What’s the Difference Between a Personal Injury Claim & a Personal Injury Lawsuit?

When someone is seriously injured—whether in a car crash, a workplace accident, an offshore incident, or as a result of any other act of negligence—life can change in an instant. Medical bills begin to pile up. Time off work to recover means lost wages and further financial hardships. And this is not to mention the physical and emotional toll an injury can have, both on the victim and their family.

The goal of the personal injury legal system is simple: to give injured victims a path to recovery and justice in the form of financial compensation. But what exactly this path looks like depends on the specifics of each unique case.

Many people have heard the terms “personal injury claim” and “personal injury lawsuit,” but not everyone understands the difference. In fact, these terms are often used interchangeably, but, technically, they are two very different things. In this blog, we’ll break down the key differences between a personal injury claim vs. a personal injury lawsuit and explain when and why you might need one over the other.

What Is a Personal Injury Claim?

Filing a personal injury claim is often the first step in pursuing compensation after an accident. This is an out-of-court process where the injured party (or their attorney) files a claim with the at-fault party’s insurance company. So, for example, if you were injured in a car accident with someone who was texting and rear-ended you, you could file a personal injury claim with their auto insurance provider.

Personal injury claims are typically filed after incidents such as:

• Motor vehicle accidents
• Large truck and other commercial vehicle accidents
• Workplace injuries, including oilfield and maritime accidents
• Incidents involving defective products, drugs, or medical devices
• Premises liability incidents, like slips, falls, or negligent security

Simply put, the purpose of a personal injury claim is to recover fair compensation for medical expenses, lost wages, pain and suffering, and other damages without going to court.

How the Personal Injury Claims Process Works

In most cases, the process of filing a personal injury claim involves several key steps:

• Investigation: You or your legal team gathers evidence, including accident reports, witness statements, and medical records.
• Demand Letter: A formal letter is sent to the insurance company outlining your injuries, damages, and the compensation you're seeking.
• Negotiation: The insurance company may respond with a settlement offer, leading to back-and-forth negotiations.

If negotiations are successful, the case can be resolved without ever stepping foot in a courtroom. However, if the insurance company denies liability or refuses to make a fair offer, filing a lawsuit may become necessary.

What Is a Personal Injury Lawsuit?

In contrast to a personal injury claim, a personal injury lawsuit is a formal legal action filed in civil court. It’s a more structured and time-intensive process, but it may be the only way to ensure the responsible party is held accountable and full compensation is achieved.

There are several scenarios in which it may be appropriate to file a personal injury lawsuit:

• The insurance company denies the claim
• There is no insurance company with which to file a claim
• Settlement offers are too low to cover your damages
• The statute of limitations is approaching
• The facts of the case are disputed and need to be resolved by a judge or jury

Your personal injury lawyer can help you determine if you should file a personal injury lawsuit, and when it may be a good idea to do so. If you do decide to take your case to court, knowing what the process entails can provide you with the confidence to move forward.

The personal injury lawsuit process:

• Filing the Complaint: First, your attorney files a legal complaint with the court, initiating the lawsuit.
• Discovery Phase: During discovery, both sides exchange evidence, take depositions, and build their arguments.
• Motions and Mediation: Pre-trial motions or mediation may lead to a resolution before trial.
• Trial: If no settlement is reached, the case is presented in court, where a judge or jury determines the outcome.

Unlike personal injury claims, personal injury lawsuits involve strict rules of evidence and procedure. They also tend to take longer, but they can lead to substantial verdicts, especially when handled by an experienced trial team like Arnold & Itkin.

Personal Injury Claims vs. Lawsuits: Key Differences

While both personal injury claims and personal injury lawsuits are tools for seeking justice and financial recovery, they operate in different ways. Understanding the key differences can help injured individuals make better decisions about how to move forward.

Formality

• Claim: A personal injury claim is an informal process handled outside the courtroom. It usually involves direct communication between your attorney and the insurance adjuster representing the at-fault party. Evidence is presented, negotiations are held, and a settlement may be reached without ever filing a legal document with the court.
• Lawsuit: A lawsuit is a formal legal proceeding. It begins with filing a complaint in civil court and follows structured rules of civil procedure. Once a case enters the legal system, a judge oversees it, and ultimately, a jury may be called to decide the outcome.

