“Adding insult to injury” is the only way to describe how receiving an unfair settlement offer feels. Not only did someone else cause you physical harm, but now their insurance company may want to pay you less than you deserve. Remember, the first offer is rarely the best one. 

However, you are not without legal rights, as Tennessee’s civil code protects you against unsavory insurance practices, such as having to accept subpar settlement amounts. Your only requirement for civil justice is to act on solid footing based on knowing how insurance laws could work in your favor. 

In this article, Attorney Courtney Cotter shares the three basic legal options all personal injury victims hold in this situation and what you can do to obtain a fair resolution. 

Option 1. Accept the First Offer

You are well within your legal rights to accept an inadequate settlement without putting up a fight. However, I almost never suggest doing this. this option will yield a different result than obtaining a better deal. 

Here is why: 

Insurers do not have to legally release a final payment until you sign a settlement agreement and claims release related to this specific accident, thereby removing any obligation to pay future awards. Essentially, this boils down to limiting your future compensation rights, a problem when experiencing injuries with delayed onset. 

For example, imagine you suffer from whiplash and a broken arm. Whiplash injuries can take months to manifest. If you accept $10,000 but, six months later, learn that you have spinal misalignment injuries costing around $90,000 in medical care, you cannot ask for the difference. 

Option 2. Send a Counter Demand   

Insurance companies offer covered claimants at least 60 days to review their injury claims independently in Tennessee. However, the timing for your accident injury claim will depend on the policy’s terms and conditions, so you must read through it for specific details on timing. Other deadlines, such as the statute of limitations, will also apply. 

When you send a counter demand the insurance company will consider the following:

• Desired settlement demand amount 

• Medical records or billing that was not originally submitted

• Lost wage documentation that was not originally submitted

• Any additional information/evidence that would justify the demanded amount 

Option 3: File a Lawsuit

If you decide you do not want to accept the offer provided by the insurance company and the insurance company is not willing to increase its offer, then your next option would be to file a lawsuit against the defendant. It is important to note that it is not guaranteed that you will receive an offer after filing a lawsuit. Some insurance companies will take all previous offers off of the table once a lawsuit is commenced.

Our Firm’s Take: Get Legal Advice Before Acting 

Getting legal advice is something that many people think about but may not act upon for any number of reasons. Contacting a lawyer is simply that and by no means implies that you have created a formal relationship. For example, our firm offers injury victims free consultations before even approaching the conversation of legal representation so that both sides can determine if representation adds value to the outcome. 

Only you can establish if legal advice from a Tennessee personal injury lawyer is right for your situation. However, if you think the insurer’s decision seems unfair, go with your gut before acting on either option. We cannot underscore the importance of how a final release of all claims affects your future compensation rights. 

Explore Your Options with a Free Consultation From a Tennessee Lawyer

Knoxville-based personal injury attorney, Courtney Cotter, has helped people throughout Tennessee get the results they deserve. She also offers her services and resources on a contingency fee basis, meaning you owe Cotter Law, PLLC nothing until you win your case. We also do not expect you to put the “cart before the horse.” 

Instead, start the conversation about your legal rights and options in a no-cost, no-obligation setting during a Free Consultation, available by calling (865) 888-7155 or sending an online message.

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