What Happens When You Reject an Insurance Settlement Offer?
When you’re involved in an accident or a dispute requiring insurance coverage, you might receive a settlement offer from an insurance company. While this can seem like a resolution to your case, many people hesitate, wondering, “What happens if I reject this settlement offer?” Rejecting an insurance settlement can be an intimidating decision, but it is often necessary to ensure you receive the compensation you rightfully deserve. If you need support, call Brumley Law Firm at (833) 832-2727.
Why You Might Reject a Settlement Offer
Insurance companies are in the business of protecting their bottom line, which often means offering a settlement amount lower than what you might need to cover your losses fully. Here are a few common reasons for rejecting a settlement offer:
- The Offer is Too Low: Initial offers from insurance companies are often much lower than the claim’s actual value. Accepting these offers could leave you financially responsible for additional expenses.
- Unaccounted Expenses: The offer might fail to consider all your medical bills, lost wages, property damage, or future costs related to the accident.
- Denial of Liability: If the insurance company disputes fault, their offer may reflect that disagreement, leading to an amount that’s unfair or insufficient.
- Emotional or Non-Economic Damages: Many initial settlement offers exclude or undervalue compensation for pain and suffering, emotional distress, or loss of enjoyment of life.
Rejecting an offer gives you an opportunity to pursue a fair resolution that truly addresses your losses and needs.
What Happens After You Reject a Settlement Offer?
1. You Can Negotiate
In most cases, rejecting an offer signals the beginning of a negotiation process. After you reject the offer, you (or your attorney, if you have one) will typically respond with a counteroffer. This counteroffer should be based on a thorough evaluation of your damages, including medical expenses, lost income, property damage, and non-economic losses.
During this back-and-forth, evidence plays a crucial role. Medical records, repair estimates, witness statements, and expert opinions can strengthen your claim and justify the amount you’re seeking.
2. The Insurance Company May Respond With Another Offer
Insurance companies rarely walk away from negotiations entirely. Instead, they may return with a revised settlement offer. This second offer could be closer to the amount you’re seeking, though it’s still important to carefully evaluate it.
3. The Claim Could Escalate to Litigation
If negotiations stall or the insurance company refuses to offer a fair settlement, the next step may involve filing a lawsuit. Litigation is not the first option for most claims, but it can become necessary if the insurance company acts in bad faith or refuses to provide reasonable compensation.
Filing a lawsuit doesn’t always mean your case will go to trial. Many lawsuits are settled during pretrial negotiations or through alternative dispute resolution methods like mediation or arbitration. However, preparing for litigation shows the insurer that you are serious about pursuing your claim.
4. Statute of Limitations Comes Into Play
When rejecting a settlement offer, it’s important to remember that you are operating under a statute of limitations. In Washington State, for example, the statute of limitations for personal injury claims is generally three years from the date of the incident. If you wait too long to take action, you could lose your right to seek compensation entirely.
How to Make the Right Decision
If you’re considering rejecting an insurance settlement offer, here are a few steps to guide you:
- Consult With an Attorney: An experienced Olympia personal injury attorney can evaluate your case, estimate its true value, and guide you through negotiations or litigation.
- Document Everything: Keep detailed records of all expenses, medical treatments, and communications with the insurance company.
- Assess Your Priorities: Determine whether you’re willing to invest the time and effort required to pursue a higher settlement.
- Stay Informed: Educate yourself about your rights, the claims process, and common tactics used by insurance companies.
Call Brumley Law Firm Today
Rejecting an insurance settlement offer is a decision that should not be taken lightly. While it can feel daunting, it’s often a necessary step to ensure you receive fair and just compensation for your losses. By understanding the process and enlisting professional help when needed, you can navigate the complexities of your claim with confidence.
If you’ve received a settlement offer that doesn’t meet your needs, don’t settle for less than you deserve. Call us now at (833) 832-2727 or complete our online form to schedule your free consultation today. Let us help you secure the compensation you’re entitled to.