Personal injury claims typically start when you are injured in an accident that was someone else’s fault. Your claim may evolve into a lawsuit if the insurance company is not offering a fair settlement amount. Here is the difference between an insurance claim and a lawsuit, and how to protect your rights to maximize your compensation.
What Is a Personal Injury Claim
A personal injury claim is the first step in seeking compensation after an accident. It is a notification to the insurance company for the at-fault person that you are claiming their policy. Most personal injury claims are settled without the need for a lawsuit.
The purpose of filing a claim with the insurance company is to seek compensation for damages such as medical bills, lost wages, property damage, and pain and suffering. A personal injury attorney puts together the evidence and documentation of damages to show liability and the amount of your damages.
Typically, the insurance adjuster will assess the facts and make a settlement offer. Then negotiations involve several different offers before arriving at an agreed-upon amount. The odds of settling a case for full compensation go up substantially with an experienced attorney on your side.
When a Personal Injury Claim Becomes a Lawsuit in Texas
If negotiations stall or the insurance company disputes liability, the next step would be to file a lawsuit. Filing a lawsuit lets a judge or a jury decide who wins the case.
A lawsuit starts when a lawyer files a petition in civil court. The petition outlines the defendant’s negligence and the injuries and damages being sought. The defendant is served with the lawsuit and must respond promptly under Texas law, typically within 20 to 30 days.
While a claim relies upon negotiation, a lawsuit involves the discovery process to obtain evidence from the other side. Warriors use depositions, subpoenas, and even expert witnesses to prove their case. Many cases settle after a lawsuit is filed but before the case goes to court. If the case is tried to a judge or jury, the verdict determines the damages to be awarded.
Key Differences Between a Claim and a Lawsuit
| Aspect | Personal Injury Claim | Personal Injury Lawsuit |
| Purpose | Negotiate a settlement with the insurance | Obtain a judgment in court |
| Process | Informal, handled outside court | Formal legal proceeding |
| Decision Maker | Insurance adjuster | Judge or jury |
| Timeline | Weeks to months | Months to years |
| Cost | Fewer expenses, faster resolution | Higher litigation costs |
| Evidence | Shared voluntarily | Obtained through discovery |
| Control | Negotiated outcome | Decided by the court |
Filing Deadlines Under Texas Law
Under the Texas Civil Practice and Remedies Code §16.003, the statute of limitations for most personal injury claims is two years from the date of the accident. This deadline applies whether you are filing an insurance claim or pursuing a lawsuit. Failing to act within this period usually bars your right to compensation.
While insurance claims should be filed promptly, lawsuits must be filed before the statute of limitations expires, even if negotiations are ongoing.
Why Insurance Companies Push for Quick Settlements
Insurance companies are highly sophisticated in handling claims. The company’s goal is to pay out as little as possible on each claim. In certain circumstances, adjusters may seek to settle the case quickly before you know the extent of your injuries or how much medical care you will need.
If you accept an offer too early, you can be stuck with ongoing medical bills and lost income. We recommend that you always feel very comfortable with where you are, treatment-wise, before considering any settlement.
We also recommend that you either hire an attorney or take advantage of a free consultation before agreeing to any settlement.
Why Adjusters Delay Your Claim
Another tactic common in insurance claims, particularly those involving personal injury, is delay. Either the adjuster is not reachable, unresponsive, or is continually asking for more information to evaluate your case.
This tactic is designed to create a situation where the victim is frustrated with the process and is willing to settle for less than their case is worth.
The Personal Injury Lawsuit Process
When a claim escalates to a lawsuit, several key stages follow:
- Filing and Service – Your attorney files the petition in court and serves the defendant.
- Discovery – Both sides exchange documents, conduct depositions, and gather evidence.
- Motions and Hearings – The court may rule on legal issues before trial.
- Mediation or Settlement Talks – Many cases still resolve before trial.
- Trial – If no agreement is reached, the case proceeds before a judge or jury.
- Judgment or Appeal – The final verdict determines the damages. Either party may appeal.
An old saying is that the best way to get the most compensation is to be ready for trial. A strong case can easily encourage insurance companies to settle rather than take the case to trial.
Damages Recoverable in a Claim or Lawsuit
Whether through settlement or verdict, an injured victim may recover compensation for:
- Medical expenses (past and future)
- Lost wages and diminished earning capacity
- Pain and suffering
- Property damage
- Mental anguish
- Permanent disability or disfigurement
- Wrongful death damages (for families of deceased victims)
Proper documentation of damages and often expert testimony is essential to achieving full compensation.
When to File a Lawsuit Instead of Settling
Filing a lawsuit becomes necessary when:
- The insurer denies liability or delays payment
- The settlement offer is far below the claim’s value
- There are disputed facts about fault or damages
- The at-fault driver’s policy limits are insufficient, and you have Underinsured coverage.
- The case involves catastrophic injuries or wrongful death
It is not uncommon for Harris County courts to order the parties to mediation at some point before a jury trial. Many cases are settled in mediation before trial.
How an Experienced Texas Personal Injury Lawyer Helps
Hiring an experienced personal injury attorney. Early in the process is best for your case. An attorney can investigate the accident, preserve evidence, and handle all negotiations with the insurance company. If a lawsuit is necessary, your attorney will file your lawsuit and prepare your case.
At Baumgartner Law Firm, we have spent over 40 years representing accident victims across Houston and Texas, achieving verdicts and settlements totaling millions. We handle all cases on a no-win, no-fee basis, meaning you pay nothing unless we recover compensation for you.
Protect Your Rights After an Accident
If you or a loved one has been injured in an accident in Texas, time is critical. Begin with a complimentary consultation to discuss your case, explore your options, and determine whether to pursue a claim or lawsuit. Our Houston personal injury attorneys are ready to protect your rights and fight for the compensation you deserve.
Contact Baumgartner Law Firm today at (281) 587-1111 for a free case evaluation.
Baumgartner Law Firm
6711 Cypress Creek Pkwy, Houston, TX, 77069
(281) 587-1111
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