How to Contest an Insurance Company’s Final Offer After an Injury (Tennessee)

Disclaimer: This is for general information only and is not legal advice. I am not a lawyer. If you have a serious claim or questions about deadlines, releases, or litigation, consult a licensed Tennessee attorney.

Quick answer

If you disagree with the insurer’s final offer after an injury, do not sign a release or cash a settlement check. Instead, review your policy, document your losses, send a timely written demand or counteroffer, use the policy’s dispute procedures (appraisal, mediation, or arbitration) if available, file a complaint with the Tennessee Department of Commerce & Insurance, and—if needed—file a lawsuit before your claim deadline expires. Keep careful records and consider hiring a Tennessee personal-injury attorney if the claim has significant value or complicated legal issues.

Detailed answer — Step-by-step process under Tennessee law

1. Pause and preserve evidence

Do not sign any release, agree to a final payment, or accept a “final offer” until you understand what it covers. Preserve evidence: photographs, medical records, bills, wage statements, repair estimates, police reports, and all communications with the insurer (emails, letters, voicemails). These items are the foundation of any further negotiation or legal action.

2. Review your insurance policy and the insurer’s position

Read the relevant policy sections (liability limits, medical-payments, uninsured/underinsured motorist, property damage, consent-to-settle, appraisal, and arbitration clauses). The insurer’s “final offer” should state what damages it considered and what defenses it asserts. If the insurer bases the offer on policy limits or coverage exclusions, confirm whether those facts are correct.

3. Compare damages and explain the gap

Make a damage worksheet showing past and expected medical costs, lost wages, future care needs, pain and suffering, and property loss. Send a concise written counteroffer or supplemental demand that explains the gap between your losses and the insurer’s offer and attaches supporting documents (doctor letters, bills, wage documentation, repair invoices).

4. Use contractual dispute tools (appraisal, mediation, arbitration)

Many Tennessee insurance policies include dispute-resolution clauses:

• Appraisal: Common in property damage cases. If your policy has an appraisal clause, follow its procedures to have competing appraisers and an umpire determine value.
• Mediation: Some policies or pre-suit agreements call for mediation. Mediation is a neutral negotiation that can produce a better outcome than a unilateral final offer.
• Arbitration: Binding arbitration can resolve the dispute without a court trial. It is typically faster but limits appeals.

Follow the exact steps and timeframes in the policy. If the insurer ignored the policy process, note that in future negotiations or litigation.

5. File a regulatory complaint with the Tennessee Department of Commerce & Insurance

If you suspect unfair settlement practices or a refusal to communicate, you can file a complaint with the Tennessee Department of Commerce & Insurance (TDCI). The department can investigate insurer practices and sometimes prompt a re-review. File at: Tennessee Department of Commerce & Insurance — File a Complaint.

6. Consider a bad-faith or statutory claim

Tennessee law provides remedies for insurers who act unreasonably in adjusting claims. If the insurer refused to pay a reasonable settlement within policy limits, misrepresented facts, intentionally delayed, or ignored key medical evidence, an insured or an injured third party may have a cause of action. These claims can be legally complex and fact-specific. Consult a Tennessee attorney to evaluate bad-faith theories and potential damages.

7. Track deadlines — investigate civil filing deadlines

Court deadlines (statutes of limitations) and contractual notice requirements may bar a later lawsuit if you wait too long. Do not delay seeking counsel if the insurer’s final offer is low and the claim is substantial. For help finding Tennessee statutes and court procedures, see the Tennessee courts website: Tennessee Administrative Office of the Courts.

8. Prepare to file suit if necessary

If negotiation, appraisal, mediation, or regulatory complaints do not resolve the dispute, you can file a civil lawsuit in the proper Tennessee court. An attorney can draft the complaint, preserve evidence, and pursue damages. Most personal-injury lawyers handle injury claims on a contingency-fee basis, meaning they advance costs and recover fees only if you recover money.

9. Do not waive future claims unintentionally

Be careful with releases and partial settlements. A broad release may bar later claims for future medical issues that relate to the injury. If you accept a small-payment “final offer,” ensure the release only covers what you intend.

When to hire a Tennessee attorney

Consider hiring a lawyer if:

• Your medical bills or lost wages are substantial.
• The insurer claims you bear fault or disputes coverage.
• The insurer uses complex legal defenses or appraisal/arbitration clauses you do not understand.
• You receive a demand to sign a full release or a payment marked “final.”

Practical examples (hypothetical)

Example A — Car crash, small offer: You sustained $12,000 in medical bills and lost wages. The insurer makes a “final offer” of $3,500 and asks you to sign a full release. You should refuse, send documentation showing the $12,000 losses, request reconsideration, and advise the insurer you will pursue appraisal/mediation or litigation if necessary. Do not sign a release until you are sure the offer covers all current and likely future costs.

Example B — Property damage, appraisal clause: An auto-insurance policy offers $1,200 to repair a totaled car; your repair estimate is $3,000. The policy includes an appraisal clause. Demand appraisal per the policy. If the appraisers and umpire value the loss higher, the insurer must pay accordingly.

Helpful Hints

• Do not sign anything that says “final” without the document reviewed by an attorney if the claim is significant.
• Document everything: every medical visit, every bill, every insurer contact. Time-stamped records help prove damages and delay.
• Put important communications in writing. Follow up phone calls with confirmatory emails summarizing what was said.
• Ask the insurer for a written explanation of how it calculated the final offer (what it paid, what it denied, what comparables it used).
• If the insurer claims policy limits prevent a higher offer, ask for proof of the other party’s limits and the insurer’s exposure.
• File a complaint with TDCI if you suspect unfair or deceptive settlement practices: https://www.tn.gov/commerce/insurance/consumer-education/file-a-complaint.html
• Keep medical providers informed. Some providers will place liens for unpaid medical bills if a future settlement occurs.
• If you pursue an attorney, provide all documents promptly. That speeds evaluation and preserves deadlines.

Resources

• Tennessee Department of Commerce & Insurance — consumer complaint portal: https://www.tn.gov/commerce/insurance/consumer-education/file-a-complaint.html
• Tennessee Administrative Office of the Courts — self-help and forms: https://www.tncourts.gov/

Every claim is different. If your injury or damages are significant, consult a Tennessee attorney promptly to protect your rights and avoid missed deadlines.