If you’ve received a settlement offer that’s too low to pay for all your damages, your attorney may recommend that you turn it down.
There are a few things that may happen when you do.
The insurer may choose to:
- Continue negotiations
- Assign a new adjuster to your case
- Go silent—hoping you’ll get frustrated enough to accept the lowball settlement offer.
On your end, your attorney could submit a counteroffer. And if things still can’t be resolved, they could request mediation or, in rare cases, file a lawsuit.
We’ll cover all these in detail as we go along, including how to reject an offer the right way (if you haven’t already done so).
But before we get into any of that, your best move is to talk to your personal injury attorney. If you don’t have one, contact someone today — like the attorneys at No Bull Law — for a free consultation.
They will help you understand your options and how to maximize your compensation.
5 Things That Usually Happen After Rejecting an Insurance Settlement Offer
When you reject an insurance settlement, both the insurance company and your legal side have a few next steps to take.
1. Your Attorney Prepares a Counteroffer
After rejecting the initial settlement offer, your attorney will typically prepare a counteroffer.
They’ll ensure that the proposed figure accounts for both economic damages (your total medical bill, property damage, and lost wages) and non-economic damages (pain and suffering, loss of enjoyment of life, etc.).
This counteroffer is usually presented alongside a comprehensive collection of documents that support those claims. These could be medical records, expert opinions, wage loss statements, testimonials from loved ones, and any other evidence that helps paint a complete picture of the damages you’ve suffered.
Your counteroffer should be slightly higher than your minimum acceptable settlement, giving your lawyer room to negotiate.
Once it’s submitted, the insurance company might respond in one of two ways:
- Agree to your counteroffer.
- Respond with an offer higher than their initial one but still lower than your demand.
From there, the ball is in your court. You have the option to accept the offer or negotiate further. (Ask your attorney for advice before you decide.) This back-and-forth can span anywhere from a few months to even years as your legal side and the insurer work to find a figure both consider fair.
When an insurance settlement offer is rejected, the insurance company could assign a new adjuster to your personal injury claim.
This could be because your insurance claim amount is higher than they can handle and would require an adjuster with more authority. Or perhaps your insurance claim is more complicated than expected and requires a more experienced adjuster.
So, what’s the benefit of a new adjuster?
A new adjuster comes with fresh eyes, which could work in your favor. They might look at the earlier assessments and spot previously missed details that support your case.
That said, it could also go the other way. The new adjuster might play things by the book and ask for a re-inspection instead of relying on past notes. This would require your lawyer to reassert their case and justify their demands again, which can delay the settlement.
Either way, the insurer will make a revised offer after inspection. Then, it’s up to you to take the offer or keep negotiating.
Sometimes, after rejecting the initial offer, the adjuster suddenly stops responding to calls or emails. It’s not uncommon for insurance adjusters to “go dark,” hoping you’ll grow frustrated and accept the low offer just to move things along.
However, many insurance companies respond more promptly when they know you have legal representation. If the adjuster has gone dark for a month or so, your lawyer can pressure the insurer to take action by doing the following:
- Follow-up communication: Send a clear, documented email or certified letter listing the times you've tried to reach out and request a response by a specific date.
- Escalate the issue: Contact the adjuster’s supervisor or the claims department directly, explain the lack of communication, and request a new adjuster.
- Consider a bad faith claim: If the insurer is dragging their feet without a valid reason, your lawyer might file a bad faith claim.
Taking these steps can help hold the insurer accountable and keep your claim moving toward a fair settlement.
4. Both Parties Opt for Mediation
If your legal side and the insurance adjuster can’t come to an agreement after multiple rounds of negotiation, the next steps may involve mediation. Here, a neutral third party (a retired judge or experienced lawyer) facilitates discussions between your party and the insurer to reach a mutual agreement.
During mediation, each side shares their take on the situation, and the mediator guides the conversation, helping explore possible solutions. The mediator doesn’t make any final decisions but aims to help the accident victim and insurer meet in the middle and hopefully agree on fair terms.
The typical car accident mediation process can last anywhere from a few hours to a few days, depending on the case's complexity.
5. Your Party Files a Lawsuit
If all negotiations fall through and there’s no other way to settle things, the final legal action you can take is to file a personal injury lawsuit. This kicks off litigation — a formal legal process for resolving your insurance claim in court.
After your attorney files your lawsuit, the defendant (the party you're suing) will file an answer. Then, the "discovery" stage begins, where both sides exchange evidence and essential details about the case.
What you and your lawyer uncover during discovery can shift your expectations—it might strengthen your case and lead to a higher demand or sometimes prompt a more realistic adjustment.
