the amount of coverage provided by the policy. In Arizona, and in many other states, accident law holds that a person or party responsible for an accident should pay for any damages that result from the accident. Therefore, if someone has been injured as a result of another person’s negligence, they may pursue a lawsuit or an insurance claim to recover losses. Ultimately, the decision will depend on the severity of the damages, the availability of insurance coverage, and other factors.

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What is the difference between a lawsuit and an insurance claim?

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