What Is The Difference Between A Personal Injury Claim And A Personal Injury Lawsuit?

When you’re hurt in an accident, the first legal language you’ll hear is “file a claim” or “file a lawsuit.” Those words are related, but they are not the same thing — and knowing the difference changes how you interact with insurers, preserve evidence, and protect your right to compensation. In this blog, we explain in clear terms what a personal injury claim is, what a personal injury lawsuit is, how and when claims become lawsuits, the practical pros and cons of each route, important statistics about how most cases resolve, and what you should do right after an injury to protect your recovery.

What is a Personal Injury Claim?

A personal injury claim is an assertion of legal responsibility made to an insurance company (or sometimes directly to the at-fault party) asking for money to cover medical bills, lost wages, and other losses caused by an accident or wrongdoing. Claims are typically the first step after an accident and are negotiated outside court.

Key features of a claim:

It is usually informal and done by contacting an insurer, submitting a claim form, and providing medical records, photos, and bills.
It is often handled through a claims adjuster who evaluates liability and damages.
The goal is a settlement, an out-of-court agreement resolving the matter without filing a lawsuit.
A claim can be resolved quickly, sometimes within weeks or months, or it can drag on if liability or damages are disputed.

Most people who are injured start with a claim because it is faster and cheaper than litigation. However, an insurer’s early offer is often lower than the full value of a claim, which is why many claimants consult an experienced Illinois personal injury attorney early to evaluate offers and negotiate.

What is a Personal Injury Lawsuit?

A personal injury lawsuit (also called a civil lawsuit or complaint) is a formal legal action filed in court asking a judge or jury to award money for injuries and losses after the defendant fails to settle a claim for a fair amount. A lawsuit moves the dispute into the judicial system and starts a formal process governed by court rules.

Key features of a lawsuit:

It starts when the plaintiff files a complaint and serves it on the defendant.
It triggers a pretrial process: written discovery (requests for documents and answers), depositions (sworn witness testimony taken outside court), and motions.
Lawsuits are public court records and follow strict procedural timelines and rules of evidence.
A lawsuit can end in settlement at any time, or proceed to trial where a judge or jury decides the case.

Filing a lawsuit is costly and time-consuming compared to a claim, but it is sometimes necessary to preserve rights, force the disclosure of crucial evidence, or obtain full compensation when the insurer refuses a fair deal. Courts also provide remedies (like punitive damages in some cases) that insurers may be unwilling to pay absent litigation.

How a Claim Becomes a Lawsuit

A typical path from accident to lawsuit looks like this:

Accident happens → seek medical care and document injuries.
File a claim with the at-fault party’s insurer → submit medical records, bills, and loss documentation.
Negotiation between claimant (or claimant’s lawyer) and the insurer → offer(s) and counteroffer(s).
If negotiation fails → file a lawsuit before the statute of limitations expires.
Pretrial litigation → continued negotiations, discovery, possible mediation or settlement.
Trial (rare) or settlement.

Reasons claimants sue include:

The insurer denies the claim or offers an unreasonably low amount.
Liability is disputed and essential evidence (surveillance video, internal records) won’t be produced without a subpoena.
There are multiple responsible parties and complex liability issues.
The claim involves a governmental defendant (different notice rules and procedures make early litigation more likely).

Filing a lawsuit is not “going to trial” automatically, it is a procedural step that protects legal rights and often increases the leverage needed to obtain a fair resolution.

Costs, Timing, and What Statistically Happens to Most Personal Injury Cases

Understanding what typically happens to personal injury matters helps set expectations:

Most claims resolve without trial. Research and court statistics show that the vast majority of civil cases settle or are otherwise resolved before trial. Historic Civil Justice Survey data and federal statistics indicate trial rates for tort/personal injury matters are a single-digit percentage. In other words, only a small portion of personal injury matters actually reach the courtroom.
How many claims are filed each year? Industry summaries and case-tracking reports estimate that hundreds of thousands of personal injury matters are initiated annually in the U.S. Some recent industry compilations place total personal injury filings in the range of roughly 400,000 per year (federal and state filings combined vary by year, especially when mass torts spike). These volumes reflect everything from small automobile-accident claims to complex medical-malpractice and product-liability suits.
Average settlement amounts vary widely. Large surveys of claimants show a broad range of outcomes, but one commonly cited figure (Martindale-Nolo research) reports an average settlement in the tens of thousands of dollars (often quoted around $50K–$55K), with many cases far below and some far above that amount. The median and distribution matter more than the mean; many smaller claims settle for a few thousand dollars while catastrophic cases can produce multi-hundred-thousand or million-dollar recoveries.

Why these statistics matter to you: because a lawsuit is a tool to obtain fair value, not the default outcome. Most claims are resolved by negotiation, but that negotiation is often more successful for claimants who understand the legal process and who preserve evidence early.

Practical Pros and Cons: Claim vs. Lawsuit

When you’re deciding whether to accept a claim offer or move forward with litigation, consider these tradeoffs:

Advantages of resolving a claim (settlement negotiation):

Faster and less expensive than litigation.
Confidential (settlements are usually private).
Greater control over timing and terms (structured payments, non-monetary terms).
Lower stress and fewer courtroom appearances.

