What Happens When You Reject an Insurance Settlement Offer

In the days and weeks after a car accident, you might be approached by an insurance adjuster. They might tell you the insurance company accepts fault and offers a settlement. They might even tell you it’s their best and final offer – so what happens if you reject it?

It is almost always a good idea to reject an initial settlement offer from the insurance company because it is usually a lowball offer. When you reject the settlement offer, that isn’t the end of your claim. You can still negotiate a better settlement or even litigate the matter with the help of an experienced Long Island car accident attorney.

At The Odierno Law Firm Accident and Injury Lawyers, we are skilled at negotiating great settlements for our clients. We represent accident victims throughout Long Island in personal injury lawsuits, working tirelessly to get them the money that they deserve for their losses. To learn more or to schedule a free initial consultation with a Long Island personal injury lawyer, reach out to our law offices.

What Should You Do When an Insurance Company Makes a Settlement Offer?

After a motor vehicle accident, it is pretty common for the at-fault driver’s insurance company to reach out to the other party in the crash. Typically, an insurance adjuster will call or otherwise approach you. They might ask you for a statement, give you some paperwork to sign, or make you a settlement offer.

As an initial matter, it is important to understand your rights in this situation. You are not obligated to give a statement to the other driver’s insurance company or sign any paperwork for them. In fact, it might actually hurt your case if you do so without legal representation. 

For example, you might say something about how you should have been driving more slowly…even if you weren’t speeding. The insurance company might take that statement and use it to claim that you were partially at fault for the accident. Under New York’s contributory negligence laws, this could reduce your total recovery for the accident.

Similarly, it isn’t a good idea to sign anything before you’ve had a chance to talk to a Long Island personal injury lawyer. Insurance companies are notorious for using underhanded strategies to gain a tactical advantage in personal injury claims. For example, they might ask you to sign a release to get your medical records so that they can pay for your treatment – but the release is much broader than it needs to be so that they can dig back through your medical history.

When an insurance company makes you a settlement offer, it is rarely in your best interests to simply accept it without talking to an attorney first. Any settlement offer will include paperwork that requires you to waive your right to bring a claim in the future. If the settlement check isn’t enough to cover all of your expenses, you won’t be able to go back to the insurance company in the future to ask for more money.

Ultimately, if an insurance company offers you a settlement, you shouldn’t be fooled by any representations that it’s a great offer or that it’s their “best and final” offer. Instead, you should consult with a lawyer before saying or signing anything. Initial consultations with a personal injury law firm are free, which allows you to get a better idea of the value of your case before you give up any rights.

Reasons to Reject an Insurance Company Settlement Offer

If another driver caused your car accident, then they are on the hook for all of your losses. This includes both direct and indirect losses. In a personal injury claim, you could seek compensation for:

• Property damage
• Lost wages
• Reduced earning capacity
• Medical bills
• Future medical treatment
• Pain and suffering
• Emotional distress
• Loss of enjoyment of life
• Scarring
• Disfigurement

Any settlement for a car accident should include money to cover all of these potential losses. If it doesn’t, then it probably isn’t a fair settlement offer.

With this in mind, there are many good reasons to reject an insurance company’s settlement offer. Depending on your situation, this could include:

• The settlement doesn’t include money for things like pain and suffering.
• You aren’t sure how your injuries will affect your ability to work in the future.
• You are still undergoing medical treatment.
• The offer seems too low.

One of the biggest reasons why you shouldn’t accept an initial or early settlement offer is that you simply won’t know the full extent of your losses yet. If you suffered an injury, it might take months (or longer) before you know how it will affect you long-term. Depending on the seriousness of your injury, you might have a permanent disability that requires ongoing medical treatment and affects your ability to work.

If you suffered a back or spinal cord injury in a rear-end accident, for example, you might need surgery to fix a herniated disc or other issue. The recovery process can be slow and you likely won’t know how well you have recovered for a year or longer. Accepting a settlement offer before you know what your limitations might be could mean that you won’t have enough money to move forward with your life.

Insurance companies are in business to make money. They are very successful at this, often earning billions of dollars in profits each year.  Part of how they make so much money is by paying out as little as possible on legitimate claims.

