Turning down an insurance offer can be a big moment in your personal injury case and requires thought and strategy. The initial offer from the insurance company may seem good, especially if you’re dealing with mounting medical bills and lost wages, but remember their priority is to pay out as little as possible. Knowing what happens when you turn down an offer can help you get the compensation you deserve.
In this blog, we’ll discuss what happens when you turn down an offer, the pros and cons, and how an experienced personal injury lawyer can help you through the process to get you fair compensation for your injuries.
Why Insurance Settlement Offers Are Often Low
Insurance offers are often lower than you expect, and knowing why is key to making informed decisions about your case.
Profit Motive
Insurance companies are businesses, and like any business, their main goal is to make a profit. Their bottom line is impacted by costs, and when a claim is filed, their initial response is often a settlement offer that is way lower than the value of the claim. By keeping payouts low, they protect their financial interests, which often means the offer doesn’t fully compensate the accident victim for their damages.
Lowball Offers
Insurers often start with an insurance company’s first offer, especially in personal injury cases. These “lowball” offers are to see if the claimant will settle quickly out of desperation. Many victims, especially those who are under financial pressure, may feel forced to settle early without fully understanding the extent of their damages or the long-term costs of their injuries. This allows the insurer to close the claim quickly and avoid bigger payouts.
Lack of Information
Another reason offers are low is the lack of knowledge many claimants have about the value of their claim. Victims who are not aware of the intricacies of personal injury cases may accept the initial offer without realizing they could get much more. Insurance companies take advantage of this information gap by giving settlement offers that don’t cover medical bills, lost wages, or long-term care needs.
Georgia Insurance Laws
Georgia law requires insurers to act in good faith when handling claims, but that doesn’t prevent them from making low offers to protect their interests. While the law is in place to be fair, insurance companies use their experience and resources to keep payouts low. Without an experienced personal injury attorney, many claimants may end up settling for less than they deserve without knowing the laws in Georgia. A formal demand letter can be a critical tool in rejecting an insurance settlement offer, as it outlines specific reasons for the rejection, supports the claim with documentation, and sets the stage for further negotiations.
The Right to Reject a Settlement Offer in Georgia
When an insurance company makes an offer after an accident in Georgia, you need to know your rights, including the right to reject an offer that doesn’t fully compensate you for your damages.
Legal Rights Under Georgia Law
In Georgia, you have the full right to reject an insurance company’s offer. Insurance companies are not the final authority on the value of your claim, and you don’t have to accept the first offer they give you. Under Georgia law, claimants have the right to negotiate for a fair settlement offer that covers all of their damages, including medical bills, lost wages, and other related costs. Rejecting an offer is often the first step to getting fairer compensation.
Reasons to Reject
There are many reasons to reject an offer. The initial offer from the insurer is often too low to cover all the medical expenses related to the injury. If the offer doesn’t account for long-term medical care, lost future earnings, or pain and suffering, it’s too low. If the offer doesn’t factor in future complications or ongoing medical treatment, then it’s in your best interest to reject it.
Consequences of Rejection
Rejecting an offer doesn’t mean the process ends; it just starts. Sometimes, an insurance company refuses to provide adequate compensation, leading to escalating situations. After rejecting an offer, you can submit a counteroffer, and the back-and-forth negotiation begins with the insurance company. Remember, Georgia law allows you to sue if negotiations don’t result in a fair settlement offer. Your right to sue is still intact during the negotiation process.
Seeking Legal Counsel
One of the best ways to exercise your right to reject an offer is to seek legal advice and get a lawyer. An experienced Georgia personal injury attorney can evaluate the offer, guide you through the rejection process, and help you negotiate a better deal. Having a lawyer ensures you know your rights and the full value of your claim, so you’ll get fair compensation for your injuries and losses.
Risks and Benefits of Rejecting a Settlement Offer
Before you reject an insurance offer, you need to weigh the advantages and disadvantages so you can make an informed decision.
Potential Benefits
Rejecting an offer often means you’ll get a higher payout. By rejecting the low initial offer, you allow yourself the opportunity to negotiate a reasonable settlement offer that covers all your medical bills, lost wages, and other damages, including pain and suffering. This is especially important if your injuries are severe or long-term. Rejecting an offer gives you more time to evaluate the full extent of your injuries and future financial needs so you don’t get shortchanged by accepting an offer too soon.
Potential Risks
Rejecting an offer can get you better compensation, but it also has risks. One of the biggest risks is delay. Negotiations can take time, and the process can drag on for months, and you’ll be faced with financial strain if medical bills and other costs keep piling up. And there’s a chance negotiations will fail and you’ll end up in a lawsuit, which can be costly and time-consuming. In some cases, a jury will give you less than what was offered or nothing at all if the evidence doesn’t support your claim.
Legal Fees and Litigation
If negotiations stall and the case goes to court, legal fees can add up fast. Court costs, expert witness fees, and attorney fees can eat into the final payout. If a fair settlement offer cannot be reached, you may need to consider filing a personal injury lawsuit as a means to assert your rights and pursue adequate compensation for your damages. You need to weigh the potential for a higher settlement offer against the cost and time of taking a case to trial. In Georgia, if you sue, you also risk the court ruling in favor of the insurance company, and you’ll get nothing more than what was originally offered.
Make the Right Choice
Rejecting an offer should be done thoughtfully with a clear understanding of the pros and cons. It means evaluating the strength of your case, the chances of winning in court, and the financial impact of prolonged negotiations or litigation. Get a Georgia personal injury lawyer to help you weigh those factors and decide if rejecting an offer is right for you.
When to Accept a Settlement Offer
When to accept an offer requires you to consider many factors, including compensation, legal advice, and the risks of continued litigation.
Full Coverage of Expenses
You should accept an offer when it covers all your current and future expenses related to the personal injury claim. This includes medical bills, lost wages, and any other costs that came out of the accident. If the offer covers all your losses and you won’t have to pay more in the future, then accepting the offer might be the smartest choice.
Strong Legal Advice
An offer is worth accepting if your lawyer, after reviewing everything, tells you it’s fair and reasonable based on the dynamics of settlement negotiations. A good lawyer will evaluate the offer based on your case specifics, including the evidence, the potential for future litigation, and the risk of losing in court. If your lawyer thinks the offer is what you can get in court, then it’s probably a good idea to settle.
Weakness of Case
In some cases, accepting an offer is the best option when the evidence in your case is weak. If liability is unclear or there’s doubt about the extent of your injuries, then it’s risky to reject an offer and go to court. When the chances of winning in court are uncertain, then settling ensures you get something rather than risking an unfavorable verdict.
Policy Limits
Another thing to consider is the policy limits of the at-fault party. If the offer is the maximum the insurance company can pay under the policy, then rejecting it may not get you more even if you take the case to court. In that case, accepting the offer ensures you get the maximum you can get without the added cost and time of litigation.
Avoid the Litigation Process
Sometimes the time and emotional cost of litigation can be more than the benefits of getting a higher settlement offer. If the offer is fair and settling will let you move on with your life without the hassle of a long court battle, then it might be best to accept. Especially if the offer gives you financial security and you can focus on recovery instead of the legal process.
Seek the Guidance of an Atlanta Personal Injury Lawyer Today!
If you receive a settlement offer that doesn’t fully cover your losses, don’t settle for less than you deserve. Our team at Atlanta Accident Lawyers is dedicated to fighting for your rights and will work tirelessly to help you secure the compensation you need to recover and move forward.
Contact us at 864-444-2062 for a free consultation today!
