What Happens When You Reject an Insurance Settlement Offer
In personal injury cases, one of the biggest frustrations is the speed at which insurance companies try to settle. You get into an accident, and within a week, the insurance company is calling, offering a quick payout, maybe $2,000 or $5,000. But here’s the kicker: That offer rarely covers your real costs. Often, it’s an attempt to close the case as cheaply as possible, without factoring in future medical expenses, lost wages, or the long-term impact of your injuries.
Why You Shouldn’t Accept a Lowball Insurance Offer
It’s tempting to take the first settlement you are offered, especially if you’re facing mounting medical bills. However, the best course of action is to pause and evaluate. You need to look at all your treatment costs, from immediate hospital bills to ongoing rehabilitation, before agreeing to anything. The issue with these initial offers is that they don’t take into account the full scope of your injury or the treatment you’ll need down the line.
What To Do if You Get a Lowball Accident Offer from Insurance
If you receive a lowball insurance offer after an accident, it’s best to reach out to an experienced personal injury lawyer who understands possible bad faith offers. They can help you understand your rights and assist with legal action as well as:
Review the Offer: A lawyer can carefully go over the settlement offer to see what’s covered and how the insurer arrived at their offer. They can then help you compare it with your own estimates for vehicle repairs, medical costs, and other damages.
- Gather Documents: A lawyer can help you gather all relevant documentation, including medical bills, repair estimates, photos of damages, and any lost wages. This evidence will help you prove your case for a higher settlement.
- Get Secondary Estimates: It can be helpful to obtain repair estimates from multiple auto shops and, if necessary, medical evaluations from healthcare providers. These can serve as proof that the insurer’s offer is insufficient.
- Negotiate: An experienced bad faith lawyer can contact your insurance adjuster and explain why the offer is too low, providing them with the additional documentation and estimates you’ve gathered.
- File a Complaint: If your lawyer feels the insurer is acting in bad faith or not fulfilling their obligations, they can help you file a complaint with the Colorado Division of Insurance, which oversees insurance practices in the state.
- Consider Legal Action: If the insurer still refuses to offer a fair settlement, your lawyer can help you file a lawsuit for additional compensation, especially if you’re facing significant medical expenses or long-term injuries.
It’s important to know your rights and be prepared to stand up for a fair settlement after an accident.
Speak with An Experienced Lawyer Before Accepting Any Insurance Offer
That’s where a good personal injury lawyer comes in. We can help you assess the full cost of your injuries, negotiate with the insurance company, and if needed, take the case to court. It’s crucial to have a clear picture of your medical history, your recovery plan, and the financial impact of the injury before you settle. It’s not about dragging things out, it’s about ensuring that you are fully compensated for what you’ve been through.