After an accident, you may hear the terms “claim” and “lawsuit” used interchangeably, but they each have different meanings. A claim typically refers to an insurance claim, which is an initial request for compensation submitted to an insurer. This is often the first step in seeking payment for your injuries and losses. A lawsuit, on the other hand, is a formal legal action filed in court when a claim cannot be resolved through negotiation.
Most personal injury cases begin as insurance claims and only become lawsuits if a fair settlement can’t be reached. This article will explore the differences between claims and lawsuits, how each one works, and when one might be necessary over the other.
Which Insurance Company Should You File a Claim With in Florida?
Florida is a no-fault state, which means that after an accident, you generally file a claim with your own insurance company, regardless of who was at fault. This is done through your Personal Injury Protection (PIP) coverage, which is mandatory in Florida and covers your medical expenses and lost wages up to policy limits.
However, if your injuries are serious and meet Florida’s injury threshold, you may be able to file a claim against the at-fault party’s insurance for additional damages, including pain and suffering. Property damage claims are also typically made against the at-fault driver’s insurance under their property damage liability coverage.
When to File a Lawsuit
Insurance is designed to cover basic expenses like vehicle repairs and immediate medical bills, but these are not the only losses—known legally as “damages”—you may face after an accident. For example, you might miss weeks of work due to hospitalization or surgery. You may also need ongoing treatment, such as physical therapy or chiropractic care, long after the accident.
In addition to these economic damages, Florida law also allows you to seek non-economic damages, such as pain and suffering, emotional distress, anxiety, and the impact the accident has on your daily life. These types of losses are not typically covered in a basic insurance claim and may require filing a personal injury lawsuit to pursue full compensation.
Who Should You File a Lawsuit Against?
In Florida, if you file a lawsuit, it is generally against the at-fault party, not their insurance company. However, their insurer will usually be responsible for paying damages up to the policy limits. If the court awards damages that exceed those limits, the at-fault party may be personally responsible for the remaining amount. In this way, both a claim and a lawsuit can end up drawing from the same insurance policy, but lawsuits offer a path to pursue additional compensation when a claim alone isn’t enough.
Who Can Be Liable in a Florida Lawsuit?
In a Florida personal injury lawsuit, liability isn’t limited to the person who caused the accident. Depending on the facts of the case, other parties may also share responsibility. This can include vehicle owners, employers, manufacturers in cases of defective parts, or even government entities. Florida follows a comparative fault rule, meaning multiple parties—including the injured person—can be assigned a percentage of fault, and compensation is reduced accordingly.
What Kinds of Damages Are Available in a Florida Lawsuit?
In Florida, accident victims may be entitled to compensatory damages, which are divided into two main types: economic and non-economic. Economic damages cover measurable losses like medical bills, lost wages, property damage, and future medical expenses. Non-economic damages compensate for more subjective harms such as pain and suffering, emotional distress, loss of enjoyment of life, and inconvenience. In rare cases involving intentional misconduct or gross negligence, punitive damages may also be awarded to punish the wrongdoer and deter similar behavior in the future.
Contact a Pensacola Personal Injury Lawyer for a Free Consultation
Understanding the difference between a claim and a lawsuit is essential when navigating the aftermath of an accident in Florida. Gross & Schuster Injury Lawyers is here to help. While most cases begin with an insurance claim, not all claims result in fair compensation, especially when injuries are serious or long-term. If negotiations with insurers don’t produce a just outcome, a lawsuit may be the next necessary step to protect your rights and recover the full extent of your losses.
Whether you’re just starting the claims process or considering litigation, having the guidance of an experienced personal injury attorney can make all the difference. If you’ve been injured in an accident, don’t try to handle the legal process alone. Contact us online or call (850) 434-3333 to talk to a Pensacola personal injury lawyer today to discuss your options and find out how to pursue the compensation you deserve.