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Making an Insurance Claim vs. Filing a Lawsuit

The Stutzman Law Firm, PLLC Jan. 24, 2023

Insurance claim formGoing through the personal injury claims process can be complicated and even overwhelming. That is why it is important to understand your options to seek the compensation you deserve. 

If you live in Flowood or in surrounding areas in Mississippi—including Brandon, Clinton, Pearl, Richland, and Rankin County—reach out to an attorney at The Stutzman Law Firm, PLLC. The firm is ready to help you make intelligent decisions and find a path forward after your injury. 

What Is the Difference Between an Insurance Claim and a Lawsuit in Mississippi? 

The difference between an insurance claim and a lawsuit boils down to the following: 

  • An insurance claim is an agreement between the policy and insurer according to the policy’s terms and conditions. The policyholder submits a request so the insurer can pay out based on the policy’s limits. 

  • A lawsuit involves the court when an agreement cannot be reached between the policyholder and the insurance company. The court decides on fair compensation based on both sides’ arguments. 

A lawsuit may be necessary when insurers make lowball offers or deny coverage altogether. Nevertheless, a lawsuit can be a lengthy and potentially expensive process. 

What are the Pros and Cons of Filing an Insurance Claim?  

Here are the pros of filing an insurance claim: 

  • An insurance claim allows policyholders to have a clear estimate of how much they will be awarded. This key element helps policyholders determine if the amount will sufficiently cover their needs. 

  • Filing an insurance claim requires less effort and is less time-consuming. As a result, policyholders may receive compensation relatively soon. 

Here are the cons of filing an insurance claim: 

  • The policy payout may be insufficient to cover related expenses (i.e., property repairs, personal injury, or replacement costs). 

  • Unfortunately, policyholders depend on whatever the insurer determines to be fair compensation. This situation may include coverage denial if the insurer deems so. 

Enlisting the help of an experienced personal injury attorney can help policyholders determine if an insurer’s offer is fair. Above all, a skilled attorney can help policyholders navigate the often-complex insurance process.  

What are the Pros and Cons of Filing a Lawsuit? 

When an agreement cannot be reached, there may be the need to file a lawsuit. Here are the pros of filing a lawsuit: 

  • The court is an objective third party in the process. As a result, the judge will award fair compensation based on their experience and legal knowledge. 

  • The court’s decision may result in potentially higher compensation than an insurer’s offer. This occurs especially when insurers attempt to lowball policyholders.  

Here are the cons of filing a lawsuit: 

  • Lawsuits can be expensive. They require an attorney’s legal fees, court costs, and other expenses such as medical exams or procuring evidence. 

  • Filing a lawsuit can also be a lengthy process. Insurance companies tend to use every legal means to draw out the process so that claimants give up. 

  • The actual compensation amount is unknown. There is no certainty about how much the court will award until a final decision has been made. 

Securing a favorable outcome in a lawsuit requires the assistance of a lawyer who will stand by your side every step of the way.  

How Can Legal Counsel Help Claimants in Mississippi? 

Finding the right personal injury attorney can make a significant difference in your case. Experienced attorneys know what is fair and what is not. They can help claimants assess offers and determine if they should accept one or pursue additional legal means. Additionally, a professional attorney can help claimants negotiate with insurers. Insurance companies use every trick in the book to take advantage of accident victims, which is why it’s vital to contact an attorney who knows how to deflect insurers’ tactics.  

Getting the Right Legal Counsel 

No matter where you live in Mississippi, set up a one-on-one consultation with a lawyer to start pursuing the compensation and the peace of mind you deserve. The attorney at The Stutzman Law Firm, PLLC is ready to go the extra mile to uphold your legal rights. Reach out today.