When you reject an insurance settlement offer after an accident, you’re making a critical decision that affects your case and financial recovery. Understanding what happens when you reject an insurance settlement offer helps you make informed choices about your claim. The decision to accept or reject an offer should never be rushed, and having experienced legal guidance makes a significant difference in the outcome of your case.
Your Right to Reject Settlement Offers
You always have the right to reject any settlement offer from an insurance company. No one can force you to accept an amount you believe is unfair or inadequate. The insurance company makes an offer, and you can accept it, reject it, or make a counteroffer.
Injured parties have the right to seek fair compensation for their damages. Rejecting a settlement offer doesn’t close the door on negotiations. Insurance companies often make low initial offers, expecting rejection and further negotiation.
What Happens Immediately After Rejection
When you reject a settlement offer, the insurance company typically responds in one of several ways. They may make a higher offer, stand firm on their original offer, or temporarily stop negotiations.
Most insurance companies will ask why you rejected the offer. This is where having an attorney becomes valuable. The insurance adjuster may also request additional documentation to support a higher settlement, such as medical records, bills, proof of lost wages, or expert opinions.
The Negotiation Process Continues
Rejecting an offer usually leads to continued negotiations. Both sides exchange offers and counteroffers until reaching an agreement or determining that settlement isn’t possible.
Your attorney will present evidence supporting a higher settlement amount, including complete medical records, bills for treatment and future care, documentation of lost wages, expert testimony about long-term impacts, and evidence of pain and suffering.
An insurance company’s adjustment reflects the sum of money the company is willing to pay after negotiation and consideration of the parties’ rights. Each round of negotiation should move closer to a fair settlement, though the process can take weeks or months.
Risks of Rejecting a Settlement
While you have every right to reject inadequate offers, you should understand the potential risks. The insurance company might not increase its offer significantly. Some adjusters have limited authority to raise offers, or the company might genuinely believe their offer is fair.
Rejecting an offer and filing a lawsuit involves additional time and expense. Litigation takes months or years to resolve, and there’s always some risk at trial, as juries are unpredictable. However, most cases settle before trial, and those that go to trial often result in higher awards than initial offers.
When Rejection Makes Sense
Certain situations clearly warrant rejecting a settlement offer. If the offer doesn’t cover your medical bills, it’s inadequate. Your settlement should cover all past medical expenses and reasonable future medical needs.
Low offers that ignore non-economic damages should be rejected. Pain and suffering, emotional distress, and loss of enjoyment of life have real value.
Other clear reasons to reject include:
- Not reaching maximum medical improvement
- Offers that don’t account for future lost wages
- New evidence strengthening your case
- Bad faith insurance practices
- Ongoing significant pain or disability
Your attorney can evaluate whether an offer fairly compensates you for all your losses. Their experience with similar cases helps determine what your claim is truly worth.
The Lawsuit Option
If negotiations fail after rejecting settlement offers, filing a lawsuit becomes the next step. This doesn’t mean you’re giving up on settlement. Most lawsuits still settle before trial.
Filing a lawsuit shows the insurance company you’re serious about pursuing fair compensation. Many insurers don’t make their best offers until a lawsuit is filed. Once filed, the discovery process begins, where both sides exchange information and gather evidence. This often reveals information that strengthens your case and leads to improved settlement offers.
Georgia has a two-year statute of limitations for most personal injury cases. Don’t wait until the deadline approaches to reject inadequate offers and file suit.
How Attorneys Strengthen Your Position
Legal representation significantly improves outcomes when rejecting settlement offers. Your attorney will calculate the full value of your claim, including all economic and non-economic damages. They know what similar cases have settled for and what juries typically award, preventing you from accepting inadequate offers.
Making the Right Decision
Deciding whether to reject a settlement offer requires careful consideration of multiple factors. Don’t let pressure from the insurance company rush your decision.
Consider the strength of your case. Strong cases with clear evidence of liability and well-documented damages justify rejecting low offers. Think about your financial situation and whether you can wait months or years for a better settlement. However, accepting too little now can leave you financially struggling later.
Evaluate the gap between the offer and fair value. Most importantly, consult with an experienced attorney before making your decision. They can provide objective advice based on legal knowledge and case experience.
What Not to Do After Rejecting
Certain mistakes can harm your case after rejecting a settlement offer.
- Don’t discuss the case on social media, as insurance companies monitor for evidence to use against claimants.
- Don’t miss medical appointments or stop treatment, as gaps suggest injuries weren’t serious.
- Don’t talk to the insurance company without your attorney present, as adjusters may try to get you to say things that hurt your case.
Understanding what happens when you reject an insurance settlement offer empowers you to make decisions that protect your interests. While rejection involves some risks, accepting an inadequate offer often means settling for far less than you deserve.
Contact The King Firm Car Accident and Personal Injury Lawyers for a Free Consultation
The King Firm Car Accident and Personal Injury Lawyers brings over 16 years of combined experience to personal injury cases and has recovered millions for our clients. If you’ve received a settlement offer and aren’t sure whether to accept it, contact us today, or call us at (229) 386-1376, for a consultation about your case.
