Car Accident Claim vs. Personal Injury Lawsuit: What’s the Difference?

Mission Personal Injury Lawyers | August 9, 2025 | Car Accidents

Car Accident Claim vs. Personal Injury Lawsuit: What's the Difference?

If you’ve been injured in a car accident in California, you may be wondering whether to pursue a car accident claim or a personal injury lawsuit. While both options aim to get you compensation for your injuries, the processes are completely different. 

Understanding the differences between these two options can help you make an informed decision about how to seek compensation for your injuries. 

What Is a Car Accident Claim? 

A car accident claim is the process through which an injured party seeks compensation for their injuries and damages from an insurance company. Usually, these claims are filed with the at-fault party’s insurance provider. 

A claim is the first step after an accident, and many cases are resolved through this process without ever needing to go to court. 

Features of a Car Accident Claim

Some of the key features of a car accident claim include: 

  • Informal process: A car accident claim is typically a less formal process than a lawsuit. After the accident, you or your attorney will file a claim with the at-fault driver’s insurance company (or your own insurer if you have uninsured or underinsured motorist coverage). This allows for the possibility of settlement without legal action. 
  • Negotiation with insurance adjusters: Once the claim is filed, the insurance adjuster will investigate the circumstances of the accident. They may review accident reports, medical records, and other documentation to determine the extent of damages. Insurance companies often try to offer a settlement as quickly as possible, though it may be far less than you deserve. 
  • Settlement negotiations: The injured party can often negotiate directly with the insurance company to reach a settlement. This is often a faster process than filing a lawsuit. However, settlements may not always cover all your medical costs, lost wages, or pain and suffering. 

Car accident claims are typically quicker and less expensive than lawsuits, making them an attractive option for many people. However, depending on the case’s specifics and how the insurance company responds, negotiating a fair settlement may still take time. 

What Is a Personal Injury Lawsuit?

A personal injury lawsuit is a formal legal action taken in court when a car accident claim cannot be resolved satisfactorily or if the insurance company has acted in bad faith. Personal injury lawsuits are typically pursued when the insurer refuses to settle, disputes liability, or offers a settlement significantly lower than what the injured party believes they are entitled to. 

Features of a Personal Injury Lawsuit

Some of the key aspects of a personal injury lawsuit include: 

  • Formal legal process:  A personal injury lawsuit is a formal legal proceeding filed in court. It begins when your attorney files a complaint against the defendant. You will then enter into the discovery phase, where both parties exchange evidence, documents, and witness testimony to build their case. 
  • Discovery phase: During discovery, both parties have the opportunity to gather information about the accident and the injuries. This could include interviewing witnesses, obtaining medical records, reviewing expert opinions, and taking depositions. The purpose of discovery is to allow both sides to assess the strength of their case. 
  • Trial and jury decisions: If a settlement is not reached during the pre-trial phase, the case will go to trial. In a trial, a judge or jury will hear both sides and make a final decision on liability and damages. This is often a lengthy process and can take months (or even years) to reach a resolution. 

Personal injury lawsuits allow for the possibility of higher compensation, especially if the case goes to trial and the defendant is found liable. In some cases, a lawsuit may result in punitive damages, which are a punishment in addition to economic and non-economic damages. 

Time Limits for Claims and Lawsuits

In California, personal injury claims—including those arising from car accidents—are subject to strict time limits. Generally, you have two years from the date of the accident to file a lawsuit in court. Insurance claims should also be filed as soon as possible, as delays can weaken your case and may affect your ability to recover compensation. 

Missing the statute of limitations or waiting too long to take action could result in losing your right to seek damages altogether. Acting promptly helps protect your legal options.

How a Personal Injury Lawyer Can Help

An experienced personal injury lawyer can help you navigate the complexities of car accident claims and lawsuits. They can guide you through each stage of the process, protect your rights, and work to secure the full compensation you’re entitled to receive.

If you’ve been injured in a car accident, contact Mission Personal Injury Lawyers today to schedule a free consultation. Let us help you understand your legal options and fight for the justice you deserve.

Contact the Car Accident Law Firm of Mission Personal Injury Lawyers Today To Get More Information

If you’ve been injured in San Diego or Chula Vista, please call Mission Personal Injury Lawyers for a free case evaluation with a personal injury lawyer or contact us online.

We proudly serve San Diego County and throughout California.

Mission Personal Injury Lawyers – San Diego Office
2515 Camino del Rio S Suite 350, San Diego, CA 92108
(619) 777-5555

Mission Personal Injury Lawyers – Chula Vista Office
690 Otay Lakes Rd #130, Chula Vista, CA 91910
(619) 722-3032

We also serve the state of Texas. For legal assistance, contact our personal injury law office in El Paso today.

Mission Personal Injury Lawyers – El Paso Office
201 E Main Suite 106, El Paso, Texas 79901
(915) 591-1000