Key Takeaways:
- Claims vs. lawsuits are different legal processes. Claims involve negotiating directly with insurance companies, while lawsuits require the filing of legal documents and following formal legal procedures in Missouri courts.
- Claims settle faster, but lawsuits can pay more. Insurance claims, especially for minor injuries, may resolve in just a couple of months. However, they are limited by policy amounts. Lawsuits can take much longer, sometimes years, but can result in higher compensation.
- Claims can lead to a lawsuit. Most accident victims begin with insurance claims, but then find they’ll have to file a lawsuit because the insurance company denies their claim or offers minimal compensation.
After a car accident in Missouri, you face a critical decision: should you accept the insurance company’s settlement offer or file a lawsuit?
Insurance adjusters are trained to minimize payouts in Missouri car accident claims and close cases quickly, often before you understand the true extent and impact of your injuries. Filing a lawsuit opens the door to higher compensation, but there are some drawbacks, such as the cost and the potentially much longer timeline.
At Bradley Law Personal Injury Lawyers, we’ve seen both paths succeed. But to get the full worth of your case, you need to know which approach fits best in your specific situation.
What Is a Claim?
When you make a claim, you ask an at-fault party or their insurance company (or in some cases, your own insurer) to pay for your losses. In Missouri car accident cases, you’d typically file a claim with the responsible driver’s insurance company.
The claim process begins when you notify the insurance company about the accident and your injuries. The insurer then investigates the incident to determine fault and assess your damages, such as medical expenses, lost wages, and pain and suffering. Claims are usually handled outside of court.
Pros of Filing a Claim
Filing an insurance claim offers you several benefits that make it the natural starting point when you’re seeking compensation. Claims can be quicker, more efficient, and cheaper than taking a case to court.
The car accident settlement process can be fast if your accident is straightforward and liability is clear. With a claim, you don’t have any court filing fees and legal expenses to pay, such as expert witness and deposition costs. And if you need an attorney, their fees may also be minimal if a settlement is reached quickly.
Another distinct advantage of resolving a claim out of court is privacy. Settlements remain confidential between you and the insurance company, while lawsuits become part of the public record and are accessible to anyone.
Cons of Filing a Claim
The insurance claim process isn’t perfect and may even leave accident victims with significant injuries undercompensated. Here are some of the disadvantages of claims vs. lawsuits:
- Superficial investigations. Insurance adjusters may rush investigations or overlook key evidence.
- No discovery process. Unlike in a lawsuit, you can’t compel the other party to produce documents or answer questions under oath.
- Policy limits cap compensation. Even with clear liability, your recovery is usually limited by the defendant’s policy’s coverage amounts.
- No punitive damages available. Insurance settlements don’t include punishment for particularly reckless behavior, such as in drunk driving collisions.
- No appeals process. Once you accept a settlement, you can’t come back and seek more, even if your injury turns out to be more serious than was originally thought.
What Is a Lawsuit?
A personal injury lawsuit arises when you take your claim to a court because the insurance company won’t pay you fairly. To start a lawsuit, you file legal paperwork (a “complaint”) with a Missouri court. The document explains how the other person caused your accident and lays out the damages you seek.
If the other party doesn’t agree with your demands and refuses a fair settlement, you’ll have to present your case in court before neutral judges and juries. They, and not insurance company employees, will then decide what compensation you deserve based on Missouri car accident laws and the specifics of your case.
Pros of Filing a Lawsuit
The biggest reason to file a lawsuit is the potential for significantly higher compensation awards. Juries may side with victims who have suffered serious injuries or disabilities, and award amounts that far exceed what insurance companies offer during settlement negotiations.
When you file a lawsuit, you also gain important legal protections that aren’t available during insurance claims. For example, Missouri’s Rules of Civil Procedure provide that during the legal discovery process, your attorney can obtain evidence that at-fault parties or insurance companies might simply withhold in insurance claim negotiations.
Filing a lawsuit also protects you from insurance company manipulative and bad faith tactics, which can derail your insurance claim. And in lawsuits involving particularly reckless or intentional conduct, you may be eligible for punitive damages that aren’t available through insurance claims.
Cons of Filing a Lawsuit
Most challenges of filing a lawsuit revolve around time, cost, and the uncertainty of the outcome. And these factors come into play even when you have a strong case. Here’s a rundown of the potential downsides of filing a lawsuit:
- Cases can take a year or more to resolve
- You may have to attend rounds of court hearings and depositions
- A lawsuit requires extensive documentation and preparation
- You’ll have to factor in court filing fees, attorney fees, and other legal expenses
- Jury verdicts are unpredictable, and you could receive less than the insurance offer
- The emotional stress of a court battle can weigh heavily
Despite the challenges, many accident victims find that lawsuits are worth pursuing when insurance settlements fall short. Working with an experienced car accident attorney in St. Louis helps you understand your options when you’re deciding between filing a claim vs. lawsuit.
