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What Happens When You Reject an Insurance Settlement Offer?

What Happens When You Reject an Insurance Settlement Offer

If you believe that an insurance company’s initial settlement offer is inadequate to cover your losses following a personal injury accident, you are certainly able (and highly advised) to decline the offer. When you decline the initial offer, it usually opens the door to negotiations. This is when you can present additional evidence, counter-offers, and justifications for a higher settlement. It also sends a message that you’re willing to advocate for fair compensation, potentially leading to a more favorable resolution.

An experienced personal injury lawyer can be invaluable during this phase, as they can help you evaluate the offer, understand the full extent of your damages, and communicate effectively with the insurer to seek more appropriate compensation. If a reasonable settlement cannot be reached through negotiation, your lawyer may advise proceeding to a personal injury lawsuit to seek full and fair compensation.

At TLF: The Medical Injury Law Firm, we offer skilled legal guidance in a variety of injury cases, from medical malpractice to birth injuries to commercial truck accidents and more. Our firm has a strong track record of negotiating with insurance companies throughout Ohio and Northern Kentucky, achieving favorable outcomes for clients.

Whether you’re unsure about an insurance company’s offer or you know for a fact you deserve more compensation to cover your losses, reach out to our dedicated legal team at TLF: The Medical Injury Law Firm for a free consultation to discuss your legal options and ensure your rights are fully protected. Call us toll-free at (800) 698-4054 or complete our online intake form to get started today. 

How To Respond to a Low Settlement Offer

What is an Insurance Settlement?

An insurance settlement is a financial agreement between an insurance company and a claimant to resolve a claim for losses or damages. It involves the insurance company offering a monetary payment to the claimant in exchange for releasing them from further liability related to the incident or claim.

However, claimants should always be cautious when they’ve been made a settlement offer, as the initial offer might not adequately cover all expenses or reflect the true impact of the accident.

Suppose the insurance adjuster presents an insufficient offer. In that case, it is advisable to consult an experienced personal injury lawyer who can assess the fairness of the offer and continue negotiating with the insurance company for a higher payout. 

Should I Accept the First Offer From an Insurance Company for a Car Accident Claim?

It’s generally not advisable to accept an insurance company’s first offer for a car accident claim (or any personal injury claim, for that matter). Often, the initial offer is much lower than what the claim might actually be worth, as insurance companies aim to minimize payouts and close the matter as quickly as possible.

This lowball settlement offer may not represent fair compensation for the extent of their injuries and losses. In fact, many accident victims often find that the first offer does not adequately cover their medical bills, lost income, property damage, and/or a variety of other damages.

This is when it becomes crucial to consult a legal team that can assess the offer’s fairness and negotiate for a higher settlement that better reflects the true value of the claim. An attorney’s job is to advocate for their client’s best interests and ensure they receive the compensation they deserve from the insurance company. As such, it’s often in the best interest of accident victims to refrain from accepting the first offer and seek guidance from legal professionals who can pursue a higher settlement.

Reasons to Reject a Settlement Offer

Why Do Insurance Companies Want to Settle Quickly?

Insurance companies often aim to settle claims quickly due to various reasons. One primary motivation is to control costs and liabilities by offering a lower settlement amount before the full extent of the damages is known. They hope to avoid lengthy settlement negotiations and potential legal expenses by quickly making an offer and urging the claimant to accept. A quick settlement allows them to close the claim promptly and move on to other matters. 

Reasons to Reject a Settlement Offer

Accident victims might choose to reject an insurance settlement offer if it does not cover all accident-related losses, including medical care, lost wages, and other damages.

This is especially true if the victim has suffered serious, potentially catastrophic injuries and has not reached maximum medical improvement. In these types of personal injury cases, accepting a settlement quickly is almost never in the claimant’s best interest, as the settlement more than likely will not fully account for these expenses. Additionally, if the insurance offer fails to address non-economic damages such as pain and suffering, it may not represent a fair settlement.

If the dollar figure is significantly lower than what the claimant and their legal team believe the claim is worth, rejecting the offer and continuing negotiations may be necessary to reach a fair offer that reflects the claim’s full value. 

Should I Accept the First Offer From Insurance Company

How To Respond to a Low Settlement Offer

To properly reject an insurance settlement offer, you must communicate the rejection in writing through a formal demand letter. This letter should clearly state the reasons for rejecting the offer, such as it not providing maximum compensation for the damages incurred. Provide specific reasons for your rejection, highlighting the damages and losses not covered by the proposed settlement. These reasons could include medical expenses, lost wages, property damage, pain and suffering, and other relevant costs. You should also include any supporting documentation, such as medical reports, repair estimates, or witness statements, to substantiate your claims. Detailing this information strengthens your position and shows that you’re prepared to fight for a more equitable settlement.

