Introduction

Following an accident, life can feel like a whirlwind of stress, unfamiliar faces, and specialized terms. Amongst the multitude of legal jargon that you may be introduced to during the months following your personal injury, “Claim” and “Lawsuit” are two concepts of central importance. While related to one another, these two terms represent distinctly different legal processes, so it is important not to confuse the two.

Auto Insurance in No-Fault States

Michigan is one of few states that has no-fault auto insurance legislation. In fact, only 12 states feature such legislation for auto insurance: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.

Michigan law requires drivers to be insured with Personal Injury Protection coverage. This means that in the event of an auto accident, the at-fault driver is not responsible for covering medical costs and related expenses; your insurance company is. Given the no-fault nature of auto insurance laws in Michigan, many individuals engage in claims with their insurance company following an accident. Through an insurance claim, it is sometimes possible to recover fair compensation for your injuries.

Although not always effective in recovering the maximum amount of compensation for individuals, a claim can be preferred to a lawsuit because it is quicker, less expensive, and does not require an attorney or court appearance (although it may be advisable to have an attorney assist with negotiations). It is important to keep in mind, however, that insurance companies have very little incentive to fully compensate you, as it ultimately hurts their bottom line. Typically, a claim is a sufficient resolution for less severe and more obvious claims in which no lives were altered, and no major hardships were endured as a result of the accident.

Action Beyond Claims

Not all auto accidents are fender benders and unfortunate minor bumps. Sometimes, cases of extreme negligence and high speeds lead to horrific accidents that change individuals’ lives forever. More severe accidents that result in suffering and hardship often warrant filing a lawsuit. A lawsuit refers to a series of legal actions taken in court in which the plaintiff party sues the defendant party for harm or losses that they caused. In the world of auto accident lawsuits, the defendant party is usually represented by the insurance of the at-fault driver.

Lawsuits are a much more lengthy and formal process than a claim and most definitely require the legal expertise of an attorney. A major benefit of filing a lawsuit is that the decision on how much you get compensated is taken out of the hands of the insurance company and is entrusted to a neutral jury. However, not all lawsuits make it to the point where they are brought to court and litigated – many are resolved before this point during negotiations between the defendant and plaintiff’s legal representation.

Although more costly than an insurance claim, lawsuits are the best way to ensure the maximum amount of compensation is secured following an accident. If you were in a serious, life-altering accident and feel that you were the victim of someone else’s negligence, do not hesitate to reach out to the team at Femminineo Law. David Femminineo and his colleagues will work tirelessly on your case, guiding you through each step of the claims or lawsuit process. While David and his team are not able to turn back the clock and stop your accident from happening, they hold themselves to the highest standards possible and are truly dedicated to securing your financial compensation. Call David today at 855-65CRASH or visit his website at https://getdavidgetpaid.com/.