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Claims vs. Lawsuits: Differences at a Glance
| Factor | Insurance Claim | Lawsuit |
|---|---|---|
| Who Decides Outcome | Insurance adjuster | Judge or jury |
| Timeline | 2 months plus | 1 year or more* |
| Upfront Costs | None | Court fees, expert costs |
| Evidence Rules | Informal negotiation | Formal discovery process |
| Privacy | Confidential settlement | Public court records |
| Appeal Options | None once settled | Available if unsatisfied |
| Compensation Limits | Policy limits | No artificial caps** |
* Timelines can vary by case complexity and court backlog
** While most personal injury lawsuits don’t have damage caps, they do exist in specific situations, such as in medical malpractice and government-involved cases.
When Does a Claim Become a Lawsuit?
Victims typically decide to move on from a claim to a personal injury lawsuit in Missouri when they can’t recover a fair settlement from an insurance company. Here are some scenarios that can turn a simple insurance claim into a legal battle:
Insurance Company Refusing or Minimizing Your Claim
Lawsuits occur when insurance companies mishandle claims. In Missouri, insurance companies are legally required to act in good faith when handling your claim. If they deny valid claims, offer settlements that are too low to cover your damages, or unreasonably delay payment, you could have a bad faith insurance claim.
Missouri has specific statutes (like RSMo § 537.058 and others) that govern settlement demands and protect you from insurance companies acting in bad faith.
Your Injuries Are Too Severe for Insurance Limits
Some accidents result in injuries so severe that insurance coverage doesn’t come close to covering victims’ expenses and losses. For example, suppose you’ve suffered a permanent disability that impacts your life so much that you need help with daily tasks, like getting dressed and preparing meals, or you can’t work anymore. In that case, you’ll likely need to pursue a lawsuit to recover adequate compensation.
Your Case Involves Complex Liability Issues
Certain accident scenarios almost automatically lead to lawsuits because they’re too complicated for a straightforward insurance settlement. These situations include the following:
- Multiple vehicle collisions with several liable parties
- Complex crashes requiring accident reconstruction experts
- Insurance companies disputing coverage
- Crashes involving commercial trucks or delivery vehicles
Missouri’s Filing Deadline for Personal Injury Lawsuits
In Missouri, the statute of limitations under RSMo § 516.120 gives you five years from the date of injury to file a personal injury lawsuit. This deadline is usually final, and filing a lawsuit too late can bar you from pursuing compensation.
Insurance adjusters know when your time runs out to file a lawsuit in Missouri. If the statute has already passed, they might offer you pennies on the dollar, knowing you can’t threaten to file a lawsuit anymore. Don’t let them run out the clock on you.
Missouri-Specific Laws That Impact Your Claim or Lawsuit
Missouri has unique laws that can impact your case, whether you file an insurance claim or a lawsuit:
- Comparative negligence. Missouri follows comparative negligence, which reduces your compensation if you have some fault for the accident that caused your injury. For example, if you’re 30% at fault, you lose 30% of your compensation.
- Low minimum insurance requirements. According to the Missouri Department of Revenue, minimum requirements are $25,000 per person/$50,000 per accident for bodily injury, which is insufficient for severe injuries.
- Missouri is an at-fault state. Unlike other states, which operate under a no-fault system, Missouri is an at-fault state. This means you can immediately file a lawsuit against at-fault drivers.
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FAQs
What if I can’t afford the upfront costs of filing a lawsuit in Missouri?
Most personal injury attorneys work on contingency, meaning you don’t pay attorney fees unless you win. If we take your case, Bradley Law fronts legal expenses, including court costs and expert witness fees, so you don’t have to worry about the costs.
Can I still file a lawsuit if I’ve already started an insurance claim?
Absolutely. Starting an insurance claim doesn’t prevent you from filing a lawsuit later if negotiations don’t result in a fair settlement. Many people try the claim route first since it’s faster and cheaper, and then file a lawsuit if the insurance company refuses to cooperate.
How do I know if my case is worth more than what insurance is offering?
If you have steep medical bills, ongoing care needs, or your injuries affect your ability to work, your case might be worth much more than the initial insurer’s offer. Insurance companies try to lowball victims to resolve cases quickly. Our personal injury attorneys can evaluate your claim and assess whether your damages justify filing a lawsuit vs. a claim.
Bradley Law: Ready to Fight for What Your Case Is Really Worth
When insurance companies minimize your recovery, you need attorneys with a proven track record, whether through insurance settlement negotiations or jury verdicts. At Bradley Law Personal Injury Lawyers, we’ve recovered millions for our clients precisely because we know when an insurance claim is in your best interests and when we have to fight in court to get maximum compensation. Here’s what sets us apart from other law firms:
- Million-Dollar Results. Our victories include record-breaking recoveries: a $14.25 million motorcycle accident settlement, a $14 million wrongful death recovery, and a $10.15 million car accident verdict.
- Insurance Company Expertise. Our founder, E. Ryan Bradley, formerly defended insurance companies and now uses that knowledge to his clients’ advantage. We know how to hold insurers accountable who try to cheat victims out of fair compensation.
- Trial-Ready Strategy. We prepare every case as if it will go to trial, which compels insurance companies to offer fair settlements during claim negotiations.
Whether your case requires aggressive insurance claim negotiations or full courtroom litigation, Bradley Law Personal Injury Lawyers has your back. We work on contingency, meaning you pay nothing unless we win. Get started now and contact us to schedule your free consultation.
