When dealing with an insurance company's settlement offer, you may wonder if you can refuse it. The answer is yes. As a consumer, you are free to accept or reject any settlement offer made by the insurance company.
It is unusual for the insurance company to immediately accept liability for the accident that injured you and offer you the money you deserve. Insurance companies will only do this when liability is apparent and the value of your case far exceeds the value of the policy maximum.
In most cases, you must work through an entire negotiation process with multiple offers and counteroffers. Chances are that you will have to respond to several offers from the insurance company to settle your case, all of which will not reflect the actual value of your case.
The best way to get insurance companies to pay for your injuries is to hire an experienced personal injury lawyer. Insurance companies often resist doing the right thing and may only do it with the threat of court hanging over their heads.
A Chula Vista personal injury attorney can represent you throughout the entire legal process, communicating with the insurance company on your behalf and negotiating for you to receive more compensation. They know how to effectively communicate with insurance adjusters and build a strong case in your favor.
Your lawyer can present evidence, gather documentation, and counter any lowball offers with compelling arguments. If you do not already have a personal injury lawyer representing you, now is the time to contact one to schedule a free initial consultation.
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How Do I Know the Insurance Company Has Offered Me Too Little Money?
Not only do you have the right to refuse an insurance company's offer, but it is precisely what you should do if it tries to settle your claim for less than you deserve.
If you accept a low settlement offer to get a check in your pocket, you will do yourself a grave disservice. You will cost yourself money that you may need in the future if you cannot earn as much income as you otherwise could have had it not been for your car accident injuries.
An experienced personal injury attorney will inform you when a settlement offer is paltry. An individual claimant only knows the actual value of a personal injury case with help from someone who always sees these cases.
You may need help understanding the broad concepts that underlie your personal injury compensation before you approach the insurance company or try to negotiate a settlement.
Your personal injury lawyer can value your case, working with expert witnesses as necessary if you have a complex claim or you have suffered a severe injury.
How Much Your Personal Injury Claim May Be Worth
Your personal injury attorney reviews your claim and tells you how much you should seek before you file anything with the insurance company or in court.
Specifically, your personal injury compensation will consist of:
- Medical expenses
- Lost earnings
- Pain and suffering
- Loss of enjoyment of life
- Scarring and disfigurement
- Emotional distress
If your loved one died from their injury, your family can recoup damages that you have suffered in a wrongful death lawsuit. These damages will include economic damages, such as lost earnings, and more subjective non-economic damages, such as loss of consortium and grief and distress from a family member's sudden and tragic loss.
Your Attorney Reviews Any Settlement Offer with You
Once you have received a settlement offer from the insurance company, your personal injury lawyer will review it on your behalf and speak with you to discuss the merits of the settlement offer.
Usually, you must continue working with the insurance company to reach a fair settlement (if you choose to continue negotiating).
Your personal injury attorney will advise whether to accept or reject a settlement offer. While you are always free to make your own decisions, you will usually listen to advice from someone who works with clients like you and deals with insurance companies for a living.
Your personal injury lawyer will promote your best interests, and they generally know whether you can get more money if you hold out in negotiations.
You Should Reject a Settlement Offer That Is Too Low
Your proper response should be to tell insurance companies no if they are not offering you enough in a settlement agreement, and it is important to remember the role they play in the claims settlement process.
Insurance companies become the legal representative of the party who may have been to blame for your accident injuries. When someone purchases an insurance policy, they pay premiums to the insurance company in exchange for legal defense and claims settlement if the policyholder causes an accident.
Thus, insurance companies will have motivations in your case at play at all times; specifically, they will do everything to avoid paying you the total value of your claim. They will use every tactic at their disposal to protect their financial interests at your expense, and one of their favorite strategies is to make you a shallow opening settlement offer.
Insurance companies may try to catch you unaware of the value of your claim, or they may want to add more time to the settlement negotiation process to increase your feeling of desperation.
You do not have to do anything if the insurance company does not offer you enough money. A settlement offer can result in a contract if you accept it, and the fact that you did not take it means the offer either lapsed or you rejected it.
Typically, you will reject the settlement offer as part of your settlement negotiation. Insurance companies know they should have offered you more money, so they may choose to raise their offer.
