You were injured in an accident that was not your fault. The insurance company made you a settlement offer. It was too low. So you rejected it. Now you may be wondering what happens next. The good news is that rejecting a lowball offer is not the end of your claim. In fact, it is often the beginning of the real negotiation process.
Insurance companies design their first offers to save money. They hope you will accept quickly before you understand the true value of your claim. According to the Insurance Research Council, claimants who hire attorneys receive settlements that are significantly higher than those who negotiate on their own. This tells you something important. The insurance company’s first offer is rarely its best offer.
South Carolina law gives injured people strong rights when dealing with insurance companies. This guide walks you through each step after rejecting a settlement offer. It covers how to build a stronger counteroffer, when to file a lawsuit, and what protections exist against unfair insurance tactics. If you need help right now, call Klok Law Firm LLC at (843) 216-8860 for a free consultation.
Why Rejecting a Low Offer Is the Right Decision
A settlement offer that does not cover your full losses is not a fair offer. Insurance adjusters calculate initial offers based on formulas that favor the company. These formulas often leave out future medical expenses, long-term pain, lost earning capacity, and emotional distress. Accepting a low offer means you give up your right to seek additional money later.
Once you sign a release, your claim is closed for good. You cannot go back and ask for more compensation when new medical problems appear. This is why timing matters so much. You should never accept an offer before you reach maximum medical improvement. That is the point where your doctor confirms your condition has stabilized and your future treatment needs are clear.
Rejecting an offer does not mean your case is over. It signals to the insurance company that you know the value of your claim. From here, several paths are available to you. Each path has its own advantages depending on the strength of your evidence and the severity of your injuries.
Step 1: Review the Offer and Calculate Your True Damages
Before you respond to the insurance company, take stock of every loss the accident caused. Start with your economic damages. These include medical bills you have already paid, ongoing treatment costs, and future medical expenses your doctor recommends. Add lost wages from time missed at work. If your injuries reduce your ability to earn income in the future, include that lost earning capacity as well.
Next, consider your non-economic damages. The South Carolina Supreme Court established in Edwards v. Lawton, 244 S.C. 276, 136 S.E.2d 708 (1964), that these damages are left entirely to the jury’s judgment. The Court stated:
“Pain and suffering have no market price. They are not capable of being exactly and accurately determined, and there is no fixed rule or standard whereby damages for them can be measured.”
Edwards, 244 S.C. at 281, 136 S.E.2d at 710.
The Supreme Court later recognized an additional category of damages in Boan v. Blackwell, 343 S.C. 498, 541 S.E.2d 242 (2001). The Court held that loss of enjoyment of life is “a compensable element, separate and apart from pain and suffering.” Boan, 343 S.C. at 502, 541 S.E.2d at 244. This means the insurance company must account for how the accident changed your ability to enjoy daily activities, hobbies, and relationships. If the settlement offer ignores these losses, it is too low.
Gather all your supporting documents. Medical records, billing statements, pay stubs, employer letters, therapy notes, and photographs of your injuries all strengthen your position. The more thorough your documentation, the harder it becomes for the insurance company to justify a low offer.
Step 2: Send a Written Counteroffer with a Demand Letter
After rejecting the offer, your next move is to send a formal demand letter. This letter is the cornerstone of your negotiation. It should clearly state why the insurance company’s offer falls short and present your counteroffer with supporting evidence.
A strong demand letter includes several key components. First, it describes the accident and establishes the other driver’s fault. Second, it details every injury you suffered and the treatment you received. Third, it lists all your damages with dollar amounts supported by documentation. Finally, it states your demand for a specific settlement amount.
The demand letter should also address liability directly. If the other driver violated a traffic law, that violation may establish negligence as a matter of law. The South Carolina Supreme Court held in Wise v. Broadway, 315 S.C. 273, 433 S.E.2d 857 (1993):
“The causative violation of a statute constitutes negligence per se and is evidence of recklessness and willfulness, requiring the submission of the issue of punitive damages to the jury.”
Wise, 315 S.C. at 276, 433 S.E.2d at 859.
If the at-fault driver received a traffic citation, your demand letter should highlight this. A citation for running a red light, speeding, or failure to yield makes the insurance company’s liability position much weaker. It also opens the door to punitive damages if the conduct was egregious enough. Your attorney can use this leverage to push for a significantly higher settlement. For more on proving fault, see our article on types of negligence in South Carolina.
Step 3: Negotiate From a Position of Strength
Settlement negotiation is rarely a one-round process. After receiving your demand letter, the insurance adjuster will typically respond with a second offer. That offer will likely still be below what your case is worth. This back-and-forth is normal. Patience and persistence are essential.
During negotiations, the insurance company may request additional documentation. They might ask for updated medical records, an independent medical examination, or proof of lost wages. Respond promptly but carefully. Every document you provide should strengthen your case rather than give the adjuster ammunition to devalue it.
