Do I Have the Right to Refuse the Insurance Company’s Offer?

Do I Have the Right to Refuse the Insurance Company’s Offer?

Pursuing an insurance claim can often feel like navigating a maze of complex terminology, clauses, and intricate details. One common question you might have when embarking on this journey is, "Am I within my rights to decline the offer presented by the insurance company?"

Your rights form the basis of how you interact with these corporations and ultimately influence the outcome of your insurance claim. A seasoned personal injury attorney in Norristown can professionally manage your case, advocating for the rightful justice you deserve.

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What Is a Settlement Offer?

Do I Have the Right to Refuse the Insurance Company's Offer?

A personal injury settlement provides an alternative to the lengthy process of filing a lawsuit, going to court, and relying on a judge or jury to decide the outcome of your case. Surprisingly, only a mere 3 percent of personal injury cases ever progress to trial, as reported by the U.S. Department of Justice.

All parties involved generally prefer personal injury settlements.

This approach offers several benefits:

  • Expedience: Settlements typically resolve much quicker than court proceedings.
  • Cost-Effectiveness: They are less financially burdensome for everyone involved.
  • Reduced Stress: Injured parties do not have to appear before a jury, which can be emotionally taxing.
  • Confidentiality: Personal details remain private and are not part of public court records.
  • Control: Both parties exercise more significant influence over the case's resolution compared to a trial.
  • Reputation Preservation: The at-fault party or their insurance company can safeguard their public image.

Furthermore, opting for a settlement helps conserve the court's valuable time and resources for cases that genuinely require a judicial decision. Many courts across the nation mandate that personal injury victims attempt to reach an agreement with the at-fault party before initiating a court case or attending a court hearing.

Settlement negotiations can unfold over days or even months. Often, these discussions transpire behind the scenes through email exchanges and phone conversations between the involved attorneys.

Your attorney must always inform you about any settlement offers you receive and allow you to make the final decision. If you deem an offer fair, you can accept it. 

Conversely, if you believe the offer falls short and wish to continue negotiations or proceed to trial, that prerogative is entirely yours. However, weigh the counsel of your personal injury attorney seriously. They possess insights into what is in your best interest and settlements for cases similar to yours.

Preserving Your Rights in Insurance Negotiations

When pursuing insurance claims, a lawyer ensures that nobody takes advantage of you and can navigate the claims process with confidence.

Laws shield policyholders from unfair practices that insurance companies might use. These rights include timely responses to your claim, clear explanations for claim denials, and the option to challenge a denial decision.

Across most states, insurance companies must act in good faith under the law. This means they must process your claim promptly, equitably, and without any deceptive practices.

The specific laws and regulations governing insurance claims can vary based on your location and the type of insurance policy you hold or have filed a claim against.

Every state upholds Unfair Claims Settlement Practices Acts, which prevent insurance companies from employing deceitful or unjust practices when handling claims. These statutes exist to protect policyholders and ensure that insurers fulfill their contractual obligations.

Steps to Protect Your Rights

Securing your rights throughout the claims process requires a proactive approach and a wealth of knowledge.

Maintain thorough records of all interactions with the insurance company, including dates and the content of phone conversations or written correspondences. Better yet, hire an attorney to represent your claim and let them handle all contacts and negotiations with the insurance company.

If the insurer denies your claim, the insurer must provide a valid explanation, and you may contest their decision.

Regularly reviewing your insurance policy will familiarize you with its terms and conditions. This knowledge equips you to assert your rights in case of any disputes. An attorney well-versed in insurance law can protect your rights and guide you through the process.

By enlisting a lawyer, you gain an advocate who can negotiate effectively with insurance companies and handle disputes, significantly increasing the likelihood of obtaining a just and equitable settlement.

How the Insurance Company Calculates Settlement Offers

Your insurance adjuster will probably not pay your initial settlement demand. They will examine your claim thoroughly. They'll look at how you or your attorney calculated your demand and if you have evidence to prove their insured's fault or liability and your damages. They'll find ways to excuse their client from any legal responsibility for your injuries.

Your attorney's job during settlement negotiations is to convince the adjuster that:

  • There is credible evidence to back up your claim
  • Your pain and suffering damages are worth the value assigned to them
  • The calculations are realistic
  • You aren't at fault for your injuries; the insured party is

Settlement Calculators

Computerized personal injury calculators have grown in popularity with insurance companies over the past decade. One of the most widely used is Colossus.

These programs only benefit insurance companies. They work by assigning values to special damages and accounting for other factors in personal injury claims. Some of these factors include whether the claimant has legal representation or where they live.

Personal injury attorneys are vehemently opposed to these calculators. They know too many variables, such as a data entry clerk error or a lack of crucial information, can reduce injury compensation.

Computer programs use statistics and rational facts to calculate injury settlements. They can't measure the extent of your pain and suffering.

Factors Influencing the Value of Your Personal Injury Claim

To accurately assess your claim, you need a lawyer who understands the factors that can significantly increase your final settlement offer. Your attorney can explain how these factors apply to your specific case.

