When should I reject a settlement offer and hold out for more?

You should reject a settlement offer when it does not adequately compensate all of your damages — past, present, and future. Specific situations where rejection is typically appropriate: the offer does not cover your full medical expenses; it fails to account for future medical needs projected by your treating physician; it ignores or undervalues your lost wages and future earning capacity reduction; the non-economic component (pain and suffering) is disproportionately low relative to your documented impairment and lifestyle impact; or the offer was made before you reached maximum medical improvement, when your total damages are not yet known. Conversely, rejection makes less sense when your evidence of fault is weak, your attorney has honestly assessed significant trial risk, the offer approaches the defendant's policy limits, or personal financial circumstances require resolution. The decision should be made with your attorney's candid assessment of the gap between the offer and your realistic trial range.