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

Lawsuits and insurance claims are two different ways of recovering money after an accident. A lawsuit is when an injured person (the plaintiff) goes to court to seek damages from the person or company responsible for the injury (the defendant). The plaintiff has to prove that the defendant was at fault for the accident. In contrast, when an injured person makes an insurance claim, they are simply asking that the insurance company pay for their damages. In Washington, a lawsuit can be filed if the value of the damages is more than $50,000 and the accident is considered to be the fault of someone else. If the damages are less than $50,000, an injured person may not be able to file a lawsuit due to the cost and complexity of the legal process. In contrast, an insurance claim does not require a lawsuit and the damages do not have to exceed a certain amount for a claim to be made. A lawsuit is more complicated and time-consuming than an insurance claim. It can also be expensive, particularly if the plaintiff has to hire an attorney. In lawsuits, a judge or jury will decide who is at fault and how much money will be awarded. An insurance claim, on the other hand, is usually handled entirely by the insurance company and the injured person may not have to go to court. In both cases, however, the injured person can be compensated for their medical expenses and lost wages.

Related FAQs

What is the difference between compensatory and punitive damages?
What is subrogation?
What is a statute of limitations?
How can I prove the other party's negligence in a personal injury claim?
What are the differences between a trial and an arbitration?
What is the best way to prepare for a deposition?
Can I represent myself in a personal injury case?
What are no-fault benefits?
Can I recover punitive damages in an automobile accident?
What are the steps involved in a personal injury trial?

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

Related FAQs

Related Blog Posts