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

A lawsuit and an insurance claim are two different types of actions taken after an accident. A lawsuit is a legal action taken against a person or organization that is alleged to be responsible for the accident. A plaintiff (the person bringing the lawsuit) can ask for payment from the defendant (the person or organization being sued) as compensation for their losses, such as medical bills, lost wages, or pain and suffering. The lawsuit is tried in court and decided by a judge or jury. An insurance claim is a request for payment due to an accident that is made directly to an insurance company. The insurance company will evaluate the claim to determine if it should be paid out, usually based on the coverage the injured person has on their policy. The claim does not involve a court or jury and is usually handled through negotiations between the insurance adjuster and the injured person. If the insurance claim is denied, a lawsuit may be filed against the person or organization responsible for the accident.

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

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