Disadvantages of settling early:

Early offers are often low, as insurers test willingness to accept quick resolutions.
You may unknowingly settle for less than your full future medical or disability needs.
Once settled, you typically give up the right to additional recovery.

Advantages of filing a lawsuit:

Protects legal rights (preserves claims before statutes run).
Unlocks formal discovery tools to obtain evidence (documents, video, internal files).
Puts real pressure on insurers to negotiate seriously.
May be necessary to hold certain defendants accountable (government entities, insolvent insurers, bad-faith conduct).

Disadvantages of litigation:

More expensive and time-consuming.
Public record and potential appeals.
Trial outcomes are uncertain; a jury can award less than expected (or nothing).

Deciding which path is right depends on the strength of liability, the seriousness of injuries, the insurance limits available, and your tolerance for time and risk.

Steps To Protect Your Case Whether You’re Pursuing a Claim or a Lawsuit

Seek prompt medical care and keep detailed treatment records.
Preserve evidence: photos, damaged property, clothing, witness names and contact info, and any video or surveillance.
Report the incident to police or property managers when required and obtain a copy of any official report.
Do not give recorded statements to insurers without legal advice if your injuries are significant.
Track all expenses and lost time from work: these are recoverable damages.
Consult an Illinois personal injury attorney early: an attorney can evaluate your claim value, deal with insurers, preserve notice-sensitive claims, and file suit when needed.

Early steps are often the difference between a quick, fair settlement and a protracted fight that yields less than you deserve.

Common Misconceptions About Personal Injury Claims and Lawsuits

“If I file a lawsuit I’ll definitely go to trial.” False. Filing suit often leads to better settlement offers; trial is rare.
“Settling quickly is always best.” Not necessarily. Fast offers can undervalue long-term care or lost-earnings needs.
“All settlements are small.” Settlement amounts vary dramatically based on injury severity, liability, and available insurance. Large recoveries are possible when injuries are catastrophic or liability is clear.

Frequently Asked Questions About Personal Injury Claims vs. Personal Injury Lawsuits

Q: What is the main difference between a personal injury claim and a lawsuit?

A: A personal injury claim is an informal process where you seek compensation from the at-fault party’s insurance company. A personal injury lawsuit is a formal case filed in court when an insurer refuses to offer a fair settlement. Claims involve negotiation; lawsuits involve judges, discovery, and potentially a trial.

Q: Do I have to file a lawsuit to get compensation?

A: Not usually. Most personal injury cases resolve through insurance claims and settlements long before reaching a courtroom. Lawsuits are filed only when the insurer denies liability, undervalues the claim, or delays payment.

Q: When should I consider filing a lawsuit?

A: You may need to file a lawsuit if:

The insurer makes an unreasonably low offer.
Liability is disputed.
Evidence must be obtained through discovery subpoenas.
The statute of limitations is approaching.
Your injuries are severe or long-term and the insurer refuses to pay full value.

Q: Will my case go to trial if I file a lawsuit?

A: Probably not. Filing a lawsuit does not mean your case will go to trial. Most cases still settle during the litigation process after both sides see the evidence and damages more clearly.

Q: How long does a personal injury claim take?

A: Simple claims may resolve in a few months. Complex cases, especially those involving severe injuries, multiple parties, or disputed liability, can take longer. A lawsuit may add many months or years depending on court schedules and the discovery process.

Q: Is a lawsuit more expensive than a claim?

A: Yes. Lawsuits involve filing fees, depositions, expert witnesses, and other litigation costs. However, most personal injury firms (including ours) advance these costs for clients and are only reimbursed if the case is successful.

Q: Can I negotiate with the insurance company myself?

A: You can, but be cautious. Insurance companies often make low initial offers to unrepresented claimants. An attorney helps evaluate the full value of your case, identify future medical needs, negotiate fairly, and file suit if the insurer will not settle.

Q: What happens if the statute of limitations expires?

A: If you do not file your lawsuit before the statute of limitations deadline, you lose your right to pursue compensation permanently, even if your claim is strong. This is one reason attorneys often file suit to preserve a client’s rights.

Q: Does filing a lawsuit make the case public?

A: Yes. Court filings are public records. Settlements reached before or after a lawsuit may include confidentiality terms, depending on the parties’ agreement.

Q: Can a claim still settle after a lawsuit is filed?

A: Absolutely. In fact, most lawsuits do settle before trial. Filing suit simply allows your attorney to use discovery tools, expert analysis, and court deadlines to force the insurer to negotiate more seriously.

Contact the 5-Star Rated Illinois Personal Injury Attorneys at John J. Malm & Associates

If you were injured because of someone else’s negligence, don’t make rushed decisions that could cost you later. Contact John J. Malm & Associates for a free consultation. We’ll review your medical records, evaluate damages, preserve evidence, and explain whether a claim or a lawsuit (or both) is the right path to maximize your recovery. Let us handle the legal fight so you can focus on healing. Call our office today: the sooner we act, the stronger your case will be.