Refusing a settlement offer in Texas doesn’t end your personal injury claim; it begins the negotiation process. Many people believe rejecting an insurer’s first offer closes the door on their case, but that’s rarely true.
Understanding what happens next if you refuse a settlement offer in Texas empowers you to seek the fair compensation your injuries demand.
Key Takeaways for Refusing a Settlement Offer in Texas
- Refusing an initial settlement offer is a normal part of the personal injury claim process in Texas.
- An insurance company may present a higher offer after you reject their first one, though it’s not guaranteed.
- Rejecting an offer opens the door for your attorney to submit a counteroffer.
- The statute of limitations in Texas still applies during negotiations, so you must watch the deadlines for filing a lawsuit.
- Knowing the full value of your claim before you accept or reject an offer gives you a strategic advantage.
The Insurance Company’s Next Move After a Refusal
After you reject an insurance company's settlement offer, the adjuster assigned to your case will review their file. Their reaction can vary. Sometimes, the adjuster will contact you or your attorney to understand your reasons for the rejection and may request additional documentation.
In other cases, they may present a slightly increased offer almost immediately to test your resolve. An adjuster might also hold firm, waiting for you to make the next move, which is often a formal counteroffer from your attorney.
The insurer’s response usually depends on the strength of your case and their assessment of potential litigation risk.
Understanding Why the First Settlement Offer Is Often Low
Insurance companies operate to protect their financial interests. An initial offer often reflects the minimum amount they believe you may accept. These offers frequently fail to account for the full extent of your injuries and losses.
Here are the primary reasons an initial settlement offer is often insufficient:
- Financial Protection: Insurance companies are businesses that prioritize their economic interests.
- Formulaic Calculations: Insurers utilize specialized software and formulas to calculate a settlement range based on easily quantifiable losses, such as existing medical bills and property damage.
- Exclusion of Future Medical Care: Initial offers rarely include the projected costs of necessary future treatments, like ongoing physical therapy, rehabilitation, or subsequent surgeries.
- Minimized Pain and Suffering: Insurance adjusters often undervalue or disregard non-economic damages, such as physical pain, emotional distress, and a reduced quality of life, because these losses lack a simple price tag.
Your Legal Options After Refusing a Settlement Offer in Texas
Rejecting an initial settlement offer is just the beginning. You have several options to pursue the compensation you need. Exploring these pathways helps you develop a clear strategy for your claim.
Entering the Negotiation Phase
Negotiation is the most common step after rejecting an offer. This process involves your attorney presenting a counter-demand to the insurance company. This demand letter details the full extent of your damages, supported by specific evidence.
A strong demand package typically includes:
- A Clear Liability Argument: Your attorney will precisely explain why the other party is at fault for your injuries, referencing evidence from the accident scene and witness statements.
- Comprehensive Damage Documentation: The letter provides a detailed accounting of all your economic and non-economic losses, including medical bills, lost wages, and pain and suffering.
- Compelling Supporting Evidence: Your attorney attaches crucial documents to the letter, such as police reports, medical records, expert witness opinions, and proof of lost income.
If you refuse a settlement offer in Texas, you’ll likely enter into a period of back-and-forth communication between your lawyer and the adjuster. Your attorney highlights the strengths of your case and the potential costs the insurer would face in a trial.
This calculated pressure often leads to a series of offers and counteroffers with the goal of reaching a fair settlement without needing to go to court.
Exploring Mediation as an Alternative
If direct negotiations stall, mediation offers a structured path forward. In mediation, a neutral third-party mediator facilitates a discussion between you, your attorney, the insurance adjuster, and their lawyer.
The mediator doesn’t make a binding decision but helps both sides find common ground. Mediation provides an opportunity to resolve the case efficiently and confidentially.
Both parties present their arguments, and the mediator works to bridge the gap between their positions—success results in a legally binding settlement agreement.
Deciding To File a Lawsuit
Filing a lawsuit becomes the necessary next step if negotiations and mediation fail to produce a fair result. Refusing a settlement offer in Texas sometimes leads directly to the courthouse.
Filing a lawsuit doesn’t mean your case will go to a trial; in fact, most personal injury lawsuits settle before the trial date. A lawsuit formally begins the litigation process, which allows your attorney to use legal tools to gather more evidence.
This stage often compels the insurance company to re-evaluate its position and make a more serious offer. A lawsuit shows the insurer you’re fully prepared to take your case to a jury if a just settlement cannot be reached.
Common Negotiation Tactics and How To Respond
Insurance adjusters use specific strategies to minimize payouts. Knowing these tactics helps you and your attorney prepare an effective response.
Common adjuster strategies include:
- Quick, Low Offers: They present a fast offer before you know the full extent of your injuries, hoping you'll accept out of financial pressure. The best response is to wait until you reach Maximum Medical Improvement (MMI) and have a complete medical prognosis.
