Can atotal loss settlement offer be rescinded after it has been accepted?

UPDATED: Jun 16, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Jun 16, 2011Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can atotal loss settlement offer be rescinded after it has been accepted?

I was made a settlement offer on the phone yesterday for $10,150. I accepted the offer and scanned and emailed them a copy of the title and my drivers license. The adjuster called me this morning and basically said, “Sorry, we made a mistake and now your offer is $6,050.” Can they do this? I have already entered into a written agreement to purchase a car based on the offer I accepted yesterday.

Asked on June 16, 2011 under Accident Law, Texas


Richard Weaver / The Weaver Law Firm

Answered 11 years ago | Contributor

We would have to examine whether there was a true contract between you and the insurance company. You may also have other remedies or claims, but I would like to talk to you about it.

Feel free to call to discuss.


R.D. Weaver

Attorney At Law

Phone: 866-605-6226

Direct Phone: 713-572-4900


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

You may have good grounds to fight for the larger sum:

1) If there was a firm offer and you unequivocally evidenced acceptance, that would constitute an agreement which is enforceable. Whether this is the case depends on the exact circumstances (e.g. what was said by whom; were there any caveats or reservations; etc.), but from what you write, it may be the case there was an accepted offer. Once accepted, both parties are bound to it.

2) Even without an agreement being formed, if you reasonably relied on the representation as to what you would receive, it *may* be the case that you could hold the insurer liable under the theory of promissory estoppel--sometimes, if party A reasonably relies on a promise made by party B, party B is "estopped" from later denying that promise. This is a "shakier" or less certain ground that the one described above, but you may be able to at least make the argument.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption