Too many claimants make the mistake of believing that an insurance settlement offer is a one-and-done deal; that if they reject the first offer, the claim will end, and no compensation will be offered. In reality, working with a Minneapolis car accident lawyer to reject the first settlement offer is often in a claimant’s best interest so that negotiations can commence and fair compensation can be recovered.
You Have the Right to Reject an Offer
It’s important to know that, as someone who has filed an insurance claim, you always have the right to reject a settlement offer. Even if an insurance claims adjuster uses language like “best” or “final” offer to pressure you, you have the right to reject the offer and continue seeking a higher amount through additional negotiations. Rejecting an insurance settlement offer is a normal and common practice.
Negotiations Will Commence
Your refusal to accept a settlement offer and sign a release of liability waiver will not end your claim. Negotiations will continue between you (or your personal injury lawyer) and the insurance company. You can submit a counteroffer in the amount you believe you deserve based on the extent of your losses and injuries.
The insurance company will then counter your request with its own offer, and so on. Insurance settlement negotiations will continue until both parties agree on a fair and reasonable amount to resolve the legal dispute. The amount of time this takes depends on the case and the goals of both parties.
Internal Reviews
If a settlement cannot be reached after a few back-and-forth negotiations, the insurance company may conduct an internal review of your claim. It will assign a different claims adjuster to reevaluate your medical records, evidence and documentation. This may result in a higher settlement offer if the insurer finds that the increase is justified.
A Trial May Be Necessary
The majority of personal injury claims that are filed with insurance companies reach settlements. Insurance providers generally want to avoid the costs and unpredictability of a trial. However, if an insurance carrier is refusing to make a reasonable settlement offer or has rejected a claim without cause, the case may need to proceed to trial.
If you need to file a lawsuit instead of accepting a settlement, contact an attorney if you have not done so already. The court process can be complex, and you may be overpowered by a large insurance company. An attorney can allow you to balance the scales and fight for the financial recovery you deserve.
When Should You Reject an Insurance Settlement Offer?
A common tactic used by insurance companies to protect their profitability is to offer low initial settlements in the hopes that a claimant will accept without attempting to negotiate. This is why it is not uncommon for first offers to be inadequate, and why claimants are often recommended to reject the first offer and negotiate.
Whether or not it is right for you to reject a settlement offer depends on the circumstances. Rejecting an insurance offer does not guarantee that the insurance company will offer a higher amount. It may stick to its initial offer even after you submit a counteroffer. In these scenarios, advice and representation from a qualified attorney may be necessary.
You can improve your chances of achieving a fair settlement through negotiations, mediation or arbitration by hiring an attorney to represent you. If you believe your case has to go to court for maximum compensation, it is especially important to protect yourself with legal representation. Your personal injury lawyer in Minneapolis can handle litigation in a way that improves your chances of achieving a favorable outcome.