When you are injured in an accident, one of the first big decisions you may face is whether to accept the settlement offer from the insurance company.
At first glance, the number may look reasonable, especially if you are facing mounting medical bills and time away from work. But in many cases, these first offers are far lower than what you actually deserve. That leaves many people asking: What happens when you reject an insurance settlement offer?
In Maryland, as in other states, rejecting an offer is not the end of the road. It often marks the beginning of real negotiations and can set the stage for securing the compensation you truly need. Understanding how the process works under Maryland law will help you make the best choice for your situation.
Why Insurance Companies Make Low Initial Offers
Insurance companies are not neutral.
They aim to resolve claims quickly and for as little money as possible.
Adjusters often use tactics such as:
- Offering an early payout before you know the full cost of your medical care.
- Ignoring non-economic damages like pain, suffering, or emotional distress.
- Suggesting you might share blame for the accident, which can reduce your claim value.
Rejecting an initial offer allows you to resist these tactics and advocate for a settlement that reflects your real losses.
What Happens After You Say “No”
Turning down an insurance settlement does not mean your claim disappears.
Instead, several outcomes may follow:
- Negotiation resumes – Often, the insurer comes back with a better offer once they see you are serious about protecting your rights.
- Counteroffers are exchanged – Your attorney can present a demand letter supported by medical records, wage statements, and expert opinions.
- Mediation may be considered – If progress stalls, a neutral third party may help bridge the gap.
- Litigation becomes an option – If no agreement is reached, you can file a lawsuit in Maryland courts to pursue compensation.
This process is not instant, but it ensures that you are not forced into accepting less than your claim is worth.
The Role of Maryland Law in Settlement Negotiations
Maryland law shapes what happens when negotiations drag on or break down. For example, under Maryland Courts and Judicial Proceedings § 5-101, accident victims usually have three years from the date of injury to file a lawsuit. Rejecting an offer does not stop the clock on this statute of limitations, so you and your attorney must remember the deadline while negotiating.
Maryland also follows one of the strictest negligence rules in the country: contributory negligence. This doctrine, recognized in Maryland case law, means that if you are found even 1% at fault for the accident, you cannot recover damages.
Insurance companies are well aware of this and often use it as leverage in settlement negotiations. If an offer is unfairly low because the adjuster exaggerates your share of fault, rejecting it may be the only way to pursue full compensation.
Benefits of Rejecting an Unfair Offer
Although it may feel risky, rejecting an offer often works in your favor.
Benefits include:
- Higher compensation – Insurers frequently raise their offers once they know you are willing to negotiate.
- Recognition of long-term needs – Saying no ensures that future medical care, lost earning capacity, and rehabilitation costs are considered.
- Better legal positioning – Standing firm shows you are prepared to fight for your rights under Maryland law.
It is best to discuss your options with a legal expert before you decide to reject any offer. This will help you consider factors you may not have realized when you first filed your claim.
When Acceptance May Be the Right Choice
Rejecting an offer is not always necessary.
Sometimes acceptance makes sense, particularly when:
- The offer covers your full medical bills, lost wages, and non-economic damages.
- Liability is uncertain, and going to trial carries risks.
- Your attorney advises that the offer is fair compared to jury verdicts in similar Maryland cases.
The key is not to decide alone or under pressure from an insurance adjuster.
Steps to Take Before Rejecting a Settlement
Before turning down an offer, it helps to prepare strategically:
- Review the offer carefully with the help of your lawyer.
- Calculate all damages, including medical bills, therapy costs, future expenses, and pain and suffering.
- Gather supporting documents such as accident reports, pay stubs, and medical records.
- Consider the statute of limitations to ensure you still have time to file a lawsuit if needed.
- Plan a counteroffer that reflects your actual damages and demonstrates you are ready to prove your case.
Remember to consider all factors before rejecting an offer. Make sure to evaluate the time and resources you will use to re-negotiate a new offer. You may not be able to settle the matter and have to go to court.
How a Maryland Personal Injury Lawyer Helps
Rejecting an insurance settlement is easier and more effective when you have legal representation.
A lawyer can:
- Handle communication with the insurer so you don’t say something that hurts your case.
- Build a strong claim supported by evidence and expert testimony.
- Navigate Maryland’s contributory negligence standard to fight against unfair blame.
- If the insurer refuses to settle fairly, file a lawsuit within the statute of limitations.
With a lawyer by your side, rejecting a low offer becomes a stepping stone rather than a stumbling block.
Protecting Your Future After a Rejected Offer
Rejecting an insurance settlement offer is not the end of your claim—it is often the beginning of serious negotiations that can lead to fair compensation. In Maryland, where strict deadlines and tough contributory negligence rules apply, the stakes are high. With careful preparation and the guidance of a personal injury attorney, you can push back against lowball offers and fight for the compensation you deserve.
By rejecting an unfair settlement, you are not just saying “no” to an insurer’s first number—you are saying “yes” to protecting your financial stability, your recovery, and your future.
Contact the Baltimore Personal Injury Lawyers at WGK Personal Injury Lawyers for Help Today
If you’ve been injured in an accident and want to file a personal injury claim, WGK Personal Injury Lawyers is here to help. Our team has over 80 years of combined experience fighting to protect our clients’ rights. Contact us online or call (410) 469-9349 for a free consultation with a Baltimore personal injury attorney.