What to Do After Rejecting a Personal Injury Settlement Offer
At this point, you can choose one of two options:
- You can make a counteroffer to insurance companies, which has the effect of rejecting their offer because you did not respond with an acceptance. Although the offer is formally off the table, chances are that the insurance company will be willing to settle your claim for this amount in the future. Your counteroffer can spark continued negotiations, leading you closer to a settlement.
- Your lawyer can send a formal demand letter to the insurance companies, telling them they need to pay you a certain amount of money, or you may sue them in court. The level of formality in the demand letter often catches the insurance company's attention because it knows that your next step may be to file a lawsuit.
Insurance companies may take longer to respond to a demand letter because their lawyers need to review it. They want to stand on solid legal ground if the case goes to court.
You Can Always Take Your Personal Injury Case to Court
You do not have to continue with the claims or settlement negotiation process if you do not choose. You may have selected that as a more informal means of dealing with the insurance company that can result in a quicker settlement with less hassle (although nothing happens fast when the insurance company is part of the picture).
You can always begin your personal injury case in court by filing a lawsuit against the responsible party. Then, you will negotiate with the insurance companies because they have a duty to defend their policyholder from any lawsuit and provide a defense attorney.
Alternatively, you can end the claims process by taking the case to court and engaging the insurance company in the legal process.
You Still Negotiate With the Insurance Company After Filing a Lawsuit
Even if you fight insurance companies in court, you will still negotiate with them throughout the legal process. A personal injury case will rarely go to trial, and a settlement is still the most likely outcome.
Your personal injury attorney will still engage with the insurance company at various points in the litigation process. You may have early settlement discussions shortly after you file your case before the discovery process begins. Neither party may want to go through the intensive discovery process, and you both may wish for a quicker settlement agreement.
Alternatively, settlement negotiations can intensify after discovery when both parties have a better sense of the relative strength of their cases.
A judge may even order you into mediation before you reach a trial. You can end up negotiating with the help of a third party and getting closer to settling. Both you and the insurance company may decide it is in your best interests to mediate your dispute before going to trial.
Thus, you will still have the same negotiating challenges even if your case is in court. Insurance companies will rarely make you their best offer first and may even wait until right before your case goes to trial before they get serious about settling. They may pay their attorney a flat fee for the case, and they may not lose much of anything by taking longer to settle your case.
Either way, you must demonstrate your resolve throughout the negotiation process to get the money you deserve and not rush into an agreement that does not fairly compensate you.
How a Personal Injury Attorney Helps Your Case
Insurance companies will not listen to what you have to say if you try to approach them on your own. Fear is the most powerful motivator for any business, and insurance companies have no reason to worry unless they see a personal injury attorney on the other side of the table.
They may think they can impose their will on you because you can only hold them accountable if you know how to access the court system and make a persuasive case (which is next to impossible).
When dealing with the insurance company, your personal injury attorney gives you immediate credibility because they have a deep knowledge of the legal process.
The mere prospect that your personal injury lawyer can take insurance companies to court and make them pay may be enough to force the other side to be more reasonable during settlement negotiations.
Insurance companies may make you a more competitive opening offer, knowing that your personal injury attorney is there to hold them accountable.
It Costs You Nothing Out of Pocket to Hire a Personal Injury Lawyer
If you are going to hire a personal injury attorney for your case (and you will almost certainly do far better financially if you get legal help), the time to do it is as soon as possible after you have suffered an injury.
At the outset of your case, your personal injury lawyer's involvement can send a message to the insurance company that you mean business.
It is easy to hire a personal injury attorney because you will not have to pay any money out of pocket. They work on a contingency fee basis, meaning they only get paid if they win your case. The attorney's fee is typically a percentage of the settlement or judgment they secure for you. You do not owe them anything if they cannot recover your compensation.
Hire a Personal Injury Lawyer Today
Hiring a personal injury lawyer can level the playing field against the insurance company. Insurance companies are notorious for trying to minimize their payouts by offering low settlements.
An experienced personal injury lawyer can negotiate on your behalf and fight for the compensation you deserve. They will gather evidence, interview witnesses, and build a solid case to support your claim.
You can refuse the insurance company's settlement offer and consult with a personal injury lawyer at Rawlins Law Accident & Injury Attorneys, APC, which can significantly benefit your case. They will fight for your rights, maximize your compensation, and recover the justice you deserve.
Schedule A Free Case Evaluation Today!
Ashley Rae Rawlins
Founder and CEO - Rawlins Law Accident & Injury Attorneys, APC
Personal Injury Attorney
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