- Requests for Recorded Statements: An adjuster may request that you record a conversation about the accident. You can politely decline, as they can use your words against you later.
- Misrepresenting Policy Limits: Some adjusters may imply that their initial offer is the maximum available under the policy. Your attorney can verify the actual policy limits to counter this tactic.
- Delaying Tactics: They may slow down communication, hoping you become frustrated and accept a lower offer. A personal injury lawyer can put legal pressure on the insurer to keep the process moving.
What Happens if You Need To Go to Court
When you and the insurer cannot agree on a settlement, your case proceeds toward trial. Filing a lawsuit initiates a phase known as discovery, during which both sides formally exchange information and evidence.
Your attorney may take depositions, which are sworn out-of-court testimonies from witnesses and experts. As the trial date approaches, settlement negotiations often continue. The prospect of a costly and unpredictable trial motivates many insurers to make a better offer.
Should your case go to trial, your attorney presents your evidence to a judge or jury, who then determines fault and the amount of compensation. Your lawyer handles all the complex legal procedures on your behalf.
To build a strong case for trial, your attorney will gather key pieces of evidence, including:
- Medical Records: A complete file of your medical history from the accident, including diagnoses, treatments, and prognoses, proves the extent of your injuries.
- Expert Testimony: Your lawyer may hire medical experts, economists, or other experts to explain complex issues and validate the cost of your damages.
- Witness Statements: Testimony from people who saw the accident or know how the injury has affected your life can provide powerful support for your case.
- Financial Documents: Pay stubs, tax returns, and employer statements establish your lost income and diminished earning capacity.
How a Personal Injury Lawyer Helps After Rejecting a Settlement Offer
While securing legal representation immediately after an injury builds a strong foundation for a claim, you can still protect your rights if you’re now facing an offer alone. Whether you’ve already rejected the settlement or are considering it, hiring an attorney marks a pivotal moment for your case.
After you decline an initial settlement, a lawyer's involvement becomes crucial. They take over the complex tasks and communication, allowing you to focus on your recovery.
A personal injury lawyer can assist your claim in numerous ways:
- Independent Claim Valuation: An attorney will conduct an independent and thorough valuation of your case, providing a clear picture of what you genuinely need compared to the insurer's low initial offer.
- Leading Strategic Negotiations: Your lawyer takes command of all communication with the adjuster, crafting and submitting a compelling counter-demand designed to maximize your recovery.
- Strengthening Your Case With New Evidence: If the insurance company's offer ignored important facts, your legal team will perform a detailed investigation to uncover new evidence that reinforces your claim for a higher amount.
- Protecting Your Right To Sue: As negotiations proceed, your lawyer carefully manages the strict Texas statute of limitations, preserving your option to file a lawsuit if the insurer refuses to be fair.
- Leveraging the Threat of Trial: By preparing your case for court from the moment they’re hired, your attorney shows the insurer you’re serious about compensation. Your attorney’s preparation, experience, and skill create powerful leverage that often results in a better settlement offer.
FAQ for What Happens if You Refuse a Settlement Offer in Texas
Can the Insurance Company Withdraw an Offer After I Refuse It?
Yes, when you refuse a settlement offer, it’s legally rejected, and the insurer isn’t obligated to keep it on the table. In most cases, however, a rejection serves as the start of negotiations. The insurer typically comes back with a counteroffer or waits for you to make a demand.
How Long Do I Have To Decide on a Settlement Offer in Texas?
Insurance companies often attach an expiration date to their offers to create a sense of urgency and encourage prompt action. The timeframe can range from a few weeks to a month.
Avoid feeling rushed; use this time to have an experienced attorney review the offer and advise you on the best course of action.
What if My Counteroffer Is Also Rejected?
If the insurance company rejects your counteroffer, the negotiation process continues. Your personal injury lawyer may present new evidence or arguments to justify your demand.
This back-and-forth can go through several rounds before you reach an agreement or decide that filing a lawsuit is the best remaining option.
What Happens if I Refuse a Settlement Offer in Texas and Go to Court?
If you refuse a settlement offer and your case proceeds to court, both sides will present evidence and arguments to a judge and jury. The jury will decide if the defendant is liable and, if so, the amount of compensation you should receive.
Does Rejecting an Offer Mean My Case Will Take a Lot Longer?
Rejecting an offer can extend the timeline of your case, but it's often necessary to secure fair compensation. A quick settlement is usually a low settlement. The added time allows your attorney to build a stronger case, negotiate more effectively, and fully account for all your damages, leading to a more favorable outcome.
Take the Right Step Forward With Lorenz & Lorenz, PLLC
Your next action defines the direction of your case. Preserve every piece of paper related to your injury, from medical receipts to letters from the insurance company; then, contact a personal injury lawyer.
If you’re wrestling with a low settlement offer in Texas, contact the team at Lorenz & Lorenz, PLLC to discuss your case. Call us at (512) 477-7333 today to learn how we can help.
