What Are Your Legal Options After Verbally Accepting a Settlement?

After an accident, the insurance company may contact you with a settlement offer. It might seem like a quick and easy way to secure compensation, especially when faced with mounting medical bills and lost wages. However, if you verbally accept an offer and realize it doesn’t fully cover your damages, you may wonder if you can back out.

The good news is that verbal acceptance is not always the final word, so understanding New Jersey’s legal stance on verbal settlements and your options is crucial.

A settlement offer should never be accepted hastily, especially when dealing with insurance companies whose primary goal is to minimize payouts. Many accident victims accept lowball offers without realizing the long-term financial consequences. You can make informed decisions about your claim by understanding how New Jersey law treats verbal agreements.

Is a Verbal Settlement Agreement Legally Binding in New Jersey?

In New Jersey, settlement agreements in personal injury cases are generally put in writing. However, verbal agreements may still carry legal weight under certain circumstances.

A verbal settlement can be enforceable if:

• Both parties clearly agreed on the terms, including the amount and the release of liability.
  
• The insurance company recorded the conversation where you verbally accepted the offer.
  
• There is sufficient evidence that you intended to accept the settlement and end negotiations.

That said, New Jersey courts often favor written agreements over verbal ones, especially in complex matters like personal injury claims.

Without a written agreement, misunderstandings and disputes are more likely. Suppose an insurance adjuster claims that your verbal acceptance is binding. In that case, you may have the right to challenge it, particularly if the acceptance was made under pressure or without full knowledge of the damages you sustained.

When Can You Challenge a Verbal Settlement?

Even if you verbally accepted a settlement offer, there are several circumstances where you may be able to challenge or renegotiate:

• You were misled or pressured: If the insurance adjuster pressured you into accepting the offer without fully explaining its terms, you may have grounds to contest it.
  
• You didn’t understand the full extent of your injuries: New Jersey follows a two-year statute of limitations (N.J.S.A. 2A:14-2) for personal injury claims, meaning you have time to seek further medical evaluations. If new injuries or complications arise after your verbal acceptance, you may have the right to reopen your claim.
• No written confirmation was signed: The insurance company may have difficulty enforcing a verbal settlement without a signed release.
  
• You revoked your acceptance before signing: If you quickly notified the insurer that you changed your mind, they might still be open to further negotiations.

Another key consideration is the nature of the conversation. If an insurance representative downplayed the seriousness of your injuries or implied that you had no other option but to accept, this could be considered a bad-faith negotiation. Insurance companies must act in good faith when handling claims, and any evidence that they misled you could strengthen your case for renegotiation.

Steps to Take If You Regret Accepting a Verbal Settlement

If you’ve accepted a verbal settlement and want to explore your options, here’s what you should do:

1. Act Quickly – If you change your mind, notify the insurance company immediately before signing any documents.
   
2. Avoid Signing Anything – If you haven’t signed a release of liability, you likely still have an opportunity to negotiate.
   
3. Document Everything – Keep records of all communications with the insurance company, including emails, letters, and call logs.
   
4. Consult an Attorney – A personal injury lawyer can evaluate your case and determine if the verbal agreement can be contested.

It is also essential to carefully review any correspondence from the insurance company. Sometimes, insurers send paperwork designed to formalize verbal agreements without clarifying them. If you receive any documents related to your settlement, do not sign them until you consult an attorney.

Additionally, legal action may be necessary if you suspect you were coerced into accepting an unfair offer. 

Can You Still Negotiate After a Verbal Agreement?

In many cases, yes. Insurance companies may present a verbal settlement as the final offer, but that’s not always true. If no written agreement has been signed, you may still be able to:

• Request a higher settlement amount based on new medical evaluations.
• Reopen discussions if you believe the settlement was accepted under duress.
• File a lawsuit if the insurance company refuses to negotiate further.

Additionally, insurance companies often attempt to use recorded calls to prove a binding settlement. However, you may still have room to negotiate unless you clearly agree to waive your right to further compensation.

If an insurance company refuses to continue negotiations, your attorney can apply legal pressure. Insurers are often more willing to negotiate when they know an experienced lawyer is involved.

Why Written Agreements Are Safer

A written settlement agreement ensures that all terms are clear and mutually agreed upon, reducing the risk of misunderstandings. Before signing anything, you should:

• Review all terms carefully – Ensure the settlement covers all medical expenses, lost wages, and future costs.
  
• Consult with a lawyer – An experienced attorney can help you determine whether the offer is fair and in your best interest.
  
• Consider long-term consequences – Once you sign a release, you generally cannot pursue additional compensation for the same incident.

Written agreements also provide better protection in cases where injuries worsen over time. If your injuries require ongoing treatment, a rushed verbal settlement might not account for future medical expenses. This is one of the main reasons attorneys recommend never accepting an offer before fully understanding the scope of your damages.

Need Help? Book a Free Consultation Today

You may still have options if you’ve verbally accepted a settlement and now have second thoughts. At Rosengard Law Group, we understand how insurance companies operate and are prepared to fight for the compensation you deserve.

Don’t let an insurance company pressure you into an unfair settlement. Contact us today for a free consultation, and let us review your case.