October 31, 2024

What to Expect After Rejecting an Insurance Settlement Offer: Your Next Steps

You might have hoped to avoid bringing your case to trial by recovering a settlement through the insurance company alone. However, it is more common than you might think for insurers to make insultingly low settlement offers or refuse to pay out on claims fairly. Too many claimants end up being taken advantage of because they may feel pressured to accept the insurance company’s settlement offer.

Ultimately, the choice is up to you whether you want to accept the insurance company’s offer or reject it and continue negotiating. If you make the brave decision to reject an insurance settlement offer you know is insufficient, with help from your dedicated personal injury attorney from Callender Bowlin, you can hold the insurance company accountable to their obligations and recover maximum compensation for your damages. Here is more about what your next steps will be after rejecting an insurance settlement offer.

Why Reject an Insurance Settlement Offer?

There are many reasons why it may be in your best interest to reject an insurance company’s initial settlement offer. Most often, claimants will reject insurance settlement offers because it does not sufficiently cover the value of their damages. If the insurance company is not paying out on the total value of your losses, and the policyholder has enough insurance coverage to meet the value of the claim, the insurance company should be offering a reasonable settlement.

You might reject an insurance settlement offer if it does not provide compensation for your medical expenses, repair or replacement of property damages, loss of income, or pain and suffering. You could also decide to reject the insurance company’s offer if it does not provide compensation for any future medical expenses you may incur, especially if you are struggling with a permanent disability that likely requires ongoing treatment or care.

However, these are not the only reasons to reject an insurance company’s settlement offer. Maybe the insurance company made you a settlement offer before you recognized the full extent of your damages and losses, for example. Or perhaps you are hoping to preserve your self-respect and dignity by refusing to accept less than your claim is worth. In either case, a bad-faith insurance attorney may be able to help you renegotiate for a more reasonable settlement offer.

Steps to Take After Rejection

Once you decide to reject the insurance company’s offer, you should take the following steps:

1. Inform the insurance company in writing via a formal demand letter.
2. Explain your reason for rejecting the insurance company’s offer.
3. Include any additional evidence to support your reasons for rejecting the offer.
4. Include a counteroffer by explaining the various ways your life has been and may continue to be affected by your damages.
5. Be prepared to renegotiate settlement terms, as the insurance company is unlikely to accept your initial counteroffer.
6. Prepare to file a lawsuit against the insurance company if they fail to meet the terms you need to rebuild your life.

In all communications with the insurer, you should avoid the use of inflammatory language, and be concise and professional. While you should remain flexible on settlement terms, you should never feel pressure to settle for less than your claim is worth. Although litigation means it will take longer for you to receive your settlement funds, if going to court is the best way to ensure the insurance provider is held accountable for their financial obligations, we may recommend that it is in your best interest to proceed with a lawsuit.

Tips on Negotiating with Insurance Companies

When negotiating with the insurance company, you may be able to maximize your settlement by:

• Keeping all communications exchanges and offers in writing.
• Having your property damage attorney handle all negotiations with the insurance adjuster.
• Refusing to accept the insurance company’s initial settlement offer.
• Understanding the true value of your claim, including both economic and non-economic damages, as described by 32 CFR 45.9 and 32 CFR 45.10 respectively.
• Forcing the insurance adjuster to justify the settlement offer.
• Never admitting fault for your damages.

Insurance Settlement Offer Rejection FAQ

Will rejecting a settlement offer delay my payout?

Yes, if you reject the insurance company’s settlement offer, your payout will likely be delayed. A rejection means negotiations will continue, which could take weeks or longer. While there may be potential delays, it may be worth your while to remain firm in your decision to refuse less than the value of your damages.

Why do insurance companies drag out settlements?

There are a number of reasons insurance companies may drag out settlements. Sometimes, they try to delay the process because they believe it will encourage you to accept a lower offer. They know you need money now, so they attempt to manipulate you into accepting far less than your damages are worth. However, some insurance companies delay claims because they need additional time to investigate and gather evidence to determine whether your claim should be approved or denied.

What is an acceptable settlement offer?

An acceptable settlement offer will include compensation for every single way your life has been affected by your damages. However, the insurance settlement will only pay out on specific types of covered losses. The insurance company is only held accountable for the covered losses as described in the policy terms.

In many cases, you may be able to recover compensation for property losses, pain and suffering, loss of income, medical bills, and other financial losses. However, there are many types of non-economic damages the insurance company does not typically provide coverage for. If this is the case, you may need to move forward with the lawsuit against the liable party if you are going to get your costs covered in full.

Meet With a Reputable Personal Injury Lawyer for Help Today

Insurance companies do not prioritize claimants’ needs. The insurance company loses money by paying out on your claim, so you can expect them to take steps to reduce settlements wherever possible. If we believe the insurer is attempting to take advantage of you or is handling your claim unfairly, your bad-faith insurance attorney from Callender Bowlin can take action.

Sometimes, the simple threat of bringing your case to court will be enough to show the insurance company how seriously you are taking your claim. You do not need to accept a lowball insurance offer. You can reject the insurance company’s settlement and demand the fair compensation you deserve with a high-powered legal representative working for you. Fill out our quick contact form or call our office to schedule your free consultation as soon as today.