Timeline

• Claim: Claims often resolve faster than lawsuits. Depending on the complexity of the case, some may settle within a few months, especially if liability is clear and the insurer is cooperative.
• Lawsuit: Lawsuits take longer due to the number of steps involved, including discovery, depositions, motions, court schedules, and, potentially, a trial. Some lawsuits can take a year or more to resolve, especially when the case is complex.

Control

• Claim: With a personal injury claim, you and your attorney have more control over the outcome. You can decide whether to accept a settlement offer or continue negotiating. There's flexibility to shape the resolution.
• Lawsuit: Once a case goes to trial, the control shifts to the judge or jury. You present your case, but the outcome is in their hands. This is why it’s critical to have a trial-tested team representing you.

Cost

• Claim: Claims can be less expensive since they don’t involve court fees, expert witness costs, or lengthy litigation expenses. However, if the insurance company refuses to be reasonable, avoiding court may come at the cost of fair compensation.
• Lawsuit: Lawsuits can be more expensive due to additional legal work and court-related costs. However, the good news is that personal injury lawyers, including ours, typically work on a contingency fee basis. This means you pay nothing unless we win.

When Does a Claim Become a Lawsuit?

Most personal injury cases begin as claims, but not all claims can be resolved without going to court.

There are several common reasons a claim may need to escalate into a lawsuit:

• The Insurance Company Denies Liability: Sometimes, insurers refuse to acknowledge that their policyholder is at fault. Even in clear-cut cases, they may try to shift blame to avoid paying. When this happens, the only way forward may be to file a lawsuit and let the facts be presented in court.
• Settlement Offers Are Too Low: Insurance companies are in business to protect their bottom line, not to do what’s fair. They may offer settlements that don't even cover your medical expenses, let alone lost wages, pain and suffering, or long-term needs. If the insurer refuses to negotiate in good faith, filing a lawsuit is often the only way to demand full compensation.
• The Statute of Limitations Is Approaching: Every state has a statute of limitations, or a legal deadline for filing a lawsuit. These deadlines vary from one to several years, but once they pass, you lose your right to pursue legal action. If negotiations drag on and the deadline is near, your attorney may file a lawsuit to preserve your rights, even if discussions are still ongoing.

When Do You Need a Personal Injury Lawyer?

Whether you intend to file a personal injury claim against an insurance company or believe you may need to go to court, it’s always a good idea to hire a personal injury lawyer. This is especially true if your injuries are serious, life-altering, or involve permanent disability, lost future earnings, or ongoing medical care.

The legal process is complex, and insurance companies have teams of professionals working to limit what they pay. You deserve someone in your corner who will fight even harder for you.

Our personal injury attorneys help injured individuals and families every step of the way. We are ready to:

• Investigate the Incident: We conduct a thorough, independent investigation of your accident to gather evidence and establish liability.
• Build a Strong Claim: Our team compiles medical records, expert reports, witness statements, and all documentation needed to present a compelling case.
• Negotiate Powerfully with Insurers: Insurance companies know our reputation. They know we don’t settle for less, and that often leads to higher settlement offers.
• Take the Case to Trial When Necessary: If the other side refuses to offer what’s fair, we’re ready to fight—and win—in court. Our trial attorneys have secured record-breaking verdicts in courts across the country.

At Arnold & Itkin, we don’t just handle your case. We fight for your future.

Why Choosing the Right Legal Team Matters

Navigating a personal injury case is never easy, especially when you’re dealing with physical pain, emotional stress, and financial uncertainty. Understanding the difference between a personal injury claim and a personal injury lawsuit is a key part of taking back control. It helps you know what to expect and how to protect your rights.

But more than anything, who you choose to represent you matters. At Arnold & Itkin, we’ve recovered billions of dollars for our clients, including some of the largest verdicts and settlements in the nation’s history. We’ve stood up to the biggest corporations and insurance companies in the country—and won. When lives are shattered, we help people rebuild. When the stakes are high, we deliver.

If you or someone you love has been injured, don’t wait. Contact Arnold & Itkin today for a free, confidential consultation. We’re here to answer your questions, explain your options, and start fighting for the justice you and your family deserve.