In many situations, what’s revealed during discovery pushes the insurer to increase their offer significantly to avoid a time-consuming and costly trial.
If your case does go all the way to trial (only 2 - 3 % of cases usually do), both sides present their evidence, and a judge or jury makes the final call. Keep in mind that trials can stretch out for months or even years.
While you could win a bigger payout than a settlement, there’s also the chance the verdict doesn’t go your way, which could mean walking away with nothing.
As you can see, rejecting a settlement offer can create many opportunities for fair compensation, but how you approach the rejection is also important to get the outcome you deserve.
How Do You Respond to a Low Settlement Offer?
After receiving an unsatisfactory settlement offer, you and your personal injury attorney should consider taking the following steps:
- Counter “Take It or Leave It’” Tactics: Insurance companies might pressure you with arbitrary deadlines to accept the offer or hit you with so-called “final offers.” You should stay firm, keep a record of all your communications, and have your lawyer step in to push back on those pressure tactics.
- Review Carefully: Examine the insurance company’s settlement offer thoroughly, paying attention to the amount and any terms included. Before responding, your lawyer can help assess whether it covers all your losses, including every medical bill, lost income, and property damage. They can also assess any claims made for why they would have reduced the offered settlement amount.
- Consult Experts: Depending on the value of your case, your lawyer can connect you with financial experts who can explain the potential impact of accepting or rejecting the offer. They’ll help you understand how the settlement might affect your financial future, including ongoing medical expenses or the value of future lost income.
- Ask Questions: Your lawyer can ask the adjuster for specific reasons behind their offer. Understanding their logic can help your lawyer craft a stronger and more targeted response.
- Draft a Formal Response: Your lawyer will write a clear, professional response declining the lowball settlement offer, highlighting exactly where the compensation falls short.
- Prepare a Counteroffer: Your lawyer will propose a fair settlement and request to continue negotiations. They’ll include all relevant evidence supporting your demand.
- Seek Review: Before sending the response, your lawyer will review it with you so you know what's being proposed on your behalf.
- Send a Trackable Response: Your lawyer will send the rejection letter and counteroffer through certified mail or email with delivery confirmation. This helps maintain a paper trail of your negotiations, which can be useful if you wish to sue later.
- Remain Patient and Persistent: Negotiations can take several months. If the insurance company comes back with new settlement offers, your lawyer will review each one closely to ensure that it aligns with your needs. Stay engaged, follow up regularly with the insurer, and don’t feel pressured into accepting a lowball offer. If things don’t go your way, you may have to take legal action and file a personal injury lawsuit.
Take Charge of Your Car Accident Settlement with No Bull Law
If you’re looking for an experienced personal injury attorney, No Bull Law has got your back.
At No Bull Law, we believe in tackling each case with precision and care. Our team has a proven track record of securing fair compensation for our clients. They can provide legal advice, guide you through your case, and even represent you in court.
Here’s how it works:
- You can contact us for a free case evaluation
- We will start investigating your personal injury claim
- If we take up your case, we’ll charge ahead to win the settlement you’re entitled to
Our law firm can help you get a higher settlement amount for a wide range of cases, including workplace injury, slip and fall accidents, car accidents, and more.
So, get started with a free consultation call today.
3 FAQs About Settlement Negotiations
Here are a few more things you need to know about the negotiation process:
1. How Long Do Settlement Negotiations Go On For?
The settlement negotiation process can take anywhere from a couple of weeks to several years after the first offer—it depends on the case.
The duration hinges on factors like the strength of your evidence, disputes over fault, and the overall value of the personal injury claim.
2. When Should You Reject Offers?
You should consider rejecting the insurance company’s settlement offer if:
- You’re still undergoing medical treatment, and future costs aren’t clear.
- Your injuries haven’t reached Maximum Medical Improvement (MMI)—the point where your condition has stabilized.
- The offer doesn’t account for non-economic damages like pain and suffering or loss of enjoyment of life.
- The offer does not reflect your lost wages (if you cannot work).
- You feel pressured to settle before fully exploring your options.
- You disagree with how the insurer assessed fault.
- Your personal injury lawyer advises against accepting the insurance company’s offer.
3. Why Are the Insurance Company’s Offers So Low?
Insurance companies aim to protect their bottom line, so initial settlement offers are often lower than your claim’s actual value. This allows them to negotiate while minimizing what they pay out.
They can try to justify their lowball offer by:
- Claiming your injuries aren’t as serious as you claim.
- Asserting that pre-existing conditions, not the accident, caused your injuries.
- Placing a portion of the blame on you, reducing your share of compensation.
A lawyer can push back on these tactics by presenting strong evidence, highlighting weaknesses in the insurer’s arguments, and showing why you’re entitled to a higher settlement.
