Many use the phrase “personal injury claim” to describe the action of recovering compensation after an accident — whether agreed upon during negotiations or awarded by a jury. But it more accurately refers to the most common means of recovery.
A personal injury claim best describes the method of proving a person or party was negligent and caused your injuries and negotiating a settlement with that party’s insurance company. For example, a personal injury claim can secure compensation from a driver’s insurance provider when you sustain injuries in a drunk-driving accident.
Most claims settle, but a modest percentage lead to a lawsuit. A lawsuit is a formal legal action filed in court when the parties cannot agree or if the other party’s insurance coverage is insufficient to cover the victim’s losses. A lawsuit is often time-consuming and risky but can result in a substantial award. The parties usually agree to a settlement in negotiations held throughout and drop the suit. However, if talks fail, the case will go to trial, where a judge or jury will hear evidence and determine whether the defendant is responsible and should pay compensation.