Quick Answer: What Happens After Rejecting a Settlement Offer?
Understanding What Happens When You Reject a Settlement Offer is crucial for anyone navigating a personal injury case.
When you reject a settlement offer in a personal injury case, your claim remains active, and negotiations typically continue. The insurance company may increase its offer, request additional documentation, maintain its position, or temporarily withdraw the offer while reassessing its strategy.
Most importantly, rejecting a low settlement offer does not in itself end your case; it often leads to better compensation.
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Does Rejecting a Settlement Offer End My Personal Injury Case?
No, rejecting a settlement offer does not in itself end your personal injury case. Your claim remains fully active with all rights intact. Here’s what stays in place after rejection:
- Your legal right to pursue compensation
- All existing evidence and documentation
- Your ability to negotiate further
- The option to file a lawsuit if needed
- Your damages claim for medical bills, lost wages, and pain and suffering.
Insurance companies expect initial offers to be rejected. In fact, first settlement offers are typically 40-60% lower than the final settlement amount in successful personal injury cases.
How Insurance Companies Respond to Settlement Rejection: 4 Common Scenarios
Exploring What Happens When You Reject a Settlement Offer? can help you make informed decisions moving forward.
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Increased Settlement Offers (usually after your new counteroffer).
Insurance adjusters often return with higher offers after reevaluating:
- Medical expense documentation
- Long-term treatment costs
- Litigation risk assessment
- Potential jury verdict exposure
Note: Without an attorney, the insurance company’s exposure is limited.
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Additional Documentation Requests
Insurers may request:
- Updated medical records and bills
- Treating doctors’ medical narratives
- Lost wage verification
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Maintaining Their Position
This option is usually chosen when the counteroffer you propose is outside the norm for the facts of your case. In other words, your demand is too high.
Some insurers hold firm, waiting to see if you’ll:
- Accept the original offer later.
- Counter with a lower amount than the originally demanded amount.
- File a personal injury lawsuit.
- Provide new evidence.
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Temporary Offer Withdrawal
Insurers might withdraw offers to:
- Put pressure on you.
- Consult defense attorneys.
The Strategic Power of Counteroffers After Settlement Rejection
A well-done counteroffer changes a rejection into negotiation leverage. Here’s how to make an effective counteroffer.
Read More:Â State Farm Claims and Car Accidents
How to Make Strong Counteroffers:
Submit Complete Medical Evidence:
- Complete treatment records
- Future care projections from treating physicians
- Impairment ratings
- Specialist recommendations
- Prescription documentation
Economic Loss Documentation:
- Lost wage statement with employer verification
- Out-of-pocket expense receipts
- Paid or incurred medical expenses
Non-Economic Damages:
While non-economic damages are difficult to document, objective proof can help your case. Items such as:
- Objective findings on medical tests.
- Photographs of the injuries.
- Evidence of the seriousness of the impact in situations like a car wreck.
When Settlement Rejection Leads to Filing a Personal Injury Lawsuit
When settlement negotiations stall, a lawsuit is often the only real option available to get fair compensation in some situations. However, filing the lawsuit will usually extend the time to case resolution. Here is an example of a timeline after a lawsuit is filed.
Timeline After Rejection to Lawsuit Filing
- Weeks 1-2: Final negotiation attempts
- Weeks 3-4: Attorney case evaluation and lawsuit preparation
- Week 5: Lawsuit filing
- Months 2: Discovery phase begins
- Months 6-12: Depositions and expert witnesses
- Months 12-18: Mediation attempts
- Months 18-24: Trial preparation or settlement
Why Lawsuits Can Increase Settlement Values
Filing a lawsuit creates pressure through:
- Court-imposed deadlines that force action
- Discovery obligations revealing damaging evidence
- Deposition testimony locking in statements
- Expert witness reports quantifying damages.
- Jury trial uncertainty motivating settlement.
Statistical Reality: Over 95% of personal injury lawsuits settle before trial, often at significantly higher amounts than pre-litigation offers.Â
Rejecting Low Settlement Offers Can Increase Your Compensation
Evidence Development Can Strengthen Case Settlement Values
As your case progresses after rejection:
- Medical conditions may worsen or require surgery.
- Long-term complications become apparent.
- Economic losses accumulate
- Discovery uncovers liability evidence.
- Prior incidents or violations emerge.
Real-World Value Increases After Settlement Offer Rejections
Common scenarios where rejection leads to higher compensation:
Soft Tissue Injuries: Initial offer: $3,000 → Final settlement: $15,000
Broken Bones: Initial offer: $10,000 → Final settlement: $35,000
Surgery Required: Initial offer: $25,000 → Final settlement: $150,000
Permanent Disability: Initial offer: $50,000 → Final settlement: $1,500,000.
Often, the only way to maximize your compensation is to hire the best personal injury lawyer near you for help. Experienced lawyers who are not afraid of doing the work to go to trial can give you the best chance for the most compensation.
Risks of Rejecting a Settlement Offer: What You Need to Know
Potential Downsides to Consider
Trial Uncertainty:
- Juries may award less than offered.
