• Understand the Implications of Rejection
• Why Settlements are Generally Preferred
• Initial Offer and Negotiation Process
• Moving to Trial
• Factors to Consider When Rejecting an Offer
• Factors Influencing Settlement Decisions
• Conclusion

Understand the Implications of Rejection

What Happens When You Reject an Insurance Settlement Offer? Declining an insurance option does not have to be the end of the negotiations. Sometimes it is the negotiation element itself. By declining the offer, one is perceived as having a higher opinion of the value of the claim than the company has previously inspected. This may result in further negotiations and may eventually allow you to make a better settlement amount. On the other hand, proceeding with an informed opinion, which is usually from a legal expert, is necessary in order to understand the full merits of your case and the chances of getting a better settlement.

Why Settlements are Generally Preferred

Settlements are generally preferred because they avoid the complexities, costs, and uncertainties of trials. Going to court can be a lengthy and expensive process, where the outcome is uncertain no matter how strong the case may appear. Furthermore, settling outside of court is advantageous due to its efficiency and privacy, preventing harmful information from becoming public. This allows both parties to conclude the matter more quickly, saving time and resources, and often results in a more amicable resolution.

Initial Offer and Negotiation Process

Turning down insurance company settlement is not the end of the journey but the beginning of a counter offer period. When you receive a settlement offer from an insurance company, it's crucial to remember that this initial offer is often just the starting point for negotiations:

• Initial Review: Examine the offer in detail. Make sure that it includes the necessary expenses, like the medical bills, lost earnings, and pain and suffering that you may have suffered from the accident.
• Consultation with an experienced Attorney: Before taking any action, you should seek to consult with a personal injury attorney who will give you legal advice along with the circumstances of your case.
• Counteroffer: It is not unusual for an insurance company or an insurance adjuster to return with a counter offer after the first rejection. Based on the back-and-forth negotiation, the parties should look to find the middle ground between the insurance company's first offer and the reasonable settlement that is satisfactory to both the insurance company and the party represented.
• Standing Firm: Some insurers may adopt a "take it or leave it" stance after making a settlement offer. While this tactic can be intimidating, it's essential to stand firm if the insurance company's offer doesn't meet your needs.
• Continued Negotiations: The negotiation process may involve several rounds of offers and counteroffers until both parties agree on a fair settlement amount. Personal injury lawyers can help guide you through this process.

Moving to Trial

• Preparation for Court:  The process of entering a trial is in essence gathering evidence, witness testimonies and legal arguments for the judge or jury.
• Time and Cost Considerations: While on one hand going to trial is important for realizing justice, on the other hand the time and cost factors need to be kept in mind. Even though the results could be a success, this process can be time and money consuming.

Consider, as every circumstance is different, and the rejection of an offer should be based on a thorough assessment of your personal position with the support of an expert lawyer.

Factors to Consider When Rejecting an Offer

• Legal Representation: The involvement of an experienced personal injury lawyer has a huge effect on the outcome of the negotiation, and the case in general.
• Understanding the Value of Your Claim: It is crucial to get clarity on the overall amount of your personal injury claim, taking into account all the damages and the future expenses you might face as a result of your injury or loss.
• Evidence Is Crucial: When we talk about the “strong evidence” which is used to support our claim about personal injury lawsuit and if the case is taken to trial, it becomes an essential part of the claim. This data includes medical records such as diagnostic imaging reports, expert testimony, and documentation of bills.
• Patience and Persistence: Negotiation often takes even more time.Patience and persistence are the parameters that would ensure the best settlement.

Factors Influencing Settlement Decisions

• Disagreement Over Liability: One of the primary factors that can influence settlement decisions is a disagreement over who is at fault for the incident. If there is significant dispute over liability, both parties may be less inclined to agree on settlement terms without further evidence or legal clarification.
• Extent of Injuries: Similarly, differing opinions on the severity of injuries and their impact on an individual's life can be a substantial point of contention. If the insurance company or defendant underestimates the extent of injuries or their long-term effects, it may lead to inadequate settlement offers that the victim might reject. Personal injury lawyers often advise accident victims to wait until they reach maximum medical improvement (MMI) before agreeing to a settlement. MMI is the stage at which an individual's injuries have reached a state where further recovery is unlikely.
• Concerns over Future Medical Costs: Another critical factor to consider when deciding whether to accept a settlement offer is the uncertainty surrounding future medical expenses. Often, injuries may require long-term care, rehabilitation, or future surgeries that are difficult to accurately estimate early on. In cases where future medical bills are expected to be significant, securing a settlement that comprehensively accounts for these expenses is crucial to ensure that the victim is not left bearing the financial burden.
• Dispute on Liability Assessment: In some cases, there may be a dispute over the assessment of liability. For instance, one party may argue that they were only partially responsible for the incident and should not bear full responsibility for the victim's damages. This disagreement can lead to protracted negotiations and potentially result in lower settlement offers.

• Availability of Evidence: A victims position can dramatically improve by the strong evidence they present which provides support to the settlement negotiations. This will give the victim the power to set a fairer settlement amount. The main challenge is that absence of conclusive proof or the existence of conflicting evidence concerning the incident makes it hard to reach an agreement on settlement. In such a situation, however, to obtain extra evidence through further examinations or experts' opinions may be required.
• Policy Limitations: Insurance policies commonly place limitations on the provision of coverages, and an area where this practice is evident is in the matter of certain kinds of damages. For instance, a law will define the degree of compensation for emotional distress or lost wages, there will be the limit. Here, the remuneration process must be carefully studied to ensure that the limits of the cover are enough and sometimes getting more may be traded for depending on the circumstances.
• Future Lost Wages:  Serious injuries are seen as one leading reason for a victim not being able to go on working for a long time which consequently the victim stops earning their income, and potential earning capacity. These cases usually entail difficulty in projecting future lost earnings and could result in the need for the testimony of vocational experts and/or economists. This issue is quite significant for individuals who earn a lot and the ones who lost a crucial ability to continue with their jobs due to permanent disabilities.

Conclusion

Accepting the initial insurance settlement offer should be a decision to make with all caution. It could mean more talks that link to the trial and ultimately a better result for you. Even so, making this decision should always be done with a good grasp of the consequences, as well as in consultation with a competent attorney. Keep in mind – you deserve to receive a fair offer for your suffering that insurance companies are sometimes willing to give anything short of just enough.

John Ball, Attorney at Law, has a large scope of knowledge about insurance settlement negotiations for many types of personal injury accidents. If you've been handed a low-ball settlement and are contemplating to decline it, feel free to contact us for a free consultation to determine the best recourse for you. Our McAllen Personal Injury Lawyer is devoted to fighting for our clients` rights and getting them just compensation they deserve. Do not allow an insurance company to take your money and not give you anything in return – let us work for you.