What’s the difference between filing a claim and a lawsuit?

If a negligent driver caused you to suffer injuries in a car accident, you could be entitled to compensation from them. You have two options for obtaining the damages you deserve: filing a claim and filing a lawsuit. While the terms are sometimes used interchangeably, they are very different processes, and it is important for you to understand how they differ.

What Is an Auto Collision Claim?

The first step you will take to seek compensation from the at-fault motorist would be to file a claim with their insurance company. While you can file your claim on your own, it is best to retain an experienced car accident lawyer to file it for you. This process is an attempt to reach an out-of-court settlement of your claim.

Your lawyer would send the insurance company a demand letter advising them of your claim, how the other driver’s negligence caused the crash, the seriousness of your injuries, and the amount of compensation you should receive. An insurance adjuster would be assigned to investigate your claim and determine how to respond to your attorney’s demand for compensation.

Unfortunately, even if you have a strong case, the insurance company will most likely try to deny your claim or offer you less money than you are entitled to in order to save money. Your attorney may need to collect additional evidence or hire expert witnesses to refute the insurance adjuster’s arguments. Your lawyer may go through a series of offers and counteroffers with the insurance company before negotiating your settlement.

What Is an Auto Accident Lawsuit?

If the insurance company refuses to be reasonable or the statute of limitations, which is the deadline you have to file your complaint, will expire soon, your attorney would file a lawsuit in court on your behalf. Here are the steps involved in litigating your case:

• Complaint. Your lawyer would file a civil complaint in court. Your complaint would contain the same basic information as in the demand letter and ask the court to award you the damages you deserve under New Mexico law.
• Answer. The negligent driver would be served with your complaint and would file an answer to it admitting or denying the allegations. They would most likely deny everything and raise defenses as to why they are not liable to pay you.
• Discovery. The longest stage in your case will be the discovery phase. The attorneys for the insurance company and you would obtain information from each other and third parties to support their case and defeat the other side’s arguments. Written questions, referred to as interrogatories, requests for production of documents, and depositions are the common types of discovery used in car accident cases.
• Negotiations. When your lawyer believes it would be productive, they will engage in negotiations with the attorney for the insurance company. It is likely that you will reach a settlement of your case at some point in the litigation process.
• Trial. If your case is not settled, it would be decided at a jury trial where you would have the opportunity to present your evidence and testify about how the accident occurred, the seriousness of your injuries, and the amount of compensation you should receive. After both sides present their arguments, the jury would decide how much damages, if any, to award you.

If you or a family member were hurt in an auto collision in Roswell, our dedicated car accident lawyers are here to explain your options and go up against the insurance company so that you receive your fair settlement. To find out more about how we can assist you and our track record of success in these cases, start a live chat or fill out our convenient online form to schedule your free case evaluation today.