Is There a Difference Between Suing and Filing a Claim in NY?

When you are injured in New York, you may be eligible to get compensation for those injuries from an insurance company or another party. You may have heard the terms “suing” or “filing a claim” as ways to pursue that compensation. While these terms are often used interchangeably, there are actually distinct differences between the two legal options. 

Filing a Claim

When you file a claim, you are typically doing so with the insurance company that is responsible for paying you compensation. Thus, if you were involved in a car accident, you would generally file a claim with your car insurance company. 

Filing a claim means that you are informing the insurance company that you were injured and that they are responsible for compensating you for that injury based on the terms of an insurance policy that you or another party is covered by. This filing starts the claims process, which can potentially leave you with compensation. 

Filing a Lawsuit

The other side of the coin is filing a lawsuit. This can happen if negotiations break down with an insurance company or if the statute of limitations is running out. For the latter situation, your attorney may file a lawsuit just to leave the option of suing the other party open, even if you are still seeking to resolve the case with a negotiated settlement. 

Once you have filed a lawsuit, you have included the court in your resolution of a personal injury claim. From that point on, you need to follow court procedures. If you ignore procedures by missing a hearing or failing to respond to a motion, the judge may dismiss your case. 

However, this doesn’t necessarily mean that the results of your case have to be determined by a judge or jury. You are still allowed to continue negotiating, even after filing a lawsuit against another party. 

Many cases are resolved through a negotiated settlement after a lawsuit has been filed. Filing a lawsuit is often used as a means of gaining leverage against the other party. 

If a settlement isn’t negotiated, though, the final decision is left to a judge or jury. That decision determines how much money, if any, the defendant owes you. The outcome is not necessarily final, though, as it can be appealed. Once all appeals have been resolved, the decision of the court is then final. 

A Claim Can Lead to a Lawsuit

Keep in mind that filing a claim doesn’t compel you to accept the results of that claim. If you don’t like the decision of the insurance company, you can sue to try to change the results. However, if you sue the responsible party and the courts determine the outcome, you can’t file a claim to get a different result. 

Personal Injury Lawyers and Insurance Claims

One of the reasons that people often equate filing a claim with lawsuits is that personal injury attorneys frequently assist with insurance claims. Even if you never intend to sue another party, it is usually better to be represented by a lawyer during the insurance claim process. 

Your attorney has an in-depth understanding of the claim process and can gather evidence and accurately calculate the value of your claim based on your injuries. This means that they can dispute the insurance company if it tries to deny or undervalue your claim. 

New York personal injury lawyers can also negotiate with insurance companies for a fair settlement. While much of the value of your claim is objective, some elements can be subjective. For example, an insurance company may claim that you would have paid a certain expense even if you hadn’t been injured, but a lawyer can show that it was a cost directly related to your injury. 

Typically, due to their experience and negotiation skills, lawyers can help you get better results than if you tried to navigate the insurance process alone. Simply hiring a lawyer can also be enough to compel an insurance company to act in good faith. 

Talk to a New York Personal Injury Lawyer Today

Are you unsure whether you should file a claim or a lawsuit? A New York personal injury lawyer from Silberstein and Miklos can help you make the right decision for your case. Our experienced team has decades of experience protecting the rights and futures of accident victims throughout the state. Call 1-877-ASK4SAM or connect with us online to schedule your consultation as soon as possible.