Colorado personal injury plaintiffs are entitled to compensation for the full extent of their medical expenses, lost income, and property damages, plus a fair amount for their pain and suffering and loss of quality of life. Usually, this is paid by the defendant’s insurance carrier, so in most cases, securing a settlement involves negotiation with the insurance company.
You have a reasonable expectation to be treated fairly in your civil claim, but all too many plaintiffs are dismayed when the initial offer is too low to cover their out-of-pocket expenses. An experienced Denver personal injury attorney can improve your chances of securing a fair settlement, which often means rejecting the initial settlement offer.
So what happens next?
Why you might reject an insurance settlement offer
Insurance companies exist to make money. Paying out large settlements impacts their bottom line; insurance adjusters are trained to find any reason to deny or minimize a claim, especially a large one. Lowball offers are the main reason for rejecting an offer, but it’s not the only one.
- Outright denial of liability. The insurer may deny liability altogether, but may offer a pittance to resolve the matter, so they don’t have to spend money on legal costs.
- Unaccounted expenses. The offer may include compensation for immediate post-accident medical treatments, but may not include the ongoing cost of care, physical therapy, or lost wages.
- Non-economic damages ignored. Many offers exclude compensation for pain, emotional trauma, or loss of enjoyment of life. These are damages you’re legally entitled to in Colorado.
- Punitive damages are warranted. Punitive, or punishing, damages may be in order in cases where the defendant’s actions are egregiously negligent; these are only awarded by a jury, and aren’t part of a typical settlement offer.
What happens after rejecting a settlement offer?
You may have received a settlement offer without initiating legal action. Upon realizing that the offer doesn’t cover your needs, you may then solicit legal representation. Your lawyer may send a formal demand letter and file a lawsuit on your behalf. A formal demand letter typically outlines your damages and legal basis for the claim. At this point, one or more of the following could happen:
You continue negotiating
Getting a lawyer shows you’re serious about your claim. Your attorney can respond to the insurer’s initial offer with a counteroffer that covers future damages and non-material losses. A counteroffer details the specifics of your damages and the value of each.
The more evidence you have substantiating the extent of your damages and their objective value, the more likely the insurance company is to accept your counteroffer. Your medical records (including estimates of future medical needs), eyewitness and expert witness testimony, property damage estimates, and photo, video, and electronic evidence can all bolster your claim.
When insurers see that you have a solid, evidence-based case, they may be less certain of winning at trial, and therefore more likely to settle for a reasonable amount.
You could go to trial
Filing a lawsuit means that the matter could end up going to trial. Most personal injury claims are resolved out of court, but not all. If the insurance company believes they have a good chance of winning at trial, then negotiations cease, and both sides prepare for litigation.
If the insurer is acting in bad faith, litigation and a court-ordered award may be the only way you get the compensation you’re entitled to. Bad faith means the insurer is failing to handle your claim honestly or fairly, which may entitle you to additional damages.
Pay attention to the statute of limitations
Don’t delay negotiations too long. The statute of limitations to file a personal injury lawsuit is just two years from the date of the event, unless it’s a car wreck. Then the statute of limitations is three years.
Insurers know this, and it’s often their intention to “run out the clock” in endless negotiations until the statute of limitations expires and you can’t file a lawsuit.
How do I know when to reject a settlement offer?
If you’re not sure if you should accept or reject a settlement offer, here are some tips to help you make the right decision for your claim:
- Talk to a lawyer. An experienced Denver personal injury attorney can properly value your case and its merits, and advise you if the settlement offer is fair, or if you have a weak case and you should take what you can get.
- Assess your priorities. Ask yourself: Is the settlement enough to cover your long-term losses, or will you end up paying out of pocket later?
Protect your right to full compensation
Rejecting an insurance settlement offer doesn’t mean giving up. It means standing up for the true value of your claim. If you’re dealing with lowball offers, unaccounted future medical expenses, or an insurer acting in bad faith, you don’t have to go through it alone.
At Zara Injury Law, our experienced Denver personal injury attorneys know how to hold insurance companies accountable. Call Zara Injury Law today at (866) 823-8288 for a free consultation with an experienced personal injury attorney.