What Happens When You Reject an Insurance Settlement Offer

You can reject an insurance settlement offer if you believe it is inadequate to cover your losses. When you decline an offer from an insurance company, it is an opportunity to commence settlement negotiations.

Rejecting a settlement offer signals to an insurer that you will advocate for a fair settlement value that matches your losses. You should reject a settlement offer if you can justify your position with solid evidence.

An experienced personal injury attorney can help you evaluate various offers and negotiate a better deal matching your losses.

Reasons to Reject an Insurance Settlement Offer

Many injured victims obtain compensation from the insurer of the at-fault party. Even so, some victims receive settlement offers that barely cover their losses. It is in the interest of insurance companies when they make low settlement offers, a move aimed at shielding their profit margins.

Despite your physical or financial position, evaluating the merits of a settlement offer is advisable.

Here are a few reasons why injured victims reject settlement offers:

• You have not attained maximum medical improvement
• The offer is too low and doesn’t cover your losses
• You do not understand the full extent of your losses
• The settlement offer doesn’t include non-economic losses
  What Happens If You Reject an Insurance Settlement Offer?

Once an insurer receives an insurance claim, they may test your resolve by tabling a settlement offer. You can reject the first settlement offer to set the ground for settlement negotiations.

A personal injury attorney can compile various sources of evidence to convince the insurer to a higher valuation of your losses.

Your attorney can propose a counteroffer, a value likely to cover your losses. If the insurer declines to improve their offer, an attorney can respond with a demand letter. An insurer may yield to settlement negotiations to avoid the cost and complex nature of a court case.

Lastly, an attorney is prepared to litigate your matter if the settlement negotiations are unsuccessful. A judge or jury can issue a court order compelling the at-fault party to compensate the injured victim.

Why Do Insurance Companies Lowball Offers?

If you’re pursuing a personal injury claim, you can expect a low settlement offer from an insurance company. Insurance companies make low settlement offers to protect the profitability of their operations.

An ideal settlement offer should cover various injury-related losses, including medical expenses, lost income, out-of-pocket expenses, and loss of consortium. Instead, an insurer will offer a settlement that enhances their shareholders’ value.

Sometimes, an insurance adjuster may conduct improper investigations, miss essential facts, and fail to establish the extent of your damages. They may also ignore important facts and evidence, ultimately affecting the value of your claim.

What Not to Do When Faced with a Low Offer

Don’t Settle For Less

You may not recover from an injury after accepting a low settlement offer. When you take a lowball settlement offer, you also lose your chance to litigate the matter in a court of law.

Insurance companies require injured victims to sign release forms, forfeiting the opportunity to pursue additional compensation. Instead, speak to an experienced attorney to handle the medical expenses and settlement negotiations.

Don’t Handle Settlement Negotiations Without Legal Representation

Most injured victims assume insurance companies will treat them fairly, considering their physical state. Some insurers may refer you to arbitration companies to resolve disputes that arise during negotiations.

An insurance company may advise against hiring an attorney as an opportunity to take advantage of you. Insurance companies may bank on your unfamiliarity with insurance laws when making a low settlement offer.

What To Do If You Reject an Insurance Settlement Offer

You are not legally obligated to accept a lowball settlement from an insurance company. Request a personal injury attorney to demand a value that matches your losses.

Consider the following actions after receiving a lowball offer from an insurance company:

• Evaluate Your Policy: Make sure the settlement offer covers all damages as stipulated in the insurance policy document. Ensure you and the adjuster have complied with the policy terms.

• Inform the Adjuster: Seek clarification from the insurance adjuster regarding the details of the settlement offer.  Ask for a breakdown of the various damages to understand the settlement value presented by the insurance adjuster.

• Gather Evidence: You’ll need evidence to justify rejecting the settlement offer. Sources of evidence like medical records will form a basis for negotiation for a settlement value that matches your losses. Compile various sources of evidence, including police accident reports, eyewitness statements, traffic camera footage, and opinion from an accident reconstruction expert.

How to Respond to a Low Settlement Offer

Here’s how you can respond to a low settlement offer:

Negotiate

When an insurer makes a settlement offer, it is not a ‘take it or lose it’ situation. You have a right to commence settlement negotiations backed with evidence of your injury and its impact on your life.

Settlement negotiations commence with a strategic counter-proposal with the insurance adjuster. The process involves analyzing the proposal’s details, identifying weak points, and demanding a better deal for your losses.

Mediation and Arbitration

You can attempt mediation and arbitration to resolve the dispute. In mediation, a neutral third party facilitates discussions between the injured party and the insurance company to reach a mutually acceptable offer.

File a Lawsuit

You can initiate a personal injury lawsuit if you and the insurance company can’t agree on a settlement value. Filing a trial will bring the matter before a judge or jury who may decide to award the damages per your request.

Get In Touch With an Experienced Personal Injury Attorney to Discover Your Options

The chances of recovering from a physical or mental injury depend on the settlement value you obtain from a claim. An insurer may take advantage of your situation by tabling a lowball settlement offer, highlighting the need for representation.

The Barnes Firm has over 500 combined years of experience, which gives us an advantage in protecting your rights.

Contact us online or at (800) 800-0000 for a free case evaluation.

Richard Barnes – President of The Barnes Firm

Richard Barnes: “As President of The Barnes Firm, I have dedicated my career to achieving justice in hundreds of cases for the victims of injuries caused through the fault of others. Additionally, I have been honored to have been elected Best Lawyer and a Super Lawyer”

Years of Experience: 30+ years
LinkedIn Profile: Richard Barnes