Receiving a settlement offer in a personal injury case can feel like reaching a milestone, but it’s often just one step in your recovery journey.
Insurance companies frequently present initial offers that fall short of covering the full extent of your expenses and suffering.
Understanding what happens when you reject an insurance settlement offer is crucial for injured people in Tennessee seeking fair compensation through an insurance claim.
Why You Might Reject an Offer and Initial Next Steps
Many personal injury victims turn down first settlement offers from insurance adjusters for good reasons, such as these examples:
- Inadequate compensation – While it might initially appear to be a considerable sum of money, the settlement offer may actually fail to adequately cover your medical bills, lost income, and other losses.
- Lack of consideration for future costs – Your serious injuries may require ongoing medical expenses, which the offer does not account for. That is often an issue if you have not yet reached maximum medical improvement.
- Failure to account for your pain and suffering – The emotional toll of your injuries deserves proper acknowledgment, as do any major changes in your life caused by your injuries.
- Disputed liability – The insurance settlement offer might incorrectly assign partial blame to you.
When rejecting the insurance company’s first offer, an experienced attorney will typically respond with a formal counterdemand. The counterdemand should detail why the initial amount is insufficient and provide evidence supporting a higher valuation.
Continuing Negotiations vs. Preparing for Trial in Tennessee
After rejection of a lowball settlement offer, two paths typically emerge.
Your personal injury attorney may continue negotiating with the insurance company to seek a mutually acceptable agreement, potentially through multiple rounds of offers and counterdemands. In some cases, the parties may use alternative dispute resolution methods like arbitration or mediation. Tennessee law encourages good-faith negotiations, and many cases resolve during the negotiation phase.
Alternatively, if the negotiation process stalls and the insurance company refuses to offer a fair settlement, your attorney might begin preparing for trial.
The litigation preparation process includes gathering additional evidence in the discovery phase, securing expert witnesses, and filing necessary court documents. Even as trial preparation begins, settlement negotiations with the insurance company often continue in parallel to court proceedings.
The Risks and Potential Rewards of Taking Your Case to Court
Taking your personal injury claim to court carries both risks and potential benefits.
Tennessee courts can award compensation far exceeding initial settlement offers, particularly when evidence strongly supports your claim. Juries may also award additional damages for particularly egregious negligence.
However, trials extend your timeline for case resolution, sometimes by months or years. Favorable outcomes are never guaranteed in the legal process, and you could end up with no financial compensation. Even if you win the personal injury lawsuit, Tennessee’s modified comparative fault system means your compensation could be reduced if you’re found to be partially responsible for your injuries.
Discuss Your Settlement Options with The Terry Law Firm
Making informed decisions about settlement offers requires the guidance of an experienced personal injury lawyer.
The Terry Law Firm combines small-town personalized service with sophisticated legal skills and resources to evaluate your specific circumstances. Our experienced attorneys are ready to explain the actual value of your claim, the strength of your evidence, and the realistic outcomes that could result from continuing negotiations or proceeding to trial.
With over 50 years of combined experience serving East Tennessee communities, we can give you the clear guidance and legal representation you need during this critical decision-making process.
We are ready to fight for your rights and the maximum compensation you deserve during this challenging time. Call The Terry Law Firm today or use our online form for a free consultation with an experienced personal injury attorney.
