How Long Do You Have To Accept a Settlement Offer?
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How Long Do You Have To Accept a Settlement Offer?
Before responding to a settlement offer, you should understand any applicable deadline, whether the insurer can withdraw the offer, and which rights you may give up by accepting it.
Key Takeaways
- No single law sets a deadline for accepting a settlement offer, but insurance companies can attach their own time limits, and the statute of limitations puts a hard end date on your right to sue.
- Accepting a settlement means signing a release that permanently closes your claim, even if new medical costs appear later.
- You can reject or counter a settlement offer as many times as you want, but the insurance company can also withdraw an offer at any point before you accept it.
When you file a personal injury claim, the insurance company may respond with a settlement offer. This is a proposed payment meant to resolve your claim without a trial. In exchange for the money, you give up your right to seek anything more for that injury.
How long do you have to accept a settlement offer? The answer depends on the insurance company, the offer itself and the legal deadlines that apply to your claim.
How Long Does Someone Have To Accept a Settlement Offer?
There's no universal law that gives you a set number of days to accept a settlement offer. Instead, the insurance company usually decides the deadline. Some offers stay open indefinitely, while others include an expiration date, often somewhere between 14 and 90 days. If the letter includes a deadline, the offer can expire once that date passes.
What Happens If You Miss the Deadline To Accept a Settlement?
If a settlement offer expires before you respond, the insurance company no longer has to honor it. That doesn't automatically end your personal injury claim, though. You can still contact the adjuster, ask whether the offer stands or send a counteroffer to restart negotiations.
The real danger is letting the statute of limitations run out while you negotiate. In Arizona, you generally have two years from the date of the injury to file a personal injury lawsuit. California also generally gives you two years to file.
Colorado allows two years for most personal injury claims and three years for claims arising from car accidents. Once that window closes, you typically lose the right to sue, and with it, most of your negotiating power.
Can You Ask for More Time To Consider a Settlement Offer?
You can ask the insurance company for extra time to review a settlement offer, and adjusters often agree. You or your attorney can contact the insurer, explain that you're still evaluating the numbers and request an extension.
Insurers usually prefer settling over litigating, so a reasonable request rarely gets denied. If the company grants more time, ask for that extension in writing so there's no dispute later about when the offer expires.
Should You Accept the First Settlement Offer?
First settlement offers tend to arrive quickly and come in low. Insurance companies know that medical bills pile up fast after an accident, and a quick check can look appealing before you understand the full cost of your injuries.
If you accept a settlement offer before your doctors know whether you'll need surgery, therapy or long-term care, the payout won't account for those expenses. Once you sign the release, you can't come back and ask for more.
How Do You Know If a Settlement Offer Is Fair?
A fair personal injury settlement reflects the full value of your losses, not just the bills sitting on your counter today. Before you can judge an offer, you need a clear picture of everything the injury has cost you and will cost you going forward.
That picture usually includes:
- Medical bills you've already received
- Future treatment, such as surgery, medication or physical therapy
- Lost wages from time away from work
- Reduced earning ability if you can't return to the same job
- Property damage from the accident
- Pain and suffering
Comparing the offer against this complete total tells you whether the number is reasonable. Many people also weigh factors like shared fault, since Arizona, California and Colorado all reduce compensation based on your percentage of responsibility for the accident.
Can You Reject a Settlement Offer?
You have every right to turn down a settlement offer. It's a proposal, not a demand. When you reject a settlement, though, the original offer is generally taken off the table. From there, negotiations usually continue with a counteroffer from you or a revised number from the insurer.
Keep in mind that rejecting an offer carries some risk. The insurance company isn't required to come back with more money, and it may hold firm or offer even less next time.
How Many Times Can You Reject a Settlement Offer?
No law limits how many settlement offers you can turn down. You can reject and counter as many times as negotiations require, and many claims involve several rounds before both sides agree.
However, every rejection stretches out the process, and the statute of limitations keeps ticking in the background. If settlement negotiations stall completely, filing a lawsuit before the deadline preserves your claim while you and your lawyer figure out your next steps.
Can the Insurance Company Withdraw a Settlement Offer?
The insurance company can withdraw a settlement offer at any time before you accept it. An insurer might pull an offer if new evidence surfaces, if it believes your case got weaker or simply as a pressure tactic.
Once you accept an offer, the agreement becomes binding on both sides, and the insurance company can't take back the money.
Can You Negotiate After Receiving a Settlement Offer?
Every settlement offer is open to negotiation. In fact, back-and-forth bargaining is how most personal injury claims get resolved. The process typically starts with a demand letter that lays out your injuries, your losses and the amount you're seeking. The insurer responds, you counter, and the two sides work toward a middle ground.
Do You Need a Lawyer Before Accepting a Settlement Offer?
You’re not required to hire an attorney before accepting a settlement offer, but doing so may benefit you. The release you sign is permanent, and insurance adjusters value claims for a living, while most injured people are doing it for the first time.
An experienced personal injury attorney can calculate what your claim is actually worth, handle the negotiations for you and stay on top of deadlines before they become problems.
Sargon Law Group Can Help With Questions About Whether To Accept a Settlement Offer
Deciding whether to accept an insurance payout is a high-stakes decision, and you shouldn't have to guess if a deal is fair. Even if you don't have long to accept a settlement offer, Sargon Law Group can help you evaluate your options before the deadline passes.
We proudly represent injured individuals throughout Arizona, California, and Colorado on a contingency fee basis, which means you pay absolutely nothing unless we recover compensation for you.
Before you sign any paperwork or leave money on the table, contact Sargon Law Group today to schedule a free consultation with a personal injury attorney.