By Crash News Writer 
If you’ve been in a car accident and received a settlement offer from an insurance company, your first instinct might be to take the money and move on. After all, you need to pay medical bills, repair your car, and get back to normal. But what if the offer is too low? Can you say no? The answer is yes—you have the right to refuse an insurance settlement.
Refusing an insurance settlement isn’t just allowed; sometimes it’s the smartest thing you can do. In this blog, we’ll walk you through your rights, when you should consider rejecting an offer, and how to handle the process with confidence.
Understanding What a Settlement Really Means
A settlement is the insurance company’s attempt to close your claim. In exchange for a payment, you agree not to pursue additional compensation—even if new medical issues pop up or you discover more damage later. That’s why it’s so important to make sure the settlement is fair before signing anything.
Once you accept and sign the agreement, your case is closed. There’s no going back for more money, no matter what happens. That’s why refusing an insurance settlement may be your best option if the offer doesn’t truly cover your losses.
Why Insurance Companies Offer Low Settlements
Insurance companies are businesses. Their job is to protect their bottom line. When they offer a quick settlement, it’s often a tactic to limit how much they pay out.
They may:
- Offer money before you’ve finished treatment
- Base the amount only on initial damages
- Ignore pain and suffering or long-term needs
- Count on your desperation or confusion
They hope you’ll accept without asking questions. That’s why knowing your rights and standing your ground matters.
When Refusing an Insurance Settlement Makes Sense
There are many valid reasons to reject a settlement offer. Here are some of the most common situations where saying “no” is in your best interest:
- Your Injuries Are Still Being Treated: If you’re still undergoing medical care, it’s impossible to know your total expenses. Don’t settle before you’ve reached maximum medical improvement.
- The Offer Doesn’t Cover All Your Damages: A fair settlement should include medical bills, lost wages, car repairs, and pain and suffering. If it doesn’t, it’s not enough.
- You Were Pressured to Decide Quickly: You have the right to take your time, review the offer, and speak with a legal expert before making any decisions.
- You’re Being Blamed in Part for the Accident: If the insurer is trying to reduce your payout by saying you’re partially at fault, speak with an attorney before accepting anything.
You can learn more about how partial fault works in car accident claims in this guide to comparative fault personal injury cases.
How to Refuse an Insurance Settlement Properly
Refusing an insurance settlement doesn’t mean burning bridges or being hostile. It’s a strategic step that keeps your claim open and allows for further negotiation. Here’s how to do it:
- Stay calm and professional: Let the adjuster know you don’t agree with the offer and plan to submit a counteroffer or seek legal help.
- Put it in writing: Send a formal letter or email explaining why the settlement is insufficient and what additional compensation you believe is fair.
- Gather supporting documentation: Include updated medical records, repair bills, lost wage statements, and any other proof that shows your true costs.
- Consult a personal injury attorney: An attorney can handle the back-and-forth negotiations and fight for the full value of your claim.
You don’t have to navigate this alone. The support of a lawyer makes the process smoother and protects you from insurance company tricks.
What Happens After You Refuse a Settlement?
When you turn down a settlement, your claim remains open. This allows you to negotiate for a better offer or, if necessary, file a lawsuit. Most personal injury claims are resolved through negotiations, but having the option to go to court strengthens your position.
Keep in mind there are time limits. Each state has a statute of limitations for filing a lawsuit. If that deadline passes, you could lose your right to pursue compensation. Learn more about this process with the personal injury claim timeline.
Is There a Risk in Refusing?
Some people worry that saying “no” means they’ll walk away with nothing. But here’s the truth: refusing an unfair offer often leads to better results.
Once you show the insurance company that you won’t accept less than you deserve, they’re more likely to take your claim seriously. You may receive a revised offer that better reflects your needs.
Can You Make a Counteroffer?
Absolutely. If you’re not satisfied with the initial amount, you can submit a counteroffer supported by facts and documentation. This opens the door to negotiations and often results in a higher payout.
Just make sure your counteroffer is realistic and backed by evidence. An experienced attorney can help calculate a fair value based on your specific situation.
Frequently Asked Questions
Can I change my mind after accepting a settlement?
Once you sign a settlement agreement, it’s legally binding. You can’t change your mind or ask for more money later. That’s why it’s crucial to fully understand what you’re signing.
Do I need a lawyer to refuse a settlement?
You don’t have to have a lawyer, but it’s highly recommended. A personal injury lawyer knows how to respond to low offers and can negotiate more effectively on your behalf.
Will refusing delay my compensation?
It might delay your payment, but it can lead to a better outcome. Quick payouts are often small; waiting can mean receiving what your case is truly worth.
Can I still get a fair settlement if I refuse the first one?
Yes. Refusing an initial lowball offer is often the first step toward a fairer settlement. Many successful claims start this way.
Is there a deadline to accept or refuse an offer?
Insurance companies may give you a deadline to respond, but you don’t have to rush. Speak to a lawyer and respond thoughtfully. Just make sure your overall case stays within the statute of limitations.
You Have the Power to Say No
Refusing an insurance settlement isn’t just your right—it’s a smart move when the offer doesn’t reflect your real needs. Insurance companies count on victims settling fast. But you don’t have to play by their rules.
Take the time to review your injuries, document your expenses, and speak with a professional. You’ve already suffered enough. Don’t let a low settlement add insult to injury.
You deserve full and fair compensation. If you’re unsure what to do next, connect with a trusted personal injury attorney. They’ll help you push back, negotiate strongly, and make sure you walk away with the settlement you truly deserve.
And don’t forget—there are great resources available to guide you along the way. You’re not alone in this. Take control of your case and protect your future.