After a motor vehicle accident, dealing with insurance companies can be a daunting and confusing process. When you finally get an offer, what if it doesn’t fully compensate you for all your losses? Do you have the right to refuse it?
The short answer is yes, you absolutely have the right to refuse an offer from an insurance company. However, you must understand when and why you might want to do so, and why you should consult a car accident lawyer, to protect your interests and ensure you receive fair compensation for your injuries and damages.
Understanding Insurance Settlement Offers
New York operates under a "no-fault" car insurance system, which significantly affects how insurance claims and settlements work after a motor vehicle accident.
Under this system, regardless of who was at fault for the accident, the “no fault” insurance company or companies are responsible for covering certain medical expenses and lost wages up to a certain limit. This coverage is known as Personal Injury Protection (PIP) or no-fault insurance.
Key points about New York's no-fault system:
- Basic PIP coverage: The no-fault insurance company typically covers up to $55,000 for medical expenses, lost wages, and incidental costs, regardless of fault. Economic losses in excess of basic PIP coverage can be claimed in a third-party lawsuit against the wrongdoer.
- Limited right to sue: You can only sue the at-fault driver for pain and suffering if your injuries meet New York's serious injury threshold.
- Property damage claims: These are not covered by no-fault insurance and are still handled based on fault unless the insured has “collision coverage,” in which case a first-party claim can be made.
Given this system, insurance settlement offers in New York for bodily injury liability typically come into play in two scenarios:
- When your damages exceed basic economic loss.
- When your injuries meet the "serious injury" threshold, allowing you to pursue a claim against the at-fault driver for non-economic damages like pain and suffering.
In these cases, you may receive a settlement offer from the at-fault driver's insurance company. This offer will compensate you for damages not covered by your PIP, including excess medical expenses, lost wages beyond what PIP covers, pain and suffering, and other non-economic damages.
These settlement offers from the at-fault driver's insurance company are often initial, low offers. Insurance companies, even in a no-fault state, are businesses aiming to minimize their financial liability. As such, they may try to settle quickly and for as little money as possible.
You are not obligated to accept the first offer—or any offer—from an insurance company. You can negotiate a fair settlement that adequately compensates you for your injuries and damages beyond your PIP coverage.
This is where having a personal injury attorney well-versed in New York's no-fault laws becomes invaluable. They can help you understand your rights, determine if your case meets the "serious injury" threshold, and negotiate with insurance companies to ensure you receive fair compensation for all your eligible damages.
Remember, the goal is to ensure you receive fair compensation for your injuries and damages, considering what your PIP covers and what additional compensation you may deserve from the at-fault driver's insurance.
Don't let the pressure of dealing with insurance companies or the complexities of the no-fault system lead you to accept an inadequate settlement.
Reasons to Refuse an Insurance Company's Offer
You might want to refuse an initial settlement offer from an insurance company because:
- The offer is too low: If the proposed settlement doesn't cover all your medical expenses, lost wages, and other damages, it's likely not in your best interest to accept it.
- You're still undergoing treatment: If you're still receiving medical care for your injuries, it's often wise to wait until you have a clear understanding of your long-term prognosis and associated costs before settling.
- The full extent of your injuries is unknown: Some injuries, particularly those involving the neck, back, or brain, may not manifest immediately. Accepting a settlement too soon could leave you financially responsible for future medical expenses related to the accident.
- You haven't calculated all your damages: In addition to medical expenses and lost wages, you may be entitled to compensation for pain and suffering, emotional distress, and loss of enjoyment of life. These non-economic damages can be significant and should be factored into any settlement.
- The insurance company is acting in bad faith: If you believe the insurance company is deliberately undervaluing your claim or using unfair tactics, it's important to stand your ground and seek legal advice.
The Negotiation Process
Refusing an initial offer is often the first step in a negotiation process. Here's what you can expect:
- Counter-offer: After refusing the initial offer, you or your attorney can present a counter-offer based on a careful calculation of your damages.
- Back-and-forth: The insurance company may come back with another offer, and this process can continue until both parties reach an agreement.
- Mediation: If direct negotiations fail, you might enter mediation, where a neutral third party helps facilitate an agreement.
- Litigation: If a fair settlement cannot be reached through negotiation or mediation, you may need to file a lawsuit and take your case to court.
Calculating Your Damages
To determine whether an insurance company's offer is fair, you need to clearly understand your damages. These typically fall into two categories:
Economic Damages:
- Medical expenses (current and future)
- Lost wages or income
- Loss of earning capacity
- Property damage
- Out-of-pocket expenses related to the accident
Non-Economic Damages:
- Pain and suffering
- Emotional distress
- Loss of enjoyment of life
- Loss of consortium (impact on personal relationships)
Calculating economic damages is relatively straightforward, as you can use bills, receipts, and pay stubs to determine these costs. Non-economic damages are more subjective and can be more challenging to quantify. This is where a personal injury attorney can be invaluable.
