Detailed answer — your options and the steps to take

When an insurance company’s highest settlement offer won’t pay for your medical care and lost wages, you have several options in New Jersey. Which option fits depends on the type of claim (auto accident, workplace injury, third-party liability, etc.), the evidence you have, and how close you are to the deadline to sue. Below are practical steps and legal routes people commonly use.

1. Review the offer and gather documentation

Don’t accept the first offer automatically. Ask the insurer for a written explanation of how they calculated the offer. Collect and organize your records: medical bills, treatment notes, proof of missed work and pay stubs, receipts, photographs, police reports, and any communication with the insurer or other parties. Strong documentation improves negotiating power.

2. Send a demand letter

Prepare a clear demand letter that summarizes the accident or incident, lists your medical treatment and lost wages, attaches supporting records, and states the settlement amount you seek. This formalizes your position and often prompts a higher offer. Many attorneys draft and send demand letters on a contingency basis (they get paid only if you recover money).

3. Negotiate or request mediation

Insurers often expect some negotiation. You can counteroffer or ask for mediation. Mediation is a structured settlement discussion with a neutral mediator. Courts and many insurers use mediation to reach resolution without a lawsuit. Mediation can be faster and less expensive than going to court.

4. Consider hiring a lawyer

If serious medical care or substantial lost wages are at stake, consult an attorney experienced in personal injury or insurance claims. In New Jersey, many injury lawyers work on contingency: they advance costs and are paid a percentage only if you recover. An attorney can value your claim, handle negotiations, obtain medical records, calculate future loss of earnings, and, if necessary, file suit.

5. File a lawsuit before the statute of limitations expires

If negotiations fail, you can sue the at-fault party (or their insurer) for damages. For most personal injury claims in New Jersey you must file suit within two years from the date of injury. That deadline is strict: missing it will typically bar your case. See New Jersey’s statute of limitations for personal injury claims: N.J.S.A. 2A:14-2. If your claim involves different legal rules (for example, medical malpractice or certain government claims), shorter or different time limits may apply, so check the specific statute or consult a lawyer promptly.

6. Use administrative remedies when applicable (workers’ compensation)

If your injury happened at work, workers’ compensation usually covers medical care and wage replacement. You typically cannot sue your employer in most circumstances for workplace injuries; instead, you file a workers’ compensation claim with the New Jersey Division of Workers’ Compensation. Learn more about filing a claim here: NJ Dept. of Labor – Workers’ Compensation.

7. File a complaint with the state insurance regulator

If you believe the insurer acted unfairly, unreasonably, or in bad faith, you can file a complaint with the New Jersey Department of Banking and Insurance (DOBI). DOBI can investigate patterns of bad practice and sometimes help resolve disputes. File a complaint or learn the process here: NJ Dept. of Banking & Insurance.

8. Preserve health-care and government benefit liens

If you received treatment through Medicare, Medicaid, or a health insurer, those payors may have a right to be reimbursed from any recovery. Tell your lawyer about any third-party payors so they can preserve and negotiate lien issues. Proper handling of liens affects the actual money you can keep from a settlement.

9. Evaluate cost vs. benefit and timing

Suing takes time, expense, and risk. Consider the likely range of recovery, attorney costs, and how long litigation could take. For modest claims, alternative dispute resolution or small claims court (where applicable) can be faster and cheaper.

10. Keep negotiating until resolution or filing suit

Even after a lawsuit begins, parties often settle. Filing suit can change leverage. If you have a reasonable claim and documentation, a lawyer can often increase the insurer’s offer or force a better resolution through litigation pressure.

When to act quickly

• If your medical bills keep growing or you still need ongoing treatment.
• If you rely on the lost wages to pay bills.
• If the statute of limitations is approaching (commonly two years for personal injury).
• If your insurer’s conduct appears unreasonable or intentionally obstructive.

Acting promptly preserves evidence, witnesses, and legal options.

Useful official New Jersey links

• Personal injury statute of limitations: N.J.S.A. 2A:14-2
• New Jersey Dept. of Banking & Insurance (file an insurance complaint): https://www.state.nj.us/dobi/
• Workers’ compensation information: NJ Dept. of Labor – Workers’ Compensation
• New Jersey Courts — alternative dispute resolution and resources: https://www.njcourts.gov/selfhelp/alt_dispute_resolution.html

Short takeaway: Don’t accept a low offer without documenting your full losses, trying negotiation or mediation, and consulting an attorney if the amounts are significant. Preserve your right to sue before the statute of limitations expires.

Helpful hints

• Keep a claims folder: save all medical bills, treatment notes, photos, and employer statements about missed work.
• Get a written explanation: ask the insurer how they calculated the offer and what they exclude.
• Ask your provider about liens: find out if hospitals or health plans expect repayment from any settlement.
• Document lost wages: get employer letters, paystubs, and proof of any efforts to return to work.
• Use mediation early: it can lead to faster, lower-cost resolution than litigation.
• Consider an attorney consultation: most personal injury attorneys offer free case evaluations and work on contingency.
• Don’t miss deadlines: find out the applicable statute of limitations for your claim and act before it expires.
• File an insurance complaint if you suspect bad faith: the state regulator can investigate unfair practices.