Can I Refuse a Settlement Offer?

Find Law Fast Team
Jul 23
2 min read

After a car accident, the insurance company may come back with a settlement offer. It might be tempting to take it right away — after all, bills are piling up and cash sounds good. But here’s the question: Can you refuse a settlement offer?

The answer is yes — and in many cases, you probably should.

1. You Are Not Obligated to Accept

A settlement offer is just that — an offer. You are under no legal obligation to accept the first number the insurance company puts on the table.

2. Why First Offers Are Usually Low

Insurance companies are businesses, and their goal is to minimize payouts. First offers often:

Cover only immediate bills, not long-term costs.
Overlook pain and suffering damages.
Fail to account for lost wages or future medical expenses.

Taking the first offer may leave you under-compensated.

3. What Happens If You Refuse?

If you reject a settlement, you can:

Negotiate: Many claims go through several rounds before reaching a fair number.
Provide more evidence: Medical records, proof of lost wages, or expert opinions can strengthen your case.
File a lawsuit: If negotiation stalls, legal action may be the next step.

4. Risks of Refusing a Settlement

While refusal is your right, it comes with trade-offs:

It may take longer to get money.
Negotiations can drag out.
If a lawsuit is filed, the process can take months (or years).

Still, patience often pays off in a much larger settlement.

5. Tips for Handling Settlement Offers

Don’t rush into signing anything.
Compare the offer against your actual expenses and future needs.
Keep detailed records of all accident-related costs.
Talk to a professional before agreeing.

The Bottom Line

Yes, you can refuse a settlement offer — and in many cases, it’s the smartest move. First offers are rarely fair, and holding out can mean getting the compensation you truly deserve.

👉 If you’ve been injured in a car accident and received a settlement offer, fill out our quick questionnaire. FindLawFast will connect you with the guidance you need.

Disclaimer

Disclaimer: This article is for general informational purposes only and should not be taken as legal or financial advice. Settlement rights and negotiation options vary by state and case. Always consult a qualified professional about your situation before making decisions.