The Difference Between Insurance and Personal Injury Claims in Car Accidents

Vehicle accident victims are often in a state of confusion after a mishap. Numerous ideas about the next step run through their minds. 

“Knowing the appropriate decision to make differentiates between worthy and unworthy compensation. Procedures play a crucial role in personal injury compensation,” says personal injury attorney John Yannone of Price Benowitz Accident Injury Lawyers, LLP.

This article differentiates between insurance claims and personal injury claims.

Background into the Two Concepts

Insurance claims differ from personal injury claims. Car accident victims seek compensation through both routes. Both processes serve peculiar purposes and have distinct laws and regulations. Knowing the process to activate each time can be a game-changer.

An insurance claim is often the go-to step after a crash. An insurance claim is a request to an insurance firm to cover the damages you suffer in an accident. 

Your contractual agreement with the insurance company is the basis of your claim. The contract outlines the conditions under which the insurer will compensate you or a third party for damages. 

Conversely, a personal injury claim is a legal process you initiate after suffering an injury due to another person’s negligence or intentionally ill deed. You file a personal injury claim in a civil court to demand compensation for a broader range of losses, including medical expenses, pain and suffering, and loss of income. 

The Basics of Insurance Claims

An insurance claim is when you formally demand payment based on the terms of your insurance policy. Before your insurance company can honor the claim, they will evaluate it to know the degree of the car damage, medical costs associated with the incident, and any other losses the policy covers. 

Medical records, police reports, and repair estimates are critical documents in this process. The documents will give the insurer an insight into what the claim entails. In other words, the content of these documents will help the insurer authenticate the truthfulness of your claim.

Insurance policies usually include coverage for personal injury protection (PIP), property damage, and underinsured or uninsured motorist coverage. One of the quickest ways to ensure your insurer honors your insurance claim is to request what your policy covers. Arguments will ensue when you make claims for things not captured in your policy. 

Understanding Personal Injury Claims

Personal injury claims are legal actions accident victims institute to demand compensation for their injuries and losses. Specifically, you demand compensation for lost earnings, pain and suffering, medical expenses, and ongoing rehabilitation expenses. 

Accident victims file personal injury claims against at-fault parties at a civil court. In other words, you do not deal with an insurance firm in this instance. Your focus is on the at-fault party.

How to Handle the Claims Process

The processes of filing insurance and personal injury claims differ. Hence, the route you decide to follow will determine the processes you will activate. 

If you want to file an insurance claim, you need to inform your insurance provider immediately after a mishap. Then, you will gather all relevant information (like photos, police reports, and medical reports) to support your claim. After that, you will complete the claim form, narrating all that transpired and the losses you suffered. 

Your insurer will evaluate the claim to determine the following line of action. They will settle you if they are pleased with the content of your claim. However, if they notice some red flags, they will investigate your claims to determine the appropriate amount to offer you. 

Many insurance providers often attempt to take advantage of their clients at this point. Once they dispute your claims, they may offer you a meager amount. That is why it is wise to work with a reputable personal injury attorney who knows the worth of your claim and interfaces with the insurance provider.

However, if you want to institute a personal injury claim, you must consult with a lawyer from the outset. Adequate legal representation is indispensable to the entire process. Your lawyer will help file a complaint in court by outlining the issue against the defendant.

Your party will exchange evidence with the defendant’s team. You may also need to carry out depositions to collate testimonies. Your attorney’s communication skills must be outstanding to bolster your chances in this instance.

How to Determine Fault and Liability

The individual responsible for the accident bears the blame or fault. However, liability entails the individual or entity legally responsible for the damages. To determine fault and liability, relevant parties must assess proof like eyewitness testimony, vehicle damage, on-scene pictures, and traffic laws. 

You may share the fault with the defendant if you live under a comparative negligence system. If the defendant accuses you of contributing to the accident, it will affect the compensation individuals can expect to get. 

Motorists, government institutions responsible for road maintenance, vehicle manufacturers, and third parties like commercial firms or contractors can be liable in an accident. 

The Place of Proof in Insurance and Personal Injury Claims

Evidence is central to obtaining adequate compensation in every claims process. If you institute an insurance claim, you must have evidence to substantiate your account of the occurrence. Witness statements and medical records are crucial pieces of evidence in this realm.

If you also file a personal injury case, you must have solid evidence to build a compelling argument. Your attorney may need to involve accident reconstructionists and ideal testimonies. The potency of your evidence determines the outcome of your case. 

Final Thoughts

Handling a personal injury case at any level is complex due to numerous state-specific laws. You need a reputable local personal injury attorney who understands your state laws and knows how to interpret them correctly for your benefit. 

An ideal attorney will protect your rights throughout the case. They will also devise potent strategies for you to present a compelling claim. During the initial consultation (which is usually free), they will advise you whether to file for an insurance claim or institute a personal injury case in court. 

They will also help you collate evidence to make your claims more acceptable. An attorney knows when to bring in an ideal for evidence to be valid and tenable. Hence, engaging a personal injury lawyer can help your case unimaginably.