In other words, your interests are directly opposed to the insurance company’s interests. You want to receive enough money to cover your losses (including intangible ones like emotional distress). The insurance company does not want to pay you as much as you deserve. This fact alone is a good reason to reject an initial insurance company settlement offer.

Remember: initial offers are typically for far less than the true value of your case. You are also not required to accept this initial settlement offer. It is fairly common for a lawyer to be able to negotiate a settlement for much more money than the insurance company offered at first (without having to go to trial).

You should never accept an insurance company’s offer until you have had a chance to talk to a lawyer and learn more about your legal rights and options. In Suffolk, Nassau, and Queens County, you can set up a free consultation with The Odierno Law Firm Accident and Injury Lawyers to get a better idea of the value of your case and the potential for pursuing a legal claim. We won’t ever just accept what the insurance company says is a good value for your case – we will fight to get you top dollar for your injuries.

What Are Your Options After Rejecting a Settlement Offer?

If the insurance company offers you a low settlement amount, you do have options. The first thing that you should do is consult with an experienced Long Island car accident attorney. They can evaluate your case and help you determine how to proceed.

If you decide to hire a law firm, they will start by performing their own investigation. This helps to build a strong legal claim. It also forms a basis for your own demand for compensation. 

Your lawyer will send a demand letter to the insurance company. This letter will outline the facts of the case and the legal reasons that their insured is responsible for the crash. It will then end with a demand for compensation that includes money for all of your losses. This amount is usually much larger than any initial settlement offered by the insurance company.

At this point, your attorney can negotiate a settlement with the insurance company. This insurance company will often respond to a demand letter with a counteroffer. They might point out what they see as weaknesses in your case as a negotiating tactic.

Our lawyers are skilled at handling negotiations for car accident claims. We understand the tactics that insurance companies use and have our own strategies for dealing with them. Our goal in every case is to get our clients top dollar for their claims.

It is often necessary to file a lawsuit to protect your legal rights. Filing a formal lawsuit does not mean that your case will go to trial. In fact, the majority of personal injury cases are resolved outside of court. It does give you more time to negotiate a settlement.

The litigation process also requires both sides to exchange information and evidence through discovery. Getting more information about the case can help the parties get to a fair settlement. For example, if discovery reveals that the at-fault driver has a history of texting while driving or committing other driving infractions, that might be useful in getting the insurance company to agree to a settlement that meets your needs.

If informal negotiations haven’t been fruitful, you may also consider engaging in mediation or arbitration. Both are forms of alternative dispute resolution where a neutral third party (the mediator or the arbitrator) seeks to help the parties resolve their case. Mediation is a more formalized version of negotiations, with the mediator going back and forth between the parties to help them hammer out a deal. Arbitration is more like a mini trial, where the arbitrator hears arguments and reviews evidence from both sides before issuing a recommendation or order.

It is unusual for car accident cases to go to court. In most cases, insurance companies don’t want to risk a jury verdict that may meet or exceed the initial settlement demand from the injury victim. However, if the insurer refuses to offer fair compensation for your injuries, it may be necessary to go to trial to get the money that you deserve. After making arguments, introducing evidence, and questioning witnesses, our attorneys will ask the jury to return a verdict in your favor. 

You are never required to accept what you believe to be a low settlement offer from an insurance company. There are other options that you can pursue with the help of an experienced Long Island personal injury lawyer. They can advise you on whether a particular settlement offer is good based on the facts of your case and help you evaluate your choices for moving forward with a legal claim.

Hurt in an Accident? Give Us a Call.

Insurance companies take advantage of the fact that most people don’t understand their rights and aren’t familiar with the legal process. They may try to pressure you into accepting a lowball settlement offer because that benefits their bottom line. Our law firm will advocate for your best interests and help you get the money that you deserve for your losses.

Based in Melville, New York, The Odierno Law Firm Accident and Injury Lawyers fights for the rights of accident victims throughout Long Island. We handle all cases on a contingency fee basis, which means that we never charge a fee unless we get money for you. To learn more or to schedule a free initial consultation with a Long Island car accident lawyer, call our law offices today at 631-973-6221 or fill out our online contact form.