When you file an insurance claim, it is expected that the resulting settlement will fairly compensate you for your damages. However, what happens if the insurance company’s offer falls short of your expectations? Are you obligated to accept it, or do you have the right to say no?
You are not under an obligation to accept a settlement that does not sufficiently cover your needs. In many cases, the initial offer is intentionally low and designed to test your willingness to settle quickly. By refusing such an offer, you can be setting a path toward securing fair compensation. It’s advisable to take your time and proceed thoughtfully. That is why you need to work with a personal injury lawyer in McLean, VA to weigh the offer against your damages and advise you on the most prudent course of action.
The Basics of Insurance Settlements
In most cases, after you file a claim, whether for a car accident, property damage, or personal injury, an adjuster assesses the damages and losses you incurred. Then, based on their findings, they issue a settlement offer to cover your losses. Depending on the nature of your claim, an insurance offer may include compensation for various damages, such as medical expenses, property repairs, lost income, or pain and suffering.
Therefore, an insurance settlement is a financial agreement between you and the insurance company to resolve a claim. When you accept this offer, you obtain monetary resources to close the claim. That is why, before accepting any settlement offer, it’s wise to assess whether it meets your needs now and in the future. To make decisions that protect your interests, involve your personal injury lawyer to help you obtain the desired outcome from your personal injury claim.
Reasons to Refuse an Insurance Company’s Offer
There are several compelling reasons to decline an insurance company’s offer if it does not align with your needs. It is important to exercise caution and obtain the right legal advice before exercising your right to refuse the insurance company’s offer. Here are some situations where refusal may be the right choice:
- There Are Bad Faith Practices: If the insurer delays communication, withholds information, or misrepresents policy terms, they may be acting in bad faith. This behavior can signal that the company is not negotiating honestly or fairly. It is critical to document these actions and consult a personal injury lawyer to preserve your rights and hold the insurer accountable.
- The Offer Is Too Low: Many initial offers are designed to settle claims quickly and cheaply. These first offers may not reflect the true extent of your losses. If the offer fails to cover your current and future expenses, refusing it is not only reasonable but necessary to preserve your financial well-being.
- You’re Still Undergoing Treatment: If your medical treatment is ongoing, you may not yet understand the full impact of your injuries. Accepting an offer prematurely could leave you responsible for medical expenses down the line. Refusing the offer allows time to reach maximum medical improvement and obtain a complete assessment of your health and future care needs.
- The Full Extent of Your Injuries Is Unknown: Injuries, particularly those involving the brain, spine, or internal organs, can develop complications over time. A hasty settlement may not account for these issues. Refusing the offer gives you the flexibility to wait for a clearer picture of your long-term condition.
- You Haven’t Calculated All Your Damages: Subjective losses such as diminished quality of life may easily be overlooked in quick settlements. A thorough calculation of both economic and non-economic losses ensures that any settlement you consider is comprehensive and just. Make sure to work with a lawyer to help assess these damages.
Refusing an offer in these scenarios protects your right to fair compensation. At this stage, you need to exercise patience and careful evaluation. Instead of rushing to accept a settlement that may leave you vulnerable, it is highly advisable to call your personal injury lawyer to review your case and advise you on the next steps.
What To Do After Refusing an Insurance Company Offer
Once you’ve decided to refuse an offer, it is just the beginning. The insurance company is waiting to know your reasons for refusal, so you need to take strategic action to strengthen your position. Here are the steps to take after rejecting a settlement offer:
- Discuss the Offer With Your Lawyer: Your attorney can evaluate why the offer was unreasonable and explain your legal options. They can also handle all communications with the insurer to avoid further pressure tactics.
- Make a Counteroffer: Your lawyer may present a counteroffer based on the true value of your claim. This shows the insurance company you are serious about receiving fair compensation, not simply accepting their first offer.
- Engage in Negotiations: Negotiation is a key part of reaching a settlement. With legal counsel, your injury attorney can engage in informed and assertive negotiation, which can greatly improve the likelihood of a satisfactory outcome.
- Sending a Demand Letter: If negotiations stall, your attorney might draft a demand letter outlining the basis of your claim and the amount you seek. This formal document often encourages insurers to respond more reasonably.
- Prepare for Legal Action: If a fair settlement is not realized through negotiations, it may be necessary to file a lawsuit. Although this can extend the resolution timeline, it may also lead to a more favorable result. A lawyer will guide you through this process, from filing and pre-trial negotiations to discovery and potential court proceedings.
Regardless of how unfair a settlement offer may seem, it is important to seek the counsel of an attorney. They can assess the offer’s fairness against your needs and ensure you make the most of your decision to refuse the offer.
Call Your Personal Injury Lawyer Today
Have you received a settlement offer that seems inadequate, or are you uncertain about what steps to take? You have the right to refuse an insurance company’s offer, which is a powerful tool in the pursuit of fair compensation. However, it is unlikely that you can take on the insurance company alone and succeed. An attorney will make counteroffers and argue on your behalf for the best available settlement. Call a personal injury attorney today to evaluate your options.