After a car crash, victims may wonder whether they need to file an insurance claim or an injury lawsuit. While many people use these terms interchangeably, there are critical differences between these two legal processes.
Below, our legal team discusses insurance claims and lawsuits after a car crash, including the key elements and potential outcomes of each process. We also explain why we recommend calling an experienced injury lawyer before calling your insurance company and how that helps to protect your claim.
At Andy Citrin Injury Attorneys, we have extensive experience helping injured victims, and a history of proven results. Our knowledgeable car accident lawyers in Mobile are prepared to fight for the full and fair compensation you deserve.
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Are Insurance Claims and Injury Lawsuits the Same Thing?
No, insurance claims and injury lawsuits are two separate ways to seek compensation after a Mobile crash. An insurance claim is a direct request to an insurance company for payment after sustaining damages in a crash. These claims are handled by insurance adjusters and usually settle faster than a lawsuit, but often for less money.
A personal injury lawsuit, on the other hand, is a legal action filed in Alabama courts. For higher value claims, especially, this legal process may help you to fully recover your damages.
Do I Seek Compensation Through an Injury Claim or an Injury Lawsuit?
Both legal processes have some advantages and disadvantages. Once your injuries have been stabilized, however, the first step after a car accident in Alabama is typically to file a claim through the liable insurance company.
Why You Should Call an Injury Lawyer Before Calling the Insurance Company
Contacting a lawyer before you call the insurance company helps to protect your legal rights and the value of your claim.
Insurance adjusters often try to minimize payouts by telling injured victims they need to provide a recorded statement. They may also try to tempt injured victims with a quick, but low settlement offer, long before the full extent of their injuries or damages are fully known.
While you will still need to notify the insurance company, getting legal advice first can help you avoid costly mistakes that could potentially harm the amount of compensation you are able to recover.
Filing an Insurance Claim in Alabama
A claim is the formal request you make to an insurance company for payment of the damages you sustained as the result of a car crash. Since Alabama is an “at-fault” state, you would typically file against the insurance policy of the liable driver to request compensation under the policy terms. This process is the first route injured victims take to attempt to recover the cost of their losses, such as medical bills and vehicle damage.
Some benefits and possible outcomes:
- Shorter legal process: A claim often takes weeks to months rather than years
- The claim is handled directly through insurance adjusters
- Awarded compensation is limited to policy coverage limits
- No court involvement required
There are some potential disadvantages to filing a claim through the insurance company. While they will likely try to settle your claim quickly, the amount they offer will likely be far lower than the full value of your claim. For this reason, you should always have an experienced injury lawyer review it before agreeing to any low settlement offer.
The insurance company may tell you your claim can be resolved without an attorney, and they would be right. What they do not tell you, however, is that having an attorney could greatly benefit the outcome of your case by protecting your best interests and legal rights.
Personal Injury Lawsuits in Alabama
A personal injury lawsuit is a legal action filed in Alabama’s civil courts seeking compensation from the at-fault driver. Often, insurance claims settle, making it unnecessary to go to court. However, for higher value cases, such as for crash victims who sustained life-altering injuries, it can be harder to get insurance companies to agree to a fair settlement. These lawsuits provide a way to fully recover compensation for your losses when insurance settlements fall short.
Benefits of seeking compensation through an injury lawsuit:
- Could recover damages beyond insurance policy limits
- Can include compensation for pain, suffering and future costs
- Often results in higher compensation amounts
Additional points to know:
- Requires formal legal procedures and court filings
- May take several months to over a year to resolve
- Requires proof of negligence and damages
- Attorney representation is strongly recommended
- Deadlines apply – victims have just two years from the crash to file a lawsuit
It is important to understand that there are no guaranteed outcomes with an injury lawsuit. You could end up with more than you would have gotten in an insurance settlement or you could get nothing.
How Does Alabama’s Contributory Negligence Law Impact an Injury Case?
Alabama follows a contributory negligence fault rule, which makes seeking compensation extremely challenging. Under the contributory negligence rule, if the injured party has any amount of fault in the accident, even one percent, they are barred from recovering any damages.
The liable insurance company can use this rule as an opportunity to try to shift blame to the injured party. Contributory negligence highlights the need for seeking legal representation, as even minor fault could bar you from all compensation.
Contact a Mobile Personal Injury Attorney for Guidance
If you were injured in a Mobile car accident, we recommend seeking legal help as soon as possible. Trying to navigate the complex legal process on your own can leave you vulnerable to mistakes that could hurt the outcome of your case.
Our legal team is highly qualified and works hard to hold at-fault parties financially accountable for their negligent actions. While most injury cases never end up in court, we are prepared to represent you if a settlement cannot be reached. We also have the advantage of a mock courtroom, the only client courtroom prep of its kind in Alabama.
Need legal help in Mobile? Trust the law offices of Andy Citrin Injury Attorneys to get you the results you need.
Experienced Lawyers. Proven Results: 251-888-8888
Andy is the owner and CEO of Citrin Law Firm, P.C. He founded the firm in 1995 with the goal of helping injured people put their lives back together. His passion for protecting injured people has only grown since he opened the doors of Andy Citrin Injury Attorneys, and he has a history of winning numerous multimillion-dollar verdicts and settlements for his clients.