A second settlement offer is made if a first personal injury claim compensation offer has been rejected.
In the vast majority of cases, you’ll reject an initial compensation offer because it’s too low. A defendant’s insurance company will often make multiple offers, trying to persuade you to take less compensation for a faster payout. However, if you stand firm, especially if you have a strong case, you may be able to negotiate for more compensation.
Understanding the process and legal implications of rejecting an initial offer and negotiating a second settlement is key to securing fair compensation. In this guide, we explain what a second settlement offer is, outline how the negotiation process works, and look at how long it typically takes in the UK. We’ll also explain how Injury Lawyers 4u can support you throughout your personal injury claim.
What is a second settlement offer?
A second settlement offer is made when a claimant (the person making the compensation claim) rejects the first compensation offer made by the defendant (the business/organisation the claim is made against). In most cases, it is the defendant’s insurer that makes the initial offer.
Often, a first compensation offer is lower than what the claim is actually worth, as the defendant’s insurer will likely aim to settle the case quickly and for as little money as possible. When a claimant, often with the help of a solicitor, negotiates for a higher amount, the insurer may respond with an increased offer.
Negotiation usually involves submitting additional evidence, such as medical reports and proof of financial losses, alongside a counteroffer from the claimant’s legal team. If the insurer is persuaded by the strength of the evidence, they’re more likely to make a second offer that better reflects the true value of the claim.
Personal injury settlement negotiation is an important stage in the claims process, as it often determines whether a fair settlement can be reached without resorting to court proceedings. Insurers will most often try to avoid taking a case to court as it can become costly. So, if they believe they’re likely to lose the case, they’re often more willing to improve their offer.
You can use our compensation calculator to get an idea of how much compensation you could be due if you’ve been injured.
Why does it take time to receive a second settlement offer?
The timeline for receiving a second settlement offer can vary for several common reasons, such as:
- The complexity of the case: Claims involving minor injuries and clear liability tend to move more quickly. Cases with multiple injuries or disputed liability often take longer to resolve.
- The availability of medical reports and evidence: Insurers rely on medical assessments and supporting documents to understand the extent of your injuries and who was at fault. If more evidence is requested, this can delay the process.
- The insurer’s internal review process: Once a counteroffer is submitted by the claimant (usually by their legal team) the insurance company will conduct internal reviews. Often this involves multiple adjusters or legal teams, which can slow down the process.
- The legal negotiations between solicitors: If both parties have legal representation, there may be back-and-forth discussions over liability, compensation, and settlement terms. These negotiations can take time to conclude.
How long does it take to get a second settlement offer in the UK?
How long does settlement negotiation take? The time it takes to receive a second settlement offer depends on the specifics of your case, but this is a general estimate:
- Straightforward cases: In simple claims where liability is clear and medical evidence is readily available, a second offer may arrive within a few weeks of rejecting a first settlement offer.
- Moderately complex cases: If the case involves moderate injuries, disputed liability, or requires additional documentation, it could take a month to several months before a second offer is received.
- Cases requiring extensive medical evidence: In claims involving serious or long-term injuries requiring ongoing medical assessments, it can take many months or even over a year to receive a second offer.
The quicker you make a personal injury claim after you’ve been injured, the faster you’ll receive the initial offer. You typically have three years from the date of your injury to start a claim. However, there are some exceptions to this time limit, such as for children or those who lack mental capacity.
What should you do while waiting for a second offer?
While waiting for a second settlement offer, it’s important to remain proactive. Sensible steps to take include:
- Continue to gather medical evidence: If your injuries require ongoing treatment, keep collecting medical reports, receipts and other relevant documents. A diary or journal can also be helpful for recording your symptoms, progress and the impact the injury has had on your life.
- Follow your solicitor’s advice: Your solicitor will advise you on whether to wait for further offers or accept an offer. Their expertise is invaluable in determining whether the compensation amount is fair or whether you should continue to negotiate for more.
- Avoid rushing into a decision: Insurance companies may try to get you to settle quickly, often for less than your claim is worth. Staying patient gives you the best chance of receiving the full compensation you’re entitled to.
How do you know if a second settlement offer is fair?
To assess whether a second settlement offer is fair, consider:
- How it compares to your total damages: The offer should at least cover all your losses, including your medical expenses, loss of income, and your rehabilitation costs.
- Your future financial losses: If your injuries are likely to affect your ability to work or require ongoing treatment, make sure the offer takes these long-term costs into account.
- Legal advice: Your solicitor will not only handle negotiations on your behalf, but will also be able to judge whether the offer reflects the true value of your claim. They’ll consider similar cases and the strength of your evidence before advising you.
What happens if you reject the second offer?
If the second settlement offer still doesn’t fairly reflect your losses and future needs, further negotiations may be needed. This could lead to one or more of the following:
- A third settlement offer is made: The defendant’s insurer may be willing to increase their offer further, especially if additional evidence strengthens your claim.
- A Part 36 offer (UK) is made: Under UK law, a Part 36 offer includes financial incentives to accept, such as covering legal costs. These offers should be carefully reviewed with your solicitor. If you reject the offer but later win less in court, you may have to pay some of the defendant’s legal fees.
- Court proceedings begin: If negotiations fail to produce a fair settlement and you reject the second offer from the insurance company, your case may proceed to court. While this extends the timeline, it can sometimes be necessary to secure the compensation you deserve.
How legal expertise can help secure a better settlement
Negotiating legal settlements is something that clearly benefits from expertise and experience. While you can negotiate directly with a defendant’s insurance company, having a knowledgeable legal expert on your side can significantly improve your chances of securing a better outcome.
If you’re looking to make a personal injury claim or need help negotiating with an insurer, we’re here for you. At Injury Lawyers 4u, we use our legal knowledge and experience to guide you through the personal injury claims process, handle complex negotiations on your behalf, and represent you in court if needed. We’ll work to ensure you receive the maximum compensation available. And with our no-win, no-fee promise, you’ll only pay us if your claim is successful.