The Statute of Limitations
When deciding whether to refuse an insurance company's offer, it's important to be aware of the statute of limitations. In New York State, you generally have three years from the accident date to file a personal injury lawsuit. If you don't file within this time frame, you may lose your right to seek compensation through the court system. This time limitation can vary depending on the circumstances.
This deadline underscores the importance of not rushing into a settlement, but also not delaying the process unnecessarily. It's a delicate balance that often requires the guidance of an experienced attorney.
The Role of a Personal Injury Attorney
While you have the right to negotiate with insurance companies on your own, there are several reasons why working with a personal injury attorney can be beneficial:
Experience with Insurance Tactics
Personal injury attorneys have extensive experience dealing with insurance companies and are well-versed in their tactics. Insurance adjusters often use strategies to minimize payouts, such as downplaying injuries, disputing liability, or pressuring claimants to accept quick, low settlements. An experienced attorney can recognize these tactics and counteract them effectively.
Accurate Valuation of Your Claim
One of the most important roles of a personal injury attorney is accurately valuing your claim. This goes far beyond simply adding up medical bills and lost wages. An experienced attorney considers various factors, including future medical expenses, lost earning capacity, and non-economic damages, like pain and suffering and emotional distress.
By thoroughly evaluating all aspects of your case, a personal injury attorney ensures that you seek compensation for the full extent of your current and future damages.
Negotiation Skills
Negotiating with insurance companies requires a specific skill set that personal injury attorneys can hone through years of practice.
They understand the art of negotiation, including:
- Knowing when to push and when to compromise
- Using evidence and expert testimony to strengthen your position
- Anticipating and countering the insurance company's arguments
- Maintaining a professional demeanor while advocating fiercely for your interests
Moreover, insurance companies often take claims more seriously when an attorney is involved. They know that if they don't offer a fair settlement, the attorney can and should take the case to court.
Resources for Building a Strong Case
Personal injury law firms can access a network of professionals who can strengthen your case. These may include medical experts, accident reconstruction specialists, and economic experts. These resources allow an attorney to build a comprehensive and compelling case that clearly illustrates the full impact of your injuries and the compensation you deserve.
Ability to Take Your Case to Court
While most personal injury cases settle before trial, having an attorney who is prepared and willing to go to trial can be a significant advantage.A lawyer with litigation experience can be key to achieving the best possible outcome for your case, whether it settles or goes to trial.
No Upfront Fees
Most personal injury attorneys work on a contingency fee basis, which means they only get paid if they win your case. This arrangement offers several benefits:
- It allows you to have high-quality legal representation without worrying about upfront costs.
- It aligns your attorney's interests with your own—they're motivated to get you the highest possible settlement or verdict.
- It demonstrates your attorney's confidence in your case. They're willing to invest their time and resources because they believe in the strength of your claim.
This fee structure makes legal representation accessible to everyone, regardless of their financial situation, ensuring that anyone injured due to someone else's negligence can seek justice.
Potential Risks of Refusing an Offer
While you have the right to refuse an insurance company's offer, it's important to be aware of potential risks:
- Delays in receiving compensation: Negotiating or going to court can extend the time it takes to receive compensation.
- Possibility of a lower award: There's always a risk that continued negotiation or a court decision could result in a lower amount than the initial offer.
- Increased stress: The negotiation and litigation processes can be stressful and time-consuming.
- Costs of litigation: If your case goes to court, additional costs may be involved.
These risks underscore the importance of carefully considering each offer and seeking professional legal advice before deciding.
The Importance of Legal Counsel
Dealing with the insurance company after a motor vehicle accident can be challenging. Remember, you can refuse an insurance company's offer if you believe it doesn't adequately compensate you for your injuries and damages. However, this decision should not be made lightly.
Carefully consider the offer, your total damages, and the potential risks and benefits of continuing negotiations or going to court. Seeking the advice of an experienced personal injury attorney can provide valuable insight and help you make an informed decision.
At William Mattar Law Offices, we understand the complexities of personal injury claims resulting from motor vehicle accidents. We have the experience and resources to help you navigate the insurance claim process, negotiate fair settlements, and, if necessary, represent you in court.
Remember, the goal is to ensure you receive fair compensation for your injuries and damages. Don't let the pressure of dealing with insurance companies lead you to accept an inadequate settlement. With the right approach and professional guidance, you can protect your rights and work toward the best possible outcome for your case.
Contact William Mattar Law Offices today at (716) 444-4444 or through our online form for a free, no-obligation consultation.