Do I Have the Right to Refuse the Insurance Company’s Offer?

December 10, 2024 | By Lewis Law
Do I Have the Right to Refuse the Insurance Company’s Offer?

The answer to the question "Do I have the right to refuse the insurance company's offer?" is a resounding—yes. Absolutely—you do, and in most cases, you should if it is the first offer. Unfortunately, liable insurance companies usually start by sending a low-ball offer, hoping the injured party will take their offer and run.

Legally unrepresented accident victims generally do not fight or negotiate for fair settlements. Insurers know this and send offers significantly lower than the claim’s worth to minimize their company's losses. Before you accept any settlement offer, consult an experienced personal injury lawyer for free. They can exhaustively evaluate your financial losses and other damages to ensure you never accept less than you deserve under the law.

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Why You Shouldn’t Settle Too Quickly

Insurance companies will try to rush injured parties to settle to minimize company payouts using various tactics. However, never settle too quickly for many reasons, such as:

  • Unknown Severity of Injuries: You may not know the full extent of your injuries when the liable insurer attempts to get you to settle. Accepting an offer affords the potential risk of being responsible for uncompensated medical expenses and other damages. However, insurers may call within hours of your accident with a settlement offer.
  • Potential for Future Complications: If your injuries worsen over time, settling too quickly prevents you from securing compensation for your additional healthcare needs and future lost income. 
  • Insurance Company Tactics: An insurance claim adjuster minimizes a company's financial losses by denying and underpaying as many claims as possible. Fair settlements generally require several rounds of negotiations. 

Accepting a settlement offer before reaching your maximum medical improvement (MMI) is a big mistake. The MMI occurs when you've reached a treatment plateau—a state in your condition or disability that cannot be improved further. It’s imperative to wait until your recovery is complete before accepting a settlement.

What Happens If You Refuse the Insurance Company’s Offer? 

A common misconception is that refusing the insurance company’s offer may lead to a lesser offer later or no settlement at all. In reality, this is not usually how insurance negotiations work.

If you refuse their settlement offer, the insurance company will usually counter with another offer or confirm the offer sent is their final offer. Your lawyer will advise whether they believe you should accept an offer or hold out for more. However, the final decision to accept or reject is ultimately yours.

Related article: When to Hire a Personal Injury Lawyer

Dealing with Medical Bills Before Settling

A significant reason accident victims may rush to settle is because of the overwhelming amount of medical and rehabilitation bills incurred from their injuries. However, many viable options exist for dealing with medical bills before settling, including health insurance or MedPay coverage.

Health Insurance

Private or employer insurance should cover your medical treatment, regardless of the fault of the accident. While you may be responsible for copays and deductibles, your attorney can include these out-of-pocket costs in your settlement demand letter.

Some healthcare professionals are willing to treat you on a lien basis—meaning they agree to wait on payment until you receive compensation. If those services are relevant to your current medical needs, ask your lawyer for referrals to healthcare providers who will work with you to get better first and seek payment later.

Medical Payments

If your policy includes Medical Payments/MedPay coverage, you can use it to cover healthcare costs. MedPay is an optional coverage offered in most states that injured parties may utilize after an accident while waiting on settlements. MedPay covers:

  • Ambulance transport from the accident scene
  • Emergency medical services and hospital stays
  • Surgeries and post-op care
  • Primary care evaluations and follow-up care
  • Nursing services
  • Dental expenses
  • Health insurance copays and deductibles
  • Funeral costs 

Using your health insurance or MedPay coverage to pay for medical and rehabilitation costs allows you to focus on your recovery instead of rushing to settle. You have the right to refuse the insurance company's offer and wait until you've hit your MMI before settling. Your attorney can help clarify the terms of your health and insurance auto policies and how your insurers will seek reimbursement once your case is resolved.

Your personal injury attorney can often speak with your medical providers, advising them of the strength of your case so they might continue treatment in anticipation of payment from your settlement. Your lawyer might also negotiate medical liens and bills after your case settles to reduce your expenses as much as possible.

How Will a Personal Injury Lawyer Help Maximize Your Settlement?

A knowledgeable and experienced personal injury attorney will do everything possible to maximize your final compensation. These services are invaluable to securing substantial settlements:

  • Insurance Company Protection: Once you retain an attorney, liable insurers are forbidden from further contacting or harassing you. Your lawyer handles all communications and acts as a barrier between you and their pressure to settle too quickly—amongst other things. Insurers often employ bad-faith tactics you can't fall victim to because you retain legal counsel, such as refusing to pay a valid claim or making threatening statements.
  • Expert Consultations: To establish liability, prove negligence, and seek maximum damages, your personal injury lawyer will consult experts relevant to your accident type. Their network of expert consultants and witnesses may include healthcare professionals, economists, and highway safety experts.
  • Comprehensive Valuation of Damages: Your attorney will examine all economic and non-economic damages from your accident and injuries. Standard damages include medical bills, vehicle repairs or replacement, lost income, property damages, and pain and suffering. Pain and suffering may entail chronic pain, mental anguish, psychological trauma, decreased quality of life, and permanent impairment.
  • Demand and Negotiations: After valuing your claim, your attorney will draft and send a demand letter to liable insurance companies. The letter generally begins negotiations, which may involve several rounds before agreeing on terms. 

Related article: How to Choose the Right Personal Injury Lawyer for You

The sooner you secure legal representation, the better. Schedule a free consultation with your local personal injury attorney to discuss your right to refuse the insurance company’s offer and discover a plan to recover substantial compensation.

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