An experienced attorney brings significant advantages to this process. Attorneys understand what similar cases have settled for in your area. They know how to present evidence in the most persuasive way. Most importantly, the insurance company knows that an attorney-represented claimant is prepared to go to court if negotiations fail. That willingness changes the entire dynamic of the conversation.
Keep in mind that South Carolina follows a modified comparative negligence rule. Under S.C. Code § 15-38-15, your recovery is reduced by your percentage of fault. If you are 51 percent or more at fault, you recover nothing. The insurance company will try to shift blame onto you to lower the settlement amount. Strong evidence of the other driver’s fault prevents this strategy from working.
Step 4: File a Lawsuit If Negotiations Stall
Sometimes the insurance company refuses to offer a fair settlement no matter how strong your evidence is. When that happens, filing a personal injury lawsuit is the next logical step. Filing a lawsuit does not necessarily mean your case will go to trial. In fact, the vast majority of personal injury cases still settle before trial. However, filing shows the insurance company that you are serious.
South Carolina’s statute of limitations gives you three years from the date of the accident to file a personal injury lawsuit under S.C. Code § 15-3-530. Missing this deadline permanently bars your claim. Claims against government entities have a shorter two-year window under the South Carolina Tort Claims Act. Do not wait until the last minute. Filing early preserves evidence and gives your attorney time to build the strongest possible case.
Once a lawsuit is filed, the case enters the discovery phase. Both sides exchange documents, take depositions, and gather expert testimony. Discovery often reveals information that was not available during pre-litigation negotiations. Medical expert opinions, accident reconstruction reports, and the defendant’s own statements under oath can dramatically increase the value of your case.
South Carolina’s offer of judgment rule under Rule 68, SCRCP, also plays a strategic role during litigation. Either party can file a formal offer of judgment at least twenty days before trial. If the opposing party rejects that offer and then receives a less favorable result at trial, they may owe court costs and interest from the date of the rejected offer. Your attorney can use this rule strategically to put additional pressure on the insurance company to settle fairly.
Step 5: Consider Mediation or Alternative Dispute Resolution
If direct negotiations reach a dead end but both sides want to avoid a full trial, mediation offers a middle path. In mediation, a neutral third party helps both sides work toward a settlement. The mediator does not decide the case. Instead, they facilitate conversation and help each side see the strengths and weaknesses of their position.
Mediation is often faster and less expensive than going to trial. Many South Carolina courts encourage or require mediation before a case proceeds to trial. The process is confidential, which means nothing said during mediation can be used against you later if the case does go to court.
Arbitration is another option. Unlike mediation, an arbitrator hears evidence from both sides and issues a binding decision. This process is more formal than mediation but still faster than a full trial. Some insurance policies include mandatory arbitration clauses. Your attorney should review your policy to determine whether arbitration applies to your claim.
Both mediation and arbitration can produce fair results when the parties are willing to negotiate in good faith. However, neither process works well if the insurance company is acting unreasonably. In those situations, proceeding to trial may be the only way to get the compensation you deserve.
What If the Insurance Company Acts in Bad Faith?
South Carolina law imposes a duty of good faith and fair dealing on insurance companies. When an insurer unreasonably refuses to pay a valid claim, the injured person may have a separate cause of action for bad faith. The South Carolina Supreme Court recognized this tort in its landmark decision Nichols v. State Farm Mutual Automobile Insurance Co., 279 S.C. 336, 306 S.E.2d 616 (1983). The Court held:
“We hold today that if an insured can demonstrate bad faith or unreasonable action by the insurer in processing a claim under their mutually binding insurance contract, he can recover consequential damages in a tort action. Actual damages are not limited by the contract. Further, if he can demonstrate the insurer’s actions were willful or in reckless disregard of the insured’s rights, he can recover punitive damages.”
Nichols, 279 S.C. at 340, 306 S.E.2d at 619.
The Court in Nichols built on the earlier “Tyger River Doctrine” from Tyger River Pine Co. v. Maryland Casualty Co., 170 S.C. 286, 170 S.E. 346 (1933), where the Court first held that an insurer’s unreasonable refusal to settle subjects the insurer to tort liability. The Court stated that an insurer owes the duty of settling a claim “if that was the reasonable thing to do.” Tyger River, 170 S.C. at 294, 170 S.E. at 349. Together, these cases establish that South Carolina insurers face real consequences for treating claimants unfairly.
The Court further confirmed the elements of a bad faith claim in Howard v. State Farm Mutual Automobile Insurance Co., 316 S.C. 445, 450 S.E.2d 582 (1994). To prove bad faith, a claimant must show four elements: the existence of a mutually binding insurance contract, the insurer’s refusal to pay benefits due under the contract, that the refusal resulted from bad faith or unreasonable action, and that it caused damage to the insured. Howard, 316 S.C. at 451, 450 S.E.2d at 586. If the insurer’s conduct was willful or reckless, punitive damages are also available. Id.
