When you’ve been injured in an accident, whether it’s a car crash in Midtown or a slip and fall in a Bronx grocery store, the insurance settlement offer can feel like a lifeline. But what happens if the number on that check simply doesn’t add up to your losses, pain, and long-term needs? Rejecting an insurance settlement offer is a strategic decision, not an end to your case.
In New York City, where personal injury cases often involve complex liability rules, it’s critical to understand the implications of rejecting a settlement, and it is essential to know what comes next.
When Should You Reject an Insurance Settlement Offer?
In most NYC personal injury cases, the first settlement offer from an insurance company is far below what a claim is truly worth. This is often a calculated move by insurers, relying on the injured party’s financial distress or lack of legal representation.
You should consider rejecting a settlement offer if:
- The compensation does not cover all medical expenses, especially future treatments
- It does not reflect lost wages or reduced earning capacity due to your injury
- The offer fails to address non-economic damages, such as pain and suffering
- You have not fully recovered or reached maximum medical improvement (MMI)
- Liability or fault is being unfairly apportioned to you
In any of these situations, especially in New York, where comparative negligence law can significantly affect payouts, rejecting the offer may preserve your right to a fairer outcome.
At this critical point, consulting a New York City personal injury firm like Seitelman Law Offices can help you assess whether an offer reflects the true value of your claim and guide your next steps.
Why Do Insurance Companies Offer Low Settlements?
Insurance companies are not in the business of paying out maximum damages. Their priority is to close claims quickly and cost-effectively. Lowball offers are part of a broader strategy to limit payouts, often counting on the average claimant’s lack of legal understanding or the financial pressure they feel.
Reasons insurance companies may offer a low settlement:
- Early offers to preempt full injury documentation: Insurers try to settle before you understand the full impact of your injuries.
- Assumption of partial fault: Under New York’s pure comparative negligence rule, your compensation can be reduced based on your share of the blame.
- Delaying tactics: Insurers may stall, waiting for claimants to become desperate enough to accept a lower offer.
These tactics often place unrepresented claimants at a disadvantage. Insurance adjusters are trained negotiators, and without legal guidance, many injury victims settle for far less than they deserve.
Mistakes to Avoid When Dealing with a Low Settlement Offer
If you’re thinking of rejecting a settlement offer, avoid these common pitfalls that could harm your case:
1. Rejecting Without a Counteroffer
Silence is not a strategy. You should respond with a detailed counteroffer, citing your damages with supporting documentation.
2. Failing to Document Everything
Maintain meticulous records such as medical bills, time off work, rehab receipts, and a journal of your pain and daily limitations. These strengthen your position in negotiations.
3. Speaking Directly With the Adjuster After Rejection
Once you reject a settlement, the insurance company may increase pressure. Anything you say can be used to reduce your claim. It’s best to let your attorney handle all communications.
4. Not Considering the Long-Term Impact
A settlement should cover your future medical care, therapy, and potential ongoing complications. Settling too early may leave you responsible for unforeseen expenses.
The Right Way to Respond to a Low Settlement Offer
Rejecting an offer isn’t about saying “no” and walking away. It’s about strategic negotiation.
Here’s how to respond the right way:
- Get a written offer: You need the insurer’s settlement amount in writing to properly evaluate and respond.
- Prepare a demand letter: This formal document includes your account of the accident, liability arguments, a detailed description of injuries, and a specific dollar amount supported by documentation.
- Include a damages breakdown: Medical bills, lost wages, property damage, and intangible damages, such as emotional distress, all need to be clearly outlined.
- Set a deadline: This prompts timely negotiation and demonstrates you’re serious about pursuing fair compensation.
If the insurer still fails to meet your demand, you may have to prepare for the next step: litigation.
What Happens After You Reject an Insurance Settlement Offer?
Once you reject a settlement, negotiations may continue, or the matter may move closer to a lawsuit.
Continued Negotiation
In many cases, the insurance company will return with a better offer. A skilled attorney can leverage comparative case results, medical expert testimony, and accident reconstructions to strengthen your case and bring the other side back to the table.
Filing a Lawsuit
If negotiations stall, your attorney may file a personal injury lawsuit in the appropriate New York court. Litigation introduces formal discovery, depositions, and the potential for trial. However, most cases still settle before trial.
In New York, the statute of limitations for personal injury claims is generally three years from the date of the accident (according to NY CPLR § 214). Missing this deadline can permanently bar your claim.
Filing a lawsuit often signals to the insurance company that you’re not willing to settle for less and can lead to significantly improved offers.
How a Personal Injury Attorney Can Help You Move Forward
Rejecting a low settlement offer is often the first step in a more assertive legal process. That process requires strategic thinking and a detailed understanding of New York personal injury law. Whether you were injured in a Manhattan car crash or a construction accident in Brooklyn, pursuing full compensation requires advocacy that matches the insurer’s legal resources.
The attorneys at Seitelman Law Offices work with injured New Yorkers to develop evidence-based demands, communicate with insurers, and litigate when necessary to pursue maximum compensation. If you’ve been injured and the settlement offer doesn’t reflect the reality of your needs, it’s important to take action early.
Whether you’re facing high medical costs, permanent disability, or emotional trauma, don’t settle for less than you deserve. With proper legal representation and a clear understanding of your rights, rejecting an insurance settlement offer can be the beginning of a path towards justice and a practical, sensible way to get the financial compensation you need to move forward.