- Liability findings could favor the defendant.
- Comparative fault in Texas reduces your financial recovery.
- Appeals delay payment for years.
Financial Pressures:
- Mounting medical bills during litigation
- Lost wages continue accumulating.
- Lawsuit expenses will increase.
- Stress and time investment grow.
Liability Considerations
Before rejecting any settlement offer, evaluate:
- Evidence strength (photographs, witnesses, police reports)
- Liability clarity (fault determination, traffic violations)
- Jury venue tendencies (conservative vs. plaintiff-friendly)
- Insurance coverage limits (policy maximums, umbrella coverage)
- Alternative recovery sources (underinsured motorist, employers)
Understanding Insurance Policy Limits and Settlement Rejection
When Policy Limits Affect Your Decision
Scenario 1: Clear Liability, Severe Injuries
- Reject offers below policy limits when the damages exceed all insurance coverage.
- Investigate additional coverage sources.
Scenario 2: Limited Insurance Coverage, Catastrophic Damages
- Consider accepting policy limits.
- Pursue underinsured motorist claims.
- Investigate third-party liability.
- In Texas, recovering damages from a person not covered by insurance is not easy.
Policy Limits Insurance Demand
If an insurer fails to offer policy limits when liability is clear, and after an offer to accept policy limits has been made rejection may trigger excess verdict exposure for insurer. Note: always consult an experienced personal injury lawyer when assessing this scenario.
Settlement Rejection Timing: When to Say No
Early Case Rejection (0-6 Months)
Maybe Appropriate when:
- Medical treatment ongoing
- Prognosis uncertain
- Damages still accumulating
- Investigation incomplete
Mid-Case Rejection (6-12 Months)
Consider rejecting low offers when:
- Medical stability achieved
- Future care needs identified
- Economic losses documented
- Liability evidence strong
Pre-Trial Rejection (12+ Months)
Strategic when:
- Trial leverage maximized
- Expert opinions favorable
- Jury venue advantageous
- Settlement far below verdict potential
Why Rejection May Be Best Rather Than Letting Offers Expire
Why Reject Offers
- Maintains negotiation momentum
- Demonstrates case confidence
- Preserves professional relationships
- Enables immediate counteroffers
Passive Expiration Risks
- Signals disengagement or indecision
- Loses negotiation leverage
- May close communication channels
- Delays resolution unnecessarily
Best Practice: Always formally respond to settlement offers with clear reasoning and counterproposals.
Frequently Asked Questions About Rejecting Settlement Offers
Can I change my mind after rejecting a settlement offer?
Sometimes. If the offer hasn’t been formally withdrawn, you may be able to accept it. However, insurers often withdraw rejected offers, requiring new negotiations.
How long do I have to decide on a settlement offer?
Typically, 15-30 days, though deadlines vary. Some offers expire on a date specified, while others remain open indefinitely.
Will rejecting an offer anger the insurance company?
No. Insurance adjusters expect negotiation. Professional rejection, supported by evidence, demonstrates the case’s strength and seriousness.
Should I reject the first settlement offer?
In most cases, yes. First offers are typically 40-60% below fair value. However, evaluate each offer based on your specific circumstances and evidence.
Can I reject a settlement offer without a lawyer?
Yes, but it’s risky. Attorneys understand fair values, negotiation tactics, and litigation alternatives. Most personal injury lawyers work on a contingency basis, meaning you pay nothing up front.
What percentage of cases settle after initial rejection?
Approximately 85-90% of personal injury cases settle after rejecting initial offers but before trial. Most achieve significantly higher compensation through continued negotiation.
Making Settlement Decisions
Before Rejecting Any Settlement Offer:
- Document everything comprehensively
- Calculate provable damages, including future costs.
- Assess liability objectively.
- Know insurance limits.
- Consult an experienced injury attorney for case evaluation.
Red Flags Indicating Maybe You Should Reject an Offer:
- The offer doesn’t cover medical bills like a lowball offer.
- Future treatment ignored
- Pain and suffering are undervalued.
- Lost wages incomplete
- Permanent impairment unaddressed
- Quick pressure tactics were used.
Get A Professional Settlement Evaluation
Rejecting a settlement offer is a critical decision that requires careful analysis of the evidence, law, and strategy. When properly executed, rejection advances your case toward fair compensation rather than accepting inadequate offers. Many personal injury lawyers offer free case consultations to discuss your facts. Yet, without a thorough review of the case, it would be very hard for an attorney to give a value to your claim.
Remember: The strongest settlements come from preparation, not desperation. Document thoroughly, negotiate strategically, and never accept less than your injuries deserve.
Contact Baumgartner Law Firm for Help with a Personal Injury Settlement
6711 Cypress Creek Pkwy, Houston, TX, 77069
(281) 587-1111
Related Resources:
- How to Deal with a Low Settlement Offer
- Things to Know About a Free Consultation with a Personal Injury Attorney
- Do I Really Need an Attorney for a Personal Injury Claim in Texas?
- Mediation in a Personal Injury Case
- What Are Non-Economic Damages in Texas
