Request Free Consultation

One of the most stressful aspects of the aftermath of a car accident is having to deal with insurance companies. Insurance companies often try to settle claims for as little as possible, which may result in you receiving a settlement that doesn’t fully cover your losses. Therefore, you may be wondering, what happens when you reject an insurance settlement offer?

Rejecting an Insurance Settlement Offer

What happens when you reject an insurance settlement offer?

Personal injury cases may involve long-term costs that are difficult to estimate early in the process. These costs include ongoing medical treatment, loss of income and emotional distress. Accepting a low offer might leave you without the financial means to cover these expenses in the future.

For example, if you have suffered a back injury, your immediate medical bills may not reflect the long-term rehabilitation, physical therapy and lost wages that could arise. Once you accept an offer, your case closes, and it is unlikely that you’ll be able to go back and ask for more compensation later–even if your expenses end up being higher than you originally anticipated.

How Do You Respond to a Low Settlement Offer?

When you receive a low settlement offer, it’s important not to rush into a decision. First, take time to thoroughly review the offer with your attorney. Your attorney can help you calculate the true value of your case, considering not only your current medical expenses and lost wages but also potential future costs. They can then draft a counteroffer that reflects the compensation you deserve.

Responding to a low settlement offer involves presenting evidence that supports your claim for a higher amount. This evidence can include:

  • Medical records that show the extent of your injuries and the projected future medical care you will need.

  • Documentation of lost wages and future earning potential if your injury affects your ability to work.

  • Expert testimony from doctors, economists or accident reconstruction specialists, depending on the specifics of your case.

Once the insurance company receives your counteroffer, they will likely reassess their initial offer. This back-and-forth negotiation process can take time, but with a strong case, it can lead to a more favorable settlement.

What Happens If You Don’t Agree to a Settlement?

If you and the insurance company cannot agree on a reasonable offer, you have other options. These options include continued negotiations, mediation or arbitration, filing a lawsuit

Continued Negotiations

In many cases, rejecting an initial settlement leads to further negotiations. Your attorney may go back and forth with the insurance company to try and reach an agreement. This process can be lengthy, but if you stand firm, it may result in a better offer.

Mediation or Arbitration

What happens in mediation when you reject an insurance settlement offer?

If negotiations fail, both parties may agree to engage in mediation or arbitration. These processes allow both parties to present their cases to a neutral third party who helps facilitate a resolution. Mediation is non-binding, meaning you do not have to accept the outcome, whereas arbitration may be binding, depending on the agreement.

Filing a Lawsuit

If all negotiations fail, you may need to file a lawsuit to seek fair compensation. Filing a lawsuit can be a powerful tool to encourage the insurance company to settle, as they often prefer to avoid the risks and costs associated with going to trial.

Going to Trial

If your case proceeds to trial, your attorney will present your case before a judge or jury. Trials can be unpredictable, and there is always a risk that you may not receive the compensation amount you’re pursuing. However, a trial can also result in a significant award, especially if the jury sides with you and believes that the insurance company acted in bad faith by offering an unreasonably low settlement.

Risks and Rewards of Rejecting a Settlement Offer

Rejecting an insurance settlement offer is a major decision that carries both risks and rewards. On one hand, you may open the door to better compensation that fully accounts for your medical bills, lost wages and pain and suffering. However, there’s no guarantee that the negotiations, mediation, arbitration or lawsuit will work in your favor.

Your attorney can guide you through this decision, assessing the strength of your case and your likelihood of winning. In some cases, it may be wiser to continue negotiating, while in others, going to trial could be the best choice. The important thing is to make sure you are fully informed and that you have legal support every step of the way.

How Long Does It Take To Get a Settlement After a Rejection?

The timeline for receiving a settlement after rejecting an offer depends on several factors. Cases that require mediation, arbitration or litigation can take months or even years to resolve.

In some instances–especially if your case is strong and well-documented–the insurance company may come back with a higher offer shortly after you reject their initial proposal. Other times, you may need to file a lawsuit, which significantly extends the timeline. However, despite the wait, rejecting an inadequate offer could lead to a much better outcome in the end.

How Do You Know When to Settle?

Settling too early can leave you without sufficient funds to cover future expenses, but holding out for too long can delay the resolution of your case.

Your attorney can help you weigh the pros and cons of accepting a settlement at different stages of your case. If the offer covers all of your expenses, both present and future, and provides fair compensation for your pain and suffering, it may be in your best interest to settle. However, if the offer is significantly below what you need, rejecting the settlement and continuing negotiations or going to court may be the best option.

Why You Need Legal Representation

Should you get a lawyer when you reject an insurance settlement offer?

Insurance companies may take advantage of unrepresented plaintiffs, pressuring them to accept low offers. When you have an attorney by your side, you benefit from their experience in negotiating with insurance companies and fighting for fair compensation.

Experienced attorneys, such as our team at Sargon Law Group, understand the tactics of insurance companies and how to counter them. We know how to gather the evidence needed to build a compelling case and help you reach the best possible outcome.

If You’re Considering Rejecting an Insurance Settlement Offer, Sargon Law Can Help

If you’ve received a low offer, you may be wondering what happens after you reject an insurance settlement offer. We at Sargon Law Group are committed to helping personal injury victims in Arizona, New Mexico, California and Colorado. Contact us today so we can help you more forward and collect the compensation you deserve.