If you've been injured due to someone else's negligence and are seeking compensation through a personal injury claim, at some point, the insurance company may offer you a settlement. What happens if you refuse the settlement offer? Will it help or hurt your case? Is it worth holding out for more money? These are important questions to consider. While every case is unique, refusing a settlement offer can be a strategic move that may ultimately result in higher compensation - but it also comes with risks. Here, we'll break down what typically happens when an injured person refuses an initial settlement offer and discuss the potential pros and cons of doing so. Of course, it's always best to consult with an experienced personal injury lawyer about your situation before making any decisions.
The Initial Settlement Offer
After you've suffered an injury and filed a personal injury claim against the at-fault party's insurance, the insurance adjuster assigned to your case will investigate what happened. They'll look at the police report, your medical records and bills, documented evidence of lost income, and any other information relevant to your claim. Based on their assessment, the adjuster will usually make an initial settlement offer. In most cases, this first offer will be on the low side - sometimes much lower than what your claim is worth. Insurance companies are for-profit businesses, so their goal is to pay out as little as possible on claims. Lowball offers are a common tactic used by insurers to see if the injured person will accept a quick, cheap settlement just to resolve their claim. Adjusters know that many people, especially those who try to handle their claim on their own without an attorney, don't have a clear idea of what their case is really worth.The Decision to Accept or Refuse
When you receive a settlement offer, you have a choice to make - accept the offer and resolve your claim now, or refuse it and continue negotiating for a higher amount. It can be a difficult decision, especially if you're eager to get your money and move on with your life. However, it's important not to let impatience cloud your judgment. It's almost always worth refusing the first settlement offer, especially if it seems very low compared to the extent of your injuries and losses. Once you accept an offer, your claim is over - you can't go back and ask for more money later if you realize the settlement wasn't sufficient. By saying no to a lowball offer, you tell the insurance company that you know your claim is worth more and that you're willing to keep fighting for fair compensation. It pressures them to increase their offer to settle the claim without a lawsuit. Insurers often raise their offer significantly after you refuse the initial amount. However, refusing a settlement offer does extend the life of your claim and delays when you receive compensation. If you have pressing medical bills or other expenses, this is a factor to consider. You'll also need to invest more time and energy into your case, including providing more documentation of your damages. Additionally, there's always an inherent risk to refusing a guaranteed settlement - if you take your case to trial, there's a chance you could lose and end up with no compensation at all. It's a gamble you need to be comfortable with. Your personal injury lawyer can advise you on the strength of your case and whether the settlement offer seems reasonable, given the specific facts involved.The Counteroffer
In most cases, refusing the initial settlement offer isn't the end of negotiations - it's just the beginning. The next step is usually for you (or, more likely, your personal injury lawyer) to make a counteroffer to the insurance company. Your counteroffer should be based on a careful assessment of your damages, both economic (medical bills, lost income, etc.) and non-economic (pain and suffering). You must provide clear evidence to justify the amount you're seeking. Again, this is where having an experienced attorney is extremely valuable, as they can ensure your counteroffer is as strong and well-supported as possible. One common tactic in formulating your demand is to ask for more than you think your claim is actually worth. This gives you room to negotiate downward without going below the minimum amount you're willing to accept. Of course, you don't want to make your demand so high that the insurance adjuster considers you unreasonable and unwilling to compromise. What happens next will depend on how the insurance company responds to your counteroffer. Sometimes, the adjuster may agree to your demand or make a new offer close to that amount. Then, you'll have another choice to make about whether to accept or keep negotiating. More commonly, the insurance company will respond with another offer higher than their initial one but lower than your demand. This back-and-forth process can continue for several rounds as you and the insurer work to find a number you both consider fair. Having a skilled negotiator like a personal injury lawyer on your side can be extremely helpful for maximizing your settlement during this stage.Filing a Lawsuit
If you and the insurance company ultimately can't agree on a settlement amount, your next option for seeking compensation is to file a personal injury lawsuit. This is a significant escalation of your claim and shouldn't be done lightly. However, in some cases, it's necessary to get the money you deserve. Filing a suit opens up a phase of your case called "litigation." In contrast to the informal settlement negotiations with the insurance adjuster, litigation involves a formal legal process for resolving your claim in the court system. An experienced personal injury lawyer is essential for navigating this process, as it has strict rules and procedures you must follow. After you file your lawsuit, the defendant (the person you're suing) will have the opportunity to file a response. Then, the "discovery" stage begins, where both sides exchange evidence and information about the case. This can include written questions (interrogatories), requesting documents, and deposing witnesses under oath. The discovery process can take months and reveal important details about the strength of your case. What you and your lawyer learn may lead you to adjust your settlement demand up or down. In some cases, the evidence uncovered is enough to convince the insurance company to raise their offer significantly to avoid going to trial.Mediation and Settlement
