What Happens If I Reject a Settlement Offer From the Insurance Company?
What Happens if I Reject a Settlement Offer?
Here’s a common scenario: the insurance company made you an initial settlement offer on your car accident case, but it’s not enough to cover your costs. Or, perhaps you simply don’t know if the offer is fair or not.
Meanwhile, the insurance adjuster might be telling you that this is their final offer—take it or leave it—and that hiring an attorney will just mean less money for you.
Should you take the insurance settlement offer? What happens if you reject it?
Why You Should (Probably) Reject the Insurance Company’s First Settlement Offer
The insurance company’s goal is to save money. One of the ways they accomplish this is by offering a settlement that’s far less than the injured person deserves.
The insurance company knows that most people aren’t legal experts and don’t like confrontation. They also know you’re feeling the financial pressure to pay for medical expenses. You may have lost wages when you missed work due to your accident, and that has hurt your financial situation. Your injuries are causing pain, stress and frustration.
If you were hurt in an accident, filed an insurance claim, and received an initial offer that is too low to cover the cost of your medical bills, lost wages, and other related expenses, you shouldn’t be surprised; the insurance adjuster is likely hoping you’ll accept a lowball settlement offer.
Just because the insurance company says something is their “final offer” doesn’t mean it’s the truth. But at the same time, understand that if you do reject an offer, the insurance company is not obligated to offer it again. If they discover new evidence that hurts your case, it is possible that you will receive a lower offer—or they may not offer any settlement at all.
We always recommend talking to an experienced attorney before you accept or reject a settlement offer.
How North Carolina's Contributory Negligence Law Can Complicate Your Personal Injury Claim
In North Carolina, there is one personal injury law that can really hurt your case. Under the unfair contributory negligence law, if you are found to be partially responsible for the accident in any way, you cannot recover any compensation. This means that if another driver is very clearly at fault, you could lose your right to compensation if you are found to be even 1% at fault for the accident.
There are some potential exceptions to this, including the “last clear chance doctrine” and gross negligence situations. But in any case, hiring an attorney with in-depth knowledge and experience arguing cases like this is highly recommended. Even simple, innocent mistakes when speaking with an adjuster could have catastrophic consequences for your claim.
If you are trying to recover accident-related losses, the defendant will almost certainly try to argue that you are partially responsible for the accident. A lawyer can help with accident reconstruction, expert witnesses, and more to help show that you deserve compensation as an accident victim.
RELATED: Why Contributory Negligence Matters for Your North Carolina Personal Injury Case
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SCHEDULE YOUR CONSULTATIONHow to Reject the Insurance Company’s First Settlement Offer (and What to Do Next)
Remember, the initial offer is just that—an offer. If you’ve decided to reject the insurance company’s offer, it doesn’t mean you are no longer eligible to obtain compensation. Telling the insurance company “no” is simply part of the settlement negotiations process.
If you do want to reject the insurance company’s first offer, you should submit a letter that outlines your refusal. It is in your best interest to draft this with the help of an experienced personal injury lawyer.
Respond With a Counteroffer
A counteroffer (also called a demand letter) is your response to the insurance company and your demand for what you believe is fair compensation. It outlines the details of your claim, related costs, and the impact it had on your life.
Based on that information, the counteroffer will include the settlement amount that you and your lawyer have determined is a fair and just resolution.
To calculate the true value of your case, your personal injury lawyer will consider:
- Medical expenses: Hospital bills, medication costs, medical bills, ambulance rides, emergency medical treatment, ongoing services, such as physical therapy, anticipated future medical expenses, and any other related costs. This also includes future anticipated medical costs.
- Lost income: Standard wages, overtime pay, bonuses, and any other income you may have missed out on. Again, this also includes future lost wages, or even reduced future earning capacity if your injuries force you to change careers or delay career advancement.
- Household services you need because of your injury: Cleaning services, lawn services, in-home care, and other costs.
- Emotional injuries: Pain and suffering, anxiety developed as a result of the accident or injury, and any related emotional impact.
- Any future expenses: This usually covers long-term treatment, renovations to your home, assistive devices, and any other ongoing costs related to your injury.
Your lawyer will also likely suggest waiting until you’ve reached maximum medical improvement (MMI) to submit a demand letter. This means that your medical condition has stabilized and no further improvement is expected. If you don’t wait for MMI, it’s more likely that future estimates for medical bills, lost wages, and pain and suffering will be inaccurate.
Once complete, your lawyer will deliver the letter to the insurance company, which will respond to your counteroffer. In fact, it’s not unusual to have several back-and-forth settlement negotiations before coming to an agreement.
Your personal injury lawyers have a duty to always act in your best interest. At Myers Law Firm, we will never agree to a settlement offer without your approval. We will also provide you with objective advice about whether we think an offer is fair, as well as the benefits and risks of accepting or rejecting it.
If you can’t come to a fair settlement, your attorney may suggest you file a personal injury lawsuit and take your case to trial. When the insurance company refuses to cooperate, it may be in your best interest.
RELATED: How Are Typical Car Accident Settlement Amounts Determined?
Why Is It Important to Work With an Experienced Personal Injury Lawyer?
Injured people who work with experienced personal injury attorneys tend to receive higher settlements than those who represent themselves.
Why? The insurance company negotiates with injured people every day. They know how to manipulate people into accepting low settlements. They may try to use high-pressure tactics, like short timelines and strong language, to push you to accept their first offer. They may push even harder if they know you have a strong case that could be taken to court. Aggressive insurance adjusters can be very intimidating.
It can be extremely difficult to stand up to these tactics, especially when you’re unfamiliar with the process and are trying to focus on your recovery. On top of that, North Carolina’s contributory negligence laws only increase the risk for injury victims. Plus, if you do accept an offer that’s too low, you won’t be able to ask for more compensation later—the case is closed.
Working with an experienced personal injury attorney helps you avoid mistakes and give you the time and space to focus on your healing.
RELATED: Do I Need a Lawyer for a Car Accident in North Carolina?
The Team at Myers Law Firm Is Ready to Help You Navigate the Insurance Claims Process
The insurance claims process is notoriously complex and stressful. Our law firm has been standing up for injured people in Charlotte, North Carolina for decades. We know how to handle the insurance company’s tricks and are ready to stand by you to get a fair settlement.
To learn more about your options, the value of your case, and whether you should turn down the company’s first offer, call (888) 376-2889 or complete this brief form. We’ll meet with you in a free case evaluation so you can make the best choice for your future.
The content provided here is for informational purposes only and should not be construed as legal advice on any subject.
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