What Happens If a Settlement Offer Is Rejected?
Rejecting a settlement offer after a personal injury can feel overwhelming, especially when you’re dealing with medical expenses, lost wages, and stress from the claims process. But it’s important to understand that rejecting a settlement doesn’t end your case—it can be a necessary step toward securing fair compensation.
If you’ve been injured in an accident and are navigating a personal injury claim, understanding the negotiation process and your legal options is crucial. Whether you’re facing pressure from an insurance adjuster or feeling unsure about the insurance company’s first offer, this guide will explain what happens when you reject a settlement offer—and how to move forward.
Why You Might Reject an Insurance Settlement
Insurance companies aim to protect their bottom line. That often means offering an initial settlement that may not fully account for your medical treatment, lost income, or future medical treatments. Rejecting a settlement offer isn’t about being combative—it’s about pursuing a fair resolution.
You might reject an insurance settlement for several reasons:
- It doesn’t cover ongoing medical expenses
- It fails to account for the full extent of your injuries
- It undervalues pain and suffering
- It doesn’t compensate for lost wages or future medical care
- It was presented before you reached maximum medical improvement
The goal isn’t to reject just for the sake of it—it’s to continue negotiating toward a mutually acceptable agreement that reflects your actual losses.
What Happens When You Reject an Insurance Settlement Offer?
Rejecting a settlement offer sets several things in motion, but it doesn’t mean you’ll automatically go to court. Instead, it reopens the door for further negotiations with the insurance company. In some cases, alternative dispute resolution methods such as mediation or arbitration may help the parties find a fair settlement without litigation.
Here’s what typically happens after rejecting a settlement:
- You or your personal injury attorney submit a formal demand letter outlining why the offer was unacceptable and what compensation is appropriate.
- The insurance company may return with a counteroffer or request additional documentation such as medical records or evidence of lost wages.
- If negotiations stall, legal action may be initiated in the form of a personal injury lawsuit.
In many personal injury cases, settlement negotiations can continue even after a lawsuit is filed. This ongoing negotiation process may eventually result in an equitable settlement that avoids trial.
The Role of a Personal Injury Lawyer in Settlement Negotiations
Navigating a rejected settlement is easier with the support of an experienced personal injury lawyer. Insurance companies often use tactics to minimize payouts, hoping claimants will accept the initial offer out of urgency or frustration. An experienced personal injury attorney understands how to handle these situations, negotiate effectively, and build a strong insurance claim that reflects your needs.
A personal injury firm can help by:
- Analyzing the insurance settlement offer and explaining whether it constitutes fair compensation
- Estimating future medical costs and lost wages
- Gathering and presenting medical records, evidence, and testimony
- Managing communication with the insurance adjuster
- Guiding you through the legal options available if negotiations fail
Working with an experienced attorney helps level the playing field when dealing with powerful insurance companies.
Legal Options When Settlement Negotiations Fail
If you and the insurance company cannot reach a mutually acceptable agreement, filing a personal injury lawsuit may be the next step. During litigation, both parties participate in the discovery phase, where additional evidence is exchanged. Often, lawsuits lead to renewed settlement negotiations once the insurer sees the strength of the case.
In rare situations, if even alternative dispute resolution fails, your case may proceed to trial, where a judge or jury will decide on a reasonable settlement.
While going to court may seem daunting, sometimes it’s necessary to secure the compensation you deserve—especially if the insurance company refuses to cooperate or accept liability.
Rejecting a Lowball Settlement Isn’t Risky—It’s Strategic
Many people worry that rejecting a settlement offer could jeopardize their claim. In reality, rejecting a lowball settlement offer shows you’re committed to receiving fair compensation. As long as your claim is supported by evidence, rejecting a low offer and pursuing further negotiations is a smart strategy.
You have every right to:
- Request a higher payout
- Continue negotiating
- Explore alternative dispute resolution
- File a lawsuit if needed
Every personal injury case is unique, and rejecting a settlement doesn’t mean you’re being difficult—it means you’re advocating for a fair resolution.
When Should You Consider Rejecting a Settlement?
You may want to reject an insurance settlement if:
- You haven’t yet reached maximum medical improvement
- The settlement won’t cover future medical treatments
- Your financial liability is being underestimated
- You feel pressured to accept the insurance company’s first offer
- The settlement doesn’t account for lost income or ongoing medical expenses
An experienced personal injury attorney can help you determine if rejecting a settlement offer is in your best interest.
Learn more about what happens if a settlement offer is rejected. Call Greenstein & Pittari, LLP at (800) 842-8462 to schedule your free, no-obligation consultation. You can also reach us anytime through our contact page. Let us help you take the first step toward justice and recovery.
FAQs: What Happens If a Settlement Offer Is Rejected in NYC?
What does it mean to reject a settlement offer in a personal injury case?
Rejecting a settlement offer means you are not accepting the amount the insurance company proposed. It allows you to negotiate further or take legal action to seek fair compensation.
Is rejecting a settlement offer risky?
Not necessarily. If the offer doesn’t cover your medical bills, lost wages, or long-term needs, rejecting it is often the best decision. It gives your attorney room to continue negotiating for a fair settlement.
Can I still settle after rejecting the first offer?
Yes. Settlement negotiations can continue even after an initial settlement offer is rejected. Many cases settle after multiple rounds of negotiation.
What happens if negotiations fail after I reject the offer?
If negotiations fail, your attorney may file a personal injury lawsuit. This doesn’t guarantee a trial—many lawsuits still settle before reaching court.
What role does a demand letter play after rejecting a settlement?
A formal demand letter outlines your injuries, medical expenses, lost wages, and why the initial offer was inadequate. It’s a key tool in further negotiations.
Do I need a lawyer to reject an insurance settlement?
While it’s possible to reject an offer on your own, working with an experienced personal injury lawyer improves your chances of securing a reasonable settlement or pursuing legal action if needed.