Yes, you can reject a personal injury settlement offer if it does not fairly reflect your losses. In many cases, the first offer is only the start of negotiations, not the final amount available in the claim. A San Luis Obispo personal injury lawyer can help you review the offer and decide what to do next.
What happens if you reject a settlement offer from an insurance company?
It’s common for an insurance company’s first offer to be lower than what an injured person may ultimately accept. Settlement negotiations often involve back-and-forth communication before both sides reach a number they are willing to resolve the claim for.
When you reject an insurance settlement, negotiations may continue, and the insurance company may respond with a counteroffer or request more information.
Why do insurance companies make low initial settlement offers?
The primary goal of the insurance adjuster is to save money. They often do this by starting low and diminishing every part of your claim that they can. They may say that your injuries are not as bad as you claim, or that some of your treatment was unnecessary or unrelated to injuries from the claim.
This is all meant to protect their bottom line, and in many cases, the initial offer is lower than what may later be discussed through continued review and negotiation.
When does rejecting a settlement offer make sense?
There are many times when rejecting a settlement offer will make sense. The most obvious of which is when the offer will not cover your financial losses. If your injury has cost you $25,000 in physical losses, and they are only offering $10,000, it would not make sense to accept unless you have no other option. The amount they offer should also consider anticipated future medical costs if you have a long-term or permanent injury.
It may also make sense to reject an offer if they fail to account for your non-economic losses, like pain and suffering. The purpose of filing a personal injury lawsuit is to try to get you functioning the way you were before the accident. Money can’t erase the accident, but it can help you maintain your previous quality of life, and you deserve to recover the full value of your claim.
Is there a risk in rejecting an insurance settlement?
The biggest risk of rejecting an insurance settlement offer is that they will refuse to increase it anymore or, in rare cases, withdraw it completely.
Some of the more common risks are that it will take more time and that you won’t have the compensation you need. It can lead to greater financial uncertainty and higher costs if you move toward litigation.
How long do you have to decide whether to accept a settlement offer in California?
In most cases, the state of California provides a 2-year statute of limitations when it comes to finding a resolution out of court or determining to proceed with litigation. This means you have 2 years to go through the negotiation process before deciding to file a lawsuit.
A settlement offer may also come with its own response deadline from the insurance company. Even so, you should be careful about making a decision based only on that deadline without understanding how it could affect your rights.
Should you talk to a personal injury lawyer before rejecting a settlement offer?
It’s a good idea to speak with an attorney before responding to the insurance company, especially if you have received a settlement offer. An experienced personal injury lawyer can help you understand whether the offer fairly reflects your losses and whether rejecting it makes sense. Many personal injury cases settle without going to court, but the outcome often depends on careful review and negotiation.
Speak with a San Luis Obispo personal injury lawyer about your settlement offer
If you are working your way through the negotiation process, or you know it’s coming after an injury. Don’t hesitate to call Ernst Law Group to schedule a free case consultation and determine your options. You can contact us online or call us at (805) 541-0300.