Type and Severity of Injuries

The nature and extent of your injuries are fundamental in determining the value of your case. For instance, someone with minor whiplash and minor injuries will likely receive a lower settlement compared to an individual with a traumatic brain injury (TBI) or spinal cord injury (SCI), necessitating lifelong medical care.

The At-Fault Party

Depending on who caused your injuries, the state may cap your compensation.

Insurance Coverages

The types and limits of insurance policies involved in your claim determine your settlement. For instance, if the at-fault party lacks insurance, your claim's value may inherently decrease. However, having underinsured/uninsured motorist coverage can increase its worth.

Multiple Liable Parties

Some personal injury claims involve multiple responsible parties, such as in a truck accident. Holding all potentially liable parties accountable can substantially increase the value of your claim.

Evidence Supporting Your Claim

The strength of your evidence is pivotal in influencing the settlement offer. Strong, compelling evidence can lead to a higher offer, as the opposing party's attorneys may not contest the claim in court.

Your Personal Injury Attorney

The competence and experience of your attorney can significantly increase the settlement offer. A well-versed attorney familiar with local laws and courts, willing to vigorously advocate for you, increases the likelihood of a favorable settlement.

Strengths and Weaknesses of Your Claim

Every personal injury case has its strengths and weaknesses. Effectively highlighting your case's strengths while addressing the weaknesses of the opposing party's claim enhances the chances of receiving a reasonable settlement offer. Your attorney can take on this task on your behalf.

Comparable Local Cases

Settlement amounts in similar cases within your jurisdiction can serve as a valuable reference. Your attorney may research these outcomes to guide negotiations.

Your Medical Bills and Expenses

The value of your medical expenses is a substantial component of your settlement. This includes a range of costs, from ambulance services to surgeries, and will significantly influence the overall value of your claim.

Lost Wages and Income

If you've had to take time off work due to your injuries, you deserve compensation for your lost income. For severe injuries that may hinder your ability to work in the future, you might seek an economic specialist to determine potential long-term financial losses.

Pain and Suffering

Beyond financial losses, you can seek compensation for non-economic losses. This includes physical pain, mental anguish, scarring, loss of enjoyment of life, and more. Though it can't erase the suffering, proper compensation can alleviate additional financial stress.

Understanding how these factors interplay is essential in evaluating the potential value of your personal injury claim and whether to accept a settlement offer from the insurance company. Your attorney will play a crucial role in navigating these considerations to secure a fair and just settlement.

Exercising Your Right to Refuse an Insurance Company's Offer

When faced with an initial or any offer from the insurance company, you may decline it. It's a common tactic for insurers to present a low initial offer, hoping that the claimant will accept it hastily to expedite the claims process. However, you are under no obligation to settle for an offer that doesn't adequately address your needs.

You have the right to have a comprehensive understanding of the policy and to demand a clear, detailed explanation from the insurer regarding the rationale behind their offer. If you find any calculations unclear or incorrect, don't hesitate to seek clarification.

Furthermore, recognize that you have the right to legal representation. Enlisting the assistance of a skilled personal injury attorney can be particularly advantageous, especially in complex cases or when the insurance company proves uncooperative. 

A qualified attorney will not only negotiate for a more equitable settlement but also handle all communications with the insurer, alleviating a significant amount of stress while actively advocating for your best interests.

With a lawyer to explain and assert your rights, you empower yourself to stand firm and pursue a fair and reasonable settlement. Make your well-being and rightful compensation of utmost importance.

Ensure Fair Compensation 

If you decide to represent yourself and miscalculate or forget to include one or more of your damages, you will not receive fair compensation for your injuries. Unfortunately, once you accept a settlement, you can't go back and ask for more money. It doesn't matter if you simply forgot to add something or made a math error.

You must include all of your damages to recover full and fair compensation. By hiring an experienced personal injury attorney, you can receive the maximum amount possible for your claim.

Don't let financial concerns keep you from getting the legal assistance you need after suffering a personal injury. Meeting with a qualified lawyer to discuss your injuries is free. 

Should you decide to hire them, you won't need to pay anything out-of-pocket. This is because most injury attorneys receive payment through contingency fees. If and when they obtain compensation for your injuries, they receive a percentage for their services.

Don't wait to seek legal help. You don't need money to have a skilled personal injury lawyer review your claim. You can receive their assistance to calculate and pursue fair compensation without any money upfront.

Gabriel Levin Author Image

Gabriel Levin - Attorney

Gabriel Levin is a highly experienced and credible attorney with over 10 years of practice in Pennsylvania. Known for his tenacity, he has represented clients in a wide range of civil matters, trying hundreds of cases. He prepares each case as if it will go to trial, ensuring meticulous attention to detail.

Unlike many firms that delegate tasks, Levin personally handles every aspect of a case and maintains open communication with clients throughout. He has secured millions in compensation, making him a reliable choice for those seeking legal representation.

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