What Happens if You Reject an Insurance Company’s Settlement Offer?
After suffering an injury in an accident because of the negligence of another party, the compensation you recover from the negligent party’s insurance company can help you with medical expenses and cover other losses and damages. Unfortunately, most insurance companies place money over policyholders and personal injury victims. Some settlement offers that insurance companies make to personal injury victims are not enough to meet their needs. When an insurance company presents you with an unfair settlement offer, it is important to know that you can reject the offer. Many personal injury victims are unaware of their right to reject an insufficient settlement offer. But what happens after you reject an insurance company’s settlement offer? While you have the right to reject a settlement offer, it is important to consider what happens after you reject an offer. In this article, we discuss what happens if you reject an insurance company’s settlement offer.
Evaluate the Offer
Before rejecting an insurance company’s settlement offer, you should thoroughly review the offer, preferably with the help of a qualified attorney. You need to evaluate whether the offer adequately covers your accident-related losses and damages. Accurately assess the extent of your damages, which may include medical expenses, property damage, lost wages, and pain and suffering. Often, the insurance company’s first settlement offer will be low. The first settlement offer from the insurance company usually does not account for all damages and losses.
What Happens if You Reject an Insurance Company’s Settlement Offer?
The first settlement offer from the insurance company is just that: an offer. You are not obligated to accept the offer. Insurance companies even expect personal injury victims to reject the first settlement offer. However, rejecting an insurance company’s settlement offer is not as simple as demanding that the insurance company pay you what you deserve.
Generally, you need to write to the insurance company and formally reject the settlement offer. It is best to explain your reason(s) for rejecting the offer and make a counteroffer. A counteroffer demands a higher compensation amount that sufficiently covers all your accident-related losses and damages.
If you reject the insurance company’s settlement offer, it will likely lead to negotiations. You need to gather all relevant evidence to strengthen your position in negotiations and support your claim. This may include, among others, medical records, pictures of the accident scene, witness statements, and repair estimates.
If you and the insurance company cannot reach an agreement during the negotiation process, you may need to file a lawsuit in court. Litigation can significantly increase the cost and time involved in resolving your case. Before filing a lawsuit, it is crucial to weigh both the advantages and disadvantages of filing a lawsuit and going to trial. One of the main benefits of litigation is the potential to obtain more financial compensation than the insurance company had proposed. On the other hand, the following are some of the cons of litigation;
- Lengthy and costly process
- Uncertain outcome
- Emotional stress
Contact an Orlando Personal Injury Attorney
Our Orlando personal injury attorneys at The Pendas Law Firm can help you with your case. Contact us today to schedule a consultation.
The Pendas Law Firm also represents clients in the West Palm Beach, Fort Lauderdale, Fort Myers, Ocala, Naples, Melbourne, Bradenton, Daytona Beach, Miami, Tampa, and Jacksonville areas.