Beyond the common law, South Carolina’s Improper Claims Practices statute, S.C. Code § 38-59-20, identifies specific insurer behaviors that constitute improper claim practices. These include knowingly misrepresenting policy provisions, failing to promptly investigate and settle claims, offering substantially less than amounts reasonably due, and any practice that constitutes an unreasonable delay in paying or settling claims. While this statute does not create a private right of action on its own, it provides a framework for identifying bad faith conduct that supports a Nichols claim.
Common Insurance Company Tactics After You Reject an Offer
Insurance companies use predictable strategies when a claimant rejects their initial offer. Understanding these tactics helps you avoid common traps that could weaken your case.
Delay tactics. The adjuster may slow down communication after you reject the offer. They hope that financial pressure from unpaid medical bills and lost wages will force you to accept a lower amount. Do not let delays push you into a bad decision. Your attorney can keep the process moving forward.
Requesting unnecessary information. The insurance company may ask for broad access to your medical history, social media accounts, or unrelated financial records. They are looking for anything they can use to argue that your injuries were pre-existing or that you are not as hurt as you claim. Only provide what is directly relevant to your claim.
Shifting blame. Adjusters frequently argue that you share fault for the accident. Under South Carolina’s comparative negligence system, even a small percentage of fault reduces your recovery. The insurance company will look for any evidence that you contributed to the crash. Strong documentation and witness testimony help counter these arguments.
Disputing medical treatment. Insurers may claim that your treatment was excessive or unnecessary. They might hire their own medical expert to review your records and provide an opinion that contradicts your treating doctor. Your attorney can prepare your medical providers to support the necessity of every treatment you received.
“Take it or leave it” pressure. Some adjusters present their offer as final to intimidate you into accepting. In reality, insurance companies almost always have room to increase their offers. An attorney who is prepared to file a lawsuit takes away the power of this tactic. For more on how insurance companies operate, see our article about the role of insurance companies in auto accident cases.
Mistakes to Avoid After Rejecting a Settlement
The period after rejecting a settlement is critical. Several common mistakes can damage your case if you are not careful.
First, do not stop medical treatment. Gaps in your treatment records give the insurance company an argument that your injuries were not serious. Follow your doctor’s recommendations and attend every scheduled appointment.
Second, do not post about your accident or injuries on social media. Insurance adjusters routinely monitor claimants’ Facebook, Instagram, and other accounts. A photo of you at a social event can be used to argue that your injuries do not affect your daily life, even if the photo tells a very different story than the reality.
Third, do not give a recorded statement to the insurance company without your attorney present. Adjusters are trained to ask questions designed to get you to minimize your injuries or admit partial fault. Anything you say in a recorded statement can be used against you later.
Finally, do not wait too long to take action. The three-year statute of limitations under S.C. Code § 15-3-530 is a hard deadline. Once it passes, your right to file a lawsuit disappears permanently. Even if negotiations are ongoing, your attorney should monitor this deadline closely. Learn more about protecting your claim in our guide on steps to take at an accident scene.
How Long Does It Take to Settle After Rejecting an Offer?
There is no single answer to this question. Every case moves at a different pace depending on the complexity of your injuries, the strength of your evidence, and the insurance company’s willingness to negotiate fairly.
Some cases settle within weeks of sending a strong counteroffer backed by solid evidence. Others take months of back-and-forth negotiation. If a lawsuit is filed, the case could take one to two years or longer to reach resolution through trial or a pre-trial settlement.
Several factors affect the timeline. Cases with clear liability and well-documented injuries tend to settle faster. Cases involving disputed fault, multiple defendants, or catastrophic injuries that require extensive medical evidence take longer. The court’s schedule also plays a role once a lawsuit is filed.
While waiting can be frustrating, rushing to settle often costs you money. A case that takes six more months to resolve properly may yield tens of thousands of dollars more than a quick settlement accepted under pressure. Your attorney can help you weigh the value of continued negotiation against the cost of waiting.
Contact Klok Law Firm LLC
Rejecting a low insurance settlement takes courage. It also takes strategy. The steps you take after saying “no” determine whether you end up with fair compensation or continue fighting an uphill battle on your own.
South Carolina law provides powerful protections for injured people. The Supreme Court’s decisions in Nichols, Tyger River, and Howard ensure that insurance companies face real consequences for acting in bad faith. The Edwards and Boan decisions protect your right to full compensation for pain, suffering, and lost enjoyment of life. Under Wise v. Broadway, a driver who broke the law and caused your accident is negligent as a matter of law.
At Klok Law Firm LLC, we represent accident victims in Charleston, Mount Pleasant, and throughout the South Carolina Lowcountry. We handle the negotiations, build the evidence, and prepare every case as if it is going to trial. That preparation is what drives insurance companies to offer fair settlements.
Call us today at (843) 701-1695 or contact us online to schedule a free consultation. Let us review the offer you rejected and show you what your case is truly worth.
This blog post is for informational purposes only and does not constitute legal advice. Each case involves unique circumstances that require consultation with a qualified attorney. For specific guidance on your insurance settlement dispute, contact an experienced South Carolina personal injury lawyer.