In addition to stating your reasons, outline what you believe would be a fair settlement and request further negotiations. This formal approach encourages the insurance company to take your claim seriously and continue discussions.

Seeking guidance from a skilled personal injury lawyer like those at TLF is highly recommended when you plan to reject a settlement offer. They can help draft the demand letter, ensuring it’s legally sound and contains all necessary details, as well as negotiate on your behalf with insurance adjusters. Plus, by having a lawyer involved, you demonstrate that you are taking this seriously and are prepared to pursue legal action if necessary, which can motivate the insurance company to consider a more fair number.

Should I Accept My Insurance Settlement Offer

What Happens Next?

After rejecting the initial settlement offer, both parties may engage in further discussions and negotiations to reach a mutually acceptable agreement. The insurance company may make a revised offer in response to your rejection, or you and your attorney may counter with a proposal that better reflects the extent of your damages. If settlement negotiations still don’t result in a just settlement offer, the case may progress further to mediation, arbitration, or a personal injury trial.

Counteroffer Negotiations

At TLF, when an insurance company’s offer doesn’t fully compensate our client, we begin strategic counteroffer negotiations with the claims adjuster. This back-and-forth process involves analyzing the offer in detail and identifying areas where it falls short in covering the damages sustained. 

A personal injury attorney on our team will then draft a comprehensive counteroffer, highlighting medical expenses, lost income, pain and suffering, and other factors the initial offer overlooked, presenting evidence to justify a higher settlement. If the insurance company refuses to budge, we’re more than prepared to bring the case to the next stage of legal action. 

Mediation and Arbitration

After declining an insurance settlement offer, the next steps may involve mediation or arbitration to resolve the dispute. In mediation, a neutral third party facilitates discussions between the injured person and the insurance company to reach a mutually acceptable agreement. In some cases, a new insurance adjuster may become involved in the process of reassessing the claim and negotiating with the other party.

If mediation fails, arbitration may be pursued, where an impartial arbitrator evaluates the case and issues a binding decision. These alternative dispute resolution methods offer opportunities for both parties to present their arguments and negotiate settlement offers outside of court. 

Filing a Lawsuit and Going to Trial

When an insurance company refuses to cooperate and settlement negotiations fail, filing a lawsuit and going to trial is the next step in pursuing a personal injury claim. 

In preparation for trial, the Northern Kentucky and Cincinnati personal injury lawyers at TLF will meticulously analyze the case and craft legal strategies to present the full extent of the plaintiff’s damages while also holding the insurance company accountable for any bad faith tactics employed during negotiations. This might include instances where the insurer delayed or denied the insurance claim without justification, manipulated evidence, or engaged in deceptive practices.

This involves thoroughly examining and presenting evidence, including medical records and documentation of financial losses such as medical expenses and lost wages. Additionally, witness testimonies may be crucial in substantiating the plaintiff’s claims and strengthening their case before the court. This evidence is used to build a compelling narrative that conveys the impact of the injury on the plaintiff’s life, work, and future well-being.

This level of preparation and planning by TLF’s personal injury lawyers is essential to ensure that our client receives the compensation they deserve.

Not Happy With Settlement Offer

Not Happy With Settlement Offer? The Personal Injury Attorneys at TLF Are Here to Help

It’s important to remember that you DON’T have to accept a settlement offer if you feel it doesn’t accurately account for the serious injuries, damages, and losses you or a loved one have experienced. Don’t let insufficient settlement offers undermine your legal rights.

At TLF: The Medical Injury Law Firm, our team of experienced personal injury lawyers is dedicated to advocating for your best interests and ensuring you receive everything you need to make a full recovery. With our extensive knowledge and commitment to securing maximum compensation for our clients, we stand ready to guide you through the entire legal process, whether that ends in negotiations, mediation, or a successful court award.

Whether you’re considering accepting a settlement offer or need assistance in rejecting and pursuing additional compensation, we’re here to help. Call an experienced attorney at our law firm today at (800) 698-4054 or reach out online to schedule your free consultation today.


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We are happy to offer a free consultation to evaluate your case. If you hire us as your legal counsel, we will represent you on a contingency-fee basis. You will pay no attorneys’ fees unless we recover financial damages.