What Is the Difference Between a Claim and a Lawsuit?

Many people do not realize that there is a difference between a claim and a lawsuit. A claim is an informal process wherein your case is submitted to the insurance company for informal resolution. Sometimes your case can be resolved at the claims stage, however, there are cases that cannot be resolved at the claims stage and those cases require a lawsuit. A lawsuit is a formal process wherein your case is filed with the court and a jury is asked to decide the value of your case.