Even after a lawsuit is filed, settlement negotiations typically continue. Most personal injury lawsuits are settled before trial - it's relatively rare for a case to make it to a jury verdict. As the trial date approaches, the judge may order both sides to attend mediation. This is a formal settlement conference conducted by a professional third-party mediator. The mediator's role is to listen to both sides and try to help them compromise on a settlement amount. While mediators can't force either party to settle, they often provide a helpful neutral perspective. Sometimes, the focus and pressure of the mediation process are enough to get the insurance company to finally make a fair settlement offer. If so, you and your lawyer will carefully review the offer terms before you decide whether to accept. If you agree to a settlement during litigation, your lawyer will inform the court, and your lawsuit will be dismissed.Going to Trial
If your case still doesn't settle after mediation, the final step is to take it to trial and let a jury decide how much compensation you'll receive, if any. By the time the trial starts, many months or even years may have passed since your initial settlement negotiations. At the trial, your lawyer will present your case and argue why you deserve substantial compensation for your injuries and damages. The defendant will present their case too, likely arguing that they weren't at fault or that your damages aren't as high as you claim. Then, the jury will decide the outcome. Going to trial can be a long, stressful, expensive, and risky process. There's no guarantee that the jury will rule in your favor or award you as much money as you want. In some cases, the jury might award you less than the insurance company's last settlement offer or even nothing at all. However, trials can also sometimes result in very high compensation amounts, especially if you have severe injuries, strong evidence, and a skilled lawyer. If the insurance company has been unreasonable during settlement talks, taking your case to a jury may be the best way to get fair compensation.The Role of a Personal Injury Lawyer
As you can see, there are many factors to consider when deciding whether to accept or refuse a settlement offer. The best way to protect your rights and maximize your potential compensation is to have an experienced personal injury lawyer on your side. A good personal injury lawyer can thoroughly investigate your case and gather evidence to build a strong claim for damages. They can handle all communications and negotiations with the insurance company, so you don't have to worry about saying the wrong thing or agreeing to an unfairly low offer. If the insurance company refuses to make a reasonable settlement offer, a personal injury lawyer can file a lawsuit and fight for your rights at trial. Having a skilled litigator in your corner can make a huge difference in the outcome of your case. Perhaps most importantly, an experienced personal injury lawyer can give you an objective and knowledgeable assessment of any settlement offers you receive. They can help you understand the potential strengths and weaknesses of your case and estimate how much compensation you might be able to get if you refuse the offer and keep fighting. While it's ultimately your decision whether to accept a settlement, a personal injury lawyer can give you the information and advice you need to make the best choice for your individual circumstances. Without the guidance of an attorney, you can end up settling for far less than your claim is really worth.How to Choose a Personal Injury Lawyer
Choosing the right personal injury lawyer is an important decision that can significantly impact the success of your case. So, how do you find a good attorney to represent you? One of the best ways is to ask for recommendations from family and friends who have hired an injury lawyer before. If someone you trust had a good experience with a personal injury attorney, that's a strong endorsement to consider. However, every case is different, so it's still important to do your own research into any potential lawyer. Check their website and read online reviews from previous clients to get a sense of their experience and track record. Most personal injury lawyers offer free consultations, so take advantage of that to personally interview attorneys before deciding who to hire. Ask how many cases like yours they've handled, how often they take cases to trial, and what settlement and verdict results they've achieved. Communication is key in a lawyer-client relationship, so also pay attention to how clearly the personal injury attorney explains things and how responsive they are to your questions. You want a lawyer who will keep you informed and involved throughout your case. Finally, be wary of any personal injury lawyer who pressures you to accept a quick settlement from the insurance company. A good attorney will take the time to fully evaluate your damages and advise you on when it makes sense to settle versus keep fighting for more compensation.Reach Out to a Reputable Personal Injury Lawyer
Dealing with insurance companies after an injury can be stressful, confusing, and challenging. It's common to feel pressured to accept the first settlement offer to get your money as soon as possible. However, that initial offer is often far less than your claim is truly worth. That's why it's so valuable to have an experienced personal injury lawyer on your side. A skilled personal injury attorney can deal with the insurance company on your behalf and advise you on whether their settlement offers are fair. If not, they can negotiate aggressively for a higher amount or even file a lawsuit and take your case to trial. So, if you've suffered a severe injury, don't try to handle the insurance claim process on your own. Reach out to a reputable personal injury lawyer for a free consultation. With their knowledge and advocacy, you can make an informed decision about whether to settle your claim or keep fighting for the full compensation you deserve.