When Should You Reject an Insurance Settlement Offer?
If you’ve been injured in an accident, the insurance company may offer you a settlement quickly. At first glance, this might seem like good news. But before you accept, ask yourself: is this a fair offer, or is the insurance company trying to pay less than what you deserve? Many people make the mistake of accepting lowball settlements without realizing they have the right to negotiate for a better deal.
Understanding the red flags in settlement offers can help you make the right decision and ensure you’re getting the compensation you actually need.
The First Offer Is Usually Too Low
Insurance companies are businesses—they focus on paying out as little as possible. If you receive an offer within days of your accident, chances are it’s not enough to cover your long-term medical costs, lost wages, and pain and suffering.
Accepting an offer too soon can leave you with out-of-pocket expenses later. If your injuries require ongoing treatment or you miss more work than expected, you won’t be able to go back and ask for more money. Once you accept a settlement, the case is closed.
The Offer Doesn’t Cover All Medical Expenses
One of the biggest mistakes people make is not calculating future medical costs before accepting a settlement. If you’re still receiving treatment, the insurance company should cover all related expenses, including physical therapy, follow-up visits, and medication.
Check if the offer includes compensation for future medical expenses. If not, that’s a sign that the insurance company is undervaluing your claim. According to NOLO, many insurance adjusters initially offer less than what a claim is worth, expecting that the victim won’t challenge it.
Pain and Suffering Are Not Considered
Compensation isn’t just about hospital bills and lost wages—you’re also entitled to pain and suffering damages. This includes:
- Physical pain and long-term discomfort
- Emotional distress, anxiety, or PTSD caused by the accident
- Reduced quality of life or inability to return to normal activities
If the settlement offer doesn’t include pain and suffering, it’s likely a lowball offer. A personal injury lawyer can calculate the real value of your pain and suffering using industry-standard methods, such as the multiplier method or per diem method.
The Adjuster Pressures You to Accept Quickly
If an insurance adjuster says the offer is only available for a limited time, they are likely trying to pressure you into accepting less than you deserve. A fair settlement should be based on evidence, not deadlines.
Insurance companies know that victims often feel financial stress after an accident, so they rush to settle before the full extent of injuries is known. This is why consulting a lawyer before accepting any offer is critical. McCray Law Firm PLLC offers free consultations to review your case and make sure you’re not getting shortchanged.
They Blame You for the Accident
Texas follows comparative negligence laws (Texas Civil Practice & Remedies Code § 33.001). This means that if the insurance company can place some of the blame on you, they can reduce your settlement amount.
If the insurer is incorrectly blaming you for part of the accident, that’s a sign they are trying to lower your compensation. A lawyer can gather evidence, such as traffic camera footage, witness statements, and police reports, to challenge their claims and fight for the compensation you deserve.
Negotiating Can Lead to a Better Offer
Most insurance companies expect negotiations. If you reject their first offer, they will likely come back with a better one. This is because they know that injury victims who push back often win higher settlements.
An experienced attorney knows how to calculate the full value of your claim, including:
- Medical expenses (current and future)
- Lost wages and reduced earning capacity
- Pain and suffering damages
- Property damage
With proper legal support, you can reject unfair offers and demand the settlement you actually deserve.
You Deserve Fair Compensation—Don’t Settle Too Soon
Insurance companies are not on your side. Their goal is to settle quickly and for the lowest amount possible. Before accepting any offer, make sure it fully covers all your losses, including future expenses and non-economic damages.
If you’ve received a settlement offer, don’t accept it without legal advice. Contact McCray Law Firm PLLC today for a free consultation. We’ll review your offer and help you negotiate the maximum compensation you deserve.
FAQ: When Should You Reject an Insurance Settlement Offer?
1. Can I negotiate a higher settlement after rejecting the first offer?
Yes. The first offer is usually lower than what you deserve. Insurance companies expect negotiations, and rejecting the initial offer often leads to a better settlement. A personal injury lawyer can help you calculate the true value of your claim and fight for fair compensation.
2. What happens if I reject the insurance company’s offer?
Rejecting an offer doesn’t mean you lose your claim. Instead, you or your lawyer can submit a counteroffer with evidence to support your demand. If negotiations fail, you may have the option to file a lawsuit to seek fair compensation.
3. How do I know if an insurance offer is fair?
A fair settlement should cover all current and future medical expenses, lost wages, pain and suffering, and any long-term effects of your injuries. If the offer only covers basic medical bills or seems rushed, it may not be fair. Consulting with a personal injury lawyer ensures you’re not settling for less.
4. Will rejecting an offer delay my settlement?
Yes, but it may be worth it. While settling quickly can get you money sooner, it may not be enough to cover all your losses. Negotiating for a better offer takes time, but it ensures you receive the compensation you actually need.
5. What if the insurance company refuses to increase the offer?
If negotiations don’t lead to a fair settlement, your lawyer may recommend filing a personal injury lawsuit. Many cases settle before trial, but being prepared to take legal action increases your leverage in negotiations.
Need help evaluating your settlement offer? Contact McCray Law Firm PLLC for a free consultation today!