Making an Insurance
Claim vs. Filing Suit

When you suffer injuries in an accident, it can be overwhelming to deal with mounting medical bills, especially if your injury prevents you from working and earning an income. The process could be even more frustrating if the accident was the result of someone else’s negligence.

Eventually, you will begin exploring your options for compensation and may face a tough decision: making an insurance claim vs. filing a lawsuit. What should you do in your specific situation? What is the difference between the two approaches to seeking compensation?

Speak with an experienced attorney to review your particular circumstances and help you decide on the best course of action in your case. As an experienced personal injury attorney at The Fostel Law Firm, I represent injured victims and their families throughout Texas, and the Southeast New Mexico area. You deserve to understand your compensation options.

Difference Between an
Insurance Claim and Lawsuit

When deciding whether to file an insurance claim or a lawsuit after an accident, you need to understand the difference between the two processes.

  • Filing an insurance claim. Making an insurance claim means asking an insurance company to provide compensation for your losses and damages. Depending on the circumstances of your accident, you may need to file a claim with your own insurance company or the insurance company of the at-fault party who caused your injury.
  • Filing a lawsuit. When you intend to take your case to court, you must file a lawsuit. A lawsuit is a formal legal proceeding in a civil court. When filing a suit, you are required to prove the other party’s negligence to obtain financial recovery.

The pros of filing an insurance claim:

  1. You know what compensation you will get once the settlement is reached
  2. There is less paperwork and hassle
  3. The process is typically faster than formal legal proceedings in court
  4. Filing an insurance claim does not involve additional legal costs

The cons of filing an insurance claim:

  1. The insurance settlement may not be enough to cover your expenses and losses
  2. You have to deal with an insurance company that may be reluctant to provide fair and reasonable compensation
  3. Once you accept the settlement offer, you automatically give up your right to file a lawsuit

While many accident victims are reluctant to deal with insurance companies because they think the insurer will take advantage of their lack of legal knowledge and unfamiliarity with the insurance claims process, the truth is that your attorney will help you navigate the process and protect your rights and interests when dealing with the insurer.

In addition, the insurance industry in Texas is regulated by the Texas Department of Insurance. The Department of Insurance keeps an eye out for deceptive and unfair insurance practices and scams.

When Should You File a Lawsuit?

Before filing a lawsuit to recover damages, you need to understand the advantages and disadvantages of litigation. While the process has its pros, it also has its cons.

The pros of filing a lawsuit:

  1. The judge will serve as a neutral party to decide your case
  2. The lawsuit may result in higher compensation

The cons of filing a lawsuit:

  1. Trials can cause a great deal of stress
  2. Formal legal proceedings in court can take years to resolve
  3. Litigation can be expensive because it involves additional legal fees
  4. There is more risk because you do not know the outcome

How Legal Counsel Can Help

As a skilled and results-driven attorney at The Fostel Law Firm, I am dedicated to helping clients understand their legal options and decide their best course of action to seek the full compensation to which they are entitled. I can guide you through the process of making an insurance claim and filing a lawsuit, whichever is best for your particular case. With offices based in Houston, Texas and Georgetown, I review cases from any state for no charge. Get a free case evaluation by reaching out to my office.


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