Detailed answer — step-by-step process under Pennsylvania law

If an insurance company gives you a “final” settlement offer after an injury and you believe it is too low, you have several options. Below is a clear, practical road map that explains each step, what it means, and what to watch out for under Pennsylvania law.

1) Immediately preserve evidence and documents

Collect and organize everything that proves your injury and losses. Essential items include:

• Medical records, test results, doctor notes, and itemized bills.
• Receipts for out‑of‑pocket expenses (medication, travel, rehabilitation).
• Proof of lost income (pay stubs, employer statements) and any future wage loss estimates.
• Photos of injuries and accident scene; contact info for witnesses.
• All written communication with the insurer, including the written “final” offer.

2) Read the offer and any proposed release carefully

Insurance companies usually ask you to sign a release in exchange for payment. A release can give up your right to pursue further claims. Don’t sign anything until you fully understand what it covers and how much it pays. If the release is too broad, it could bar future claims for medical complications or future needed care.

3) Calculate your real damages before replying

Make a realistic list of damages that the offer should cover:

• Past and reasonably certain future medical costs
• Past and future lost wages
• Property damage (if any)
• Pain and suffering, emotional distress, loss of enjoyment of life

Attach supporting documents to show why your numbers are higher than the insurer’s offer.

4) Send a reasoned demand or counteroffer

Respond in writing with an itemized demand showing how you calculated damages and the evidence that supports each item. Be professional, clear, and concise. Giving a deadline (e.g., 14 days) for a response can help move the process along.

5) Use internal appeals and external complaints

If negotiation stalls, use the insurer’s appeal or complaint procedures. If that does not work, you may file a complaint with the Pennsylvania Insurance Department, which accepts consumer complaints about claim handling and unfair practices: https://www.insurance.pa.gov/Consumers/Complaints/Pages/default.aspx.

6) Consider appraisal or mediation (when available)

For property or certain policy disputes, your policy may include an appraisal or alternative dispute resolution clause. If appraisal is available, it can be a faster, less formal way to resolve differences. Mediation is another option to reach a settlement without filing suit.

7) Evaluate filing a lawsuit — breach of contract and bad faith

If negotiation and administrative routes fail, you can file a civil lawsuit. Two common causes in Pennsylvania are:

• Breach of the insurance contract (if the insurer refuses to pay what the policy requires).
• Bad faith claim under Pennsylvania law, 42 Pa.C.S. § 8371, which can allow recovery of consequential damages and possibly counsel fees if the insurer acted in bad faith. See the statute: 42 Pa.C.S. § 8371.

Note: a bad faith claim has legal standards you must meet; it is not automatic simply because you disagree with a settlement offer.

8) Watch the statute of limitations

In Pennsylvania most personal injury lawsuits must be filed within two years from the date of injury. That time limit is set by 42 Pa.C.S. § 5524. If you miss that deadline, you will likely lose the right to sue: 42 Pa.C.S. § 5524.

9) Consider hiring a lawyer

An attorney who handles personal injury or insurance disputes can:

• Evaluate whether the insurer’s final offer is reasonable.
• Calculate damages including future needs.
• Communicate with the insurer so you don’t accidentally harm your claim.
• File suit and pursue breach or bad faith claims if appropriate.

Most personal injury lawyers in Pennsylvania work on contingency, meaning they get paid only if you recover money.

10) Practical timing and tactics

Don’t rush to accept a low final offer. At the same time, be mindful of deadlines and the statute of limitations. If you’re still in active medical treatment, explain that to the insurer — future treatment costs are relevant. If you accept payment, expect the insurer to ask for a release. If you refuse, clearly set a deadline for their next response.

Illustrative hypothetical

Hypothetical: You are injured in a car crash. Your medical bills total $25,000 and your doctor expects additional treatment costing $15,000. The insurer’s “final” offer is $15,000. You would document current bills, get a written estimate of future care, prepare a demand for $45,000 with supporting records, file a complaint with the Pennsylvania Insurance Department if the insurer refuses to negotiate, and consider an attorney for possible litigation if the insurer denies a reasonable claim.

Helpful hints

• Get everything in writing. Verbal promises are hard to prove.
• Never sign a full release until you understand and have received the agreed payment.
• Be cautious with “final” offers. Treat them as an opening in a negotiation unless they meet your documented losses.
• Track deadlines — appeals, policy notice requirements, and the two‑year statute of limitations matter.
• Ask for a breakdown of how the insurer calculated the offer (medical, wage loss, multipliers for pain and suffering).
• Check for medical liens and subrogation claims (e.g., health insurers, Medicare) that might reduce your net recovery.
• If the claim involves an auto accident and you have PIP or UM/UIM issues, those rules differ — ask an attorney who handles auto claims in Pennsylvania.
• Use the Pennsylvania Insurance Department for consumer guidance and to file complaints: insurance.pa.gov/Complaints.