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Does Verbal Acceptance of an Insurance Settlement Offer End Negotiations in Maryland?
Posted on behalf of Peter T. Nicholl in Car Accidents Published on July 6, 2021 and updated on April 29, 2026.
This is a difficult question to answer, as some verbal agreements may be binding while others might not be. It is important to note that if a settlement offer is binding, you may have lost the right to negotiate for more compensation or file a lawsuit over your crash.
Is a verbal settlement agreement legally binding?
A verbal settlement agreement may be legally binding if it includes an offer, acceptance, and an exchange of value, but it can still be challenged depending on the circumstances. Insurance companies may attempt to enforce verbal agreements using recordings or written records of conversations, even if nothing was signed. The Law Offices of Peter T. Nicholl can help determine whether a verbal agreement is enforceable and whether you may still be able to negotiate for additional compensation.
One of the most important steps you can take is to contact a lawyer before having any more conversations with the insurance company. An experienced lawyer can help determine if you may still be able to negotiate and he or she may be able to negotiate on your behalf.
The bottom line is: if you have yet to sign anything, you may still be able to negotiate for more compensation. You should strongly consider meeting with a local car accident lawyer in Baltimore. The lawyers at The Law Offices of Peter T. Nicholl have extensive legal knowledge and are committed to doing what is in your best interests.
Schedule a free legal consultation today. We are here to help. 410-297-0343
Is a Verbal Agreement Binding?
It might be, depending on the details of the agreement. Generally, a verbal agreement could be enforced if there was an offer, acceptance of the offer and consideration, which refers to the value exchanged between both parties.
However, either party may be able to challenge a verbal agreement in court. If you verbally agreed to a settlement with a car insurance company, it raises the question of whether the insurance company would defend this in court if challenged.
Typically, verbal acceptance of a settlement offer would occur over the phone. Insurance companies often call crash victims and make settlement offers that are far below the full value of a claim. If a victim accepts a settlement offer in person, such as at an insurance company office, he or she is likely to sign it soon after.
You may be thinking the insurance company may have difficulty proving a phone conversation. However, if you accepted a settlement offer, they most likely wrote this down. Insurance companies often ask to record conversations about a car crash claim, so they could use this recording to try to enforce the terms of the settlement.
Emails or text messages about a settlement could also go a long way in allowing an insurance company to enforce a verbal settlement agreement.
Can I Rescind the Offer?
You may be able to rescind the offer and negotiate for more compensation. However, you should try to do this soon after giving verbal acceptance of the offer. The insurance company may try to use a delay against you if the settlement agreement is challenged in court.
It is important to discuss this issue with a licensed attorney as he or she should be able to advise you on how to rescind your acceptance of the offer. If you formally rescind the offer your lawyer may be able to negotiate for full compensation on your behalf.
Signing a Settlement Offer Likely Ends the Claim
It is very difficult to get out of a signed settlement offer. You would need to prove the insurance company committed some type of fraud or coerced you into signing. This would be very difficult to do, and the burden of proof would probably fall on you. If signed contracts cannot hold up, it would be very difficult for business to be conducted.
Once you sign a settlement, you have not only agreed to accept the compensation the insurance company is offering. You have also agreed to release the insurance company from any future liability for damages from the accident. That means you could not file another claim over the same accident to seek more compensation.
You may be wondering: What happens if my injury gets worse or I suffer complications?
Unfortunately, you would still be unable to seek more compensation from the insurance company. If another party bears some amount of fault for the crash, you may be able to file a claim against them. However, this is a different claim from the one you settled. You would only be able to obtain compensation for this other party’s percentage of fault in your accident.
That is why it is so important to make sure a settlement offer provides full compensation. Those who hire attorneys often recover more compensation than those who do not.
Initial Settlement Offers Are Often Too Low
The first settlement offer from the insurance company is often much too small to cover all your damages. The insurance company is hoping you will just accept it and move on. They know it is difficult to determine the full value of a claim so early in the process, and they know victims do not have the time to fully assess their damages.
Frequently Asked Questions About Verbal Acceptance of a Settlement in Maryland
Is a verbal acceptance of a settlement legally binding?
Yes, a verbal acceptance of a settlement can be legally binding in certain circumstances. Courts may enforce an agreement if there was a clear offer, acceptance and mutual understanding of the terms. However, disputes often arise over whether all material terms were agreed upon and whether the parties intended to be bound without a written agreement.
Can I change my mind after verbally agreeing to a settlement?
In some cases, it may be difficult to change your mind after verbally accepting a settlement. The enforceability depends on whether a valid agreement was formed and whether essential terms were clearly established. The Law Offices of Peter T. Nicholl can evaluate whether the circumstances allow you to withdraw or challenge the agreement.
What makes a verbal settlement agreement enforceable?
A verbal settlement agreement may be enforceable if there is evidence of a definite offer, acceptance and agreement on key terms such as payment and scope of release. Courts may also consider communications between attorneys or parties. The legal issue is whether the agreement was sufficiently clear and intended to resolve the dispute.
Does a settlement need to be in writing to be valid?
No, a settlement does not always need to be in writing to be valid, but written agreements are strongly preferred. Some types of claims or court rules may require written documentation, especially in complex or high-value cases. The Law Offices of Peter T. Nicholl can determine whether a verbal agreement meets legal requirements in Maryland.
What happens after a verbal settlement is reached?
After a verbal settlement is reached, the parties typically prepare a written agreement outlining the terms, including payment, release of claims and any conditions. Delays or disputes may arise if one side disagrees with how the terms are documented. The written agreement is usually required before funds are disbursed and the case is formally resolved.
Can a verbal settlement be disputed or challenged?
Yes, a verbal settlement can be disputed if there is disagreement about the terms, authority to settle or whether a binding agreement was formed. Courts may review communications, testimony and conduct of the parties to determine enforceability. The Law Offices of Peter T. Nicholl can assess whether there are grounds to challenge or enforce the agreement.
How do courts determine if a verbal settlement is valid?
Courts evaluate whether there was a clear meeting of the minds on all material terms and whether both parties intended to be bound. Evidence may include emails, recorded conversations, attorney communications and conduct following the agreement. The focus is on whether the agreement was definite enough to be enforced.
Should I speak with a lawyer before accepting a settlement offer?
Yes, you should speak with a lawyer before accepting a settlement offer, especially in injury or malpractice cases. Accepting a settlement may waive your right to pursue additional compensation, even if the full extent of your damages is not yet known. The Law Offices of Peter T. Nicholl can review the terms and implications before you agree.
Need Help After a Car Crash? Call The Law Offices of Peter T. Nicholl
At The Law Offices of Peter T. Nicholl, we know crash victims often have many questions about what to do following a crash and how much compensation may be available. For more than three decades, our firm has been helping victims of crashes and other situations caused by negligence. In that time, we have secured millions in compensation on their behalf.
Schedule a free consultation to get answers to your questions and learn more about how we may be able to assist you. We work on contingency, which means no upfront fees and no risks to you.
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