Posted in Personal Injury on September 4, 2025
Insurance claims and personal injury lawsuits in Long Beach, CA, both provide the means to recover your losses through compensation. While they may sound similar and are both adversarial, there is a distinct difference between the two. The level of formality, cost, timeline, processes, and venue are just a few of the ways these types of legal actions vary from one another.
Insurance Claims After Sustaining an Injury in California
Insurance claims are often the first course of action after an accident. A claim allows you to seek compensation through the at-fault party’s insurance company. This process provides an attempt for each party to reach a settlement agreement without court involvement. Accident victims typically initiate the process by claiming they suffered harm at the hands of another party.
Insurance claims are handled by an insurance adjuster who reviews the evidence and information submitted. This often includes copies of police reports, witness statements, medical records and expenses, vehicle repair estimates, and the value of lost income. Adjusters will process your claim, review the demand package provided by your lawyer, and assess the at-fault party’s policy limits
Insurance companies may not always act fairly, so it is important to hire a lawyer who can review any offer you receive before accepting a settlement from the insurance company. They can handle negotiations so you do not accept less than what your case is worth. Once a settlement agreement is reached, both parties must sign to acknowledge the sum that is to be paid and release further liability.
Claims are resolved much faster than lawsuits because the process is much more direct, less formal, and does not involve court oversight. The length of time needed to negotiate a settlement may take up the most time, which could range from a few months to more than a year. Insurance claims are often less costly because they do not take as long to resolve and do not involve court fees.
Personal Injury Lawsuits in California
Lawsuits are formal, time-consuming, and are typically necessary when recovery via an insurance claim is unsuccessful. At this point, a third party is needed to reach a decision and resolve the matter. Unlike claims, lawsuits are filed with the court system in the appropriate jurisdiction and provide a greater opportunity for negotiation and recovery.
After the lawsuit is opened, it is followed by the discovery phase. This important stage allows both parties to share evidence and information so both sides are informed and prepared for trial. Through discovery, the strengths and weaknesses of each side’s case will be evident and allow attorneys to customize their arguments. Depositions are also commonly used during this phase to secure formal statements. Eventually, both sides will present their arguments before a judge.
Lawsuits may not always be settled in a court setting. They can also be settled through mediation or arbitration instead. Engaging in alternative dispute resolution can save time and expense of going to trial while still affording you more legal options than an insurance claim.
A decision will be rendered at the end of a lawsuit to fully resolve the Long Beach accident case. At this point, all applicable damages will be distributed among the appropriate parties. Legal costs are typically higher in lawsuits, but recoverable compensation may be greater since it is not limited by insurance policy limits.