What to do when an insurer sends a final settlement offer after you were injured

Short answer: Do not sign or accept a “final” payment until you understand what the offer releases, you know your full damages, and you have considered your options: appeal the offer through the insurer’s internal review, request mediation/arbitration if the policy or agreement allows, file a consumer complaint with the Virginia State Corporation Commission’s Bureau of Insurance, or file a civil lawsuit before the Virginia statute of limitations runs. Preserve evidence, get medical records, and talk with a personal injury attorney before making a decision.

Disclaimer

This is general information only and is not legal advice. I am not a lawyer. For advice about your specific situation, consult a licensed Virginia attorney.

Detailed answer — step-by-step approach under Virginia law

1. Pause and read the paperwork

   Carefully review any written offer and the release that accompanies it. Most insurer “final” offers come with a release that, if signed, prevents you from later suing the insured or the insurance company for the same injury. Confirm whether the offer is for “full and final” settlement or a limited payment (e.g., to satisfy medical liens). If the release language is unclear, do not sign it until you get advice.

2. Gather and preserve evidence

   Collect all medical records, bills, diagnostic images, wage records, photos of injuries and scene, police reports, witness names and contact info, and text/emails about the incident. Preserve your phone, vehicle (if relevant), and clothing until advised otherwise. Document ongoing symptoms and treatment. These records are central to showing damages if you contest the offer.

3. Ask the insurer for an itemized explanation

   Request a written explanation of how the insurer calculated the offer, including medical bills, wage-loss calculations, and any offsets or lien reductions. Ask whether the offer includes payment of outstanding medical provider liens or health-plan subrogation claims. An insurer must disclose the basis for its settlement position if you request it during negotiations.

4. Consider negotiation or a counteroffer

   Make a reasoned counteroffer supported by documentation (medical records, bills, expert reports, lost wages). Keep all communications in writing when possible. Don’t be pressured by language indicating the offer will expire in a few hours without a clear reason—short deadlines are common negotiation tactics.

5. Check your policy and any pre-suit requirements

   Some insurance policies or settlements require appraisal, arbitration, or mediation before litigation. Review your policy and any release or pre-suit notices you received. If the policy contains an appraisal clause (more common in property claims), follow the contract steps.

6. File a consumer complaint with Virginia’s insurance regulator

   If you believe the insurer acted unfairly (e.g., denied liability without reason, promised payments and failed to make them, or engaged in bad-faith conduct), you may file a complaint with the Virginia State Corporation Commission, Bureau of Insurance. The SCC’s Bureau of Insurance can investigate consumer complaints and mediate some disputes: https://scc.virginia.gov/pages/Insurance.

7. Consider mediation or arbitration

   Mediation can be a faster, less expensive way to resolve a dispute. Arbitration binds the parties to a decision and may be required by contract. If you and the insurer (or the at-fault party) agree to mediation or if the policy requires arbitration, those are viable alternatives to immediate litigation.

8. File a civil lawsuit if negotiations fail

   If you cannot obtain a fair settlement, your primary remedy is to sue the at-fault party for negligence and damages in Virginia civil court. Before filing, calculate all damages (past and future medical expenses, lost income, pain and suffering, property damage). An accepted settlement typically releases the insured and insurer from further claims, so do not sign away claims prematurely.

9. Watch the Virginia statute of limitations

   Most personal injury claims in Virginia must be filed within two years from the date of injury. See the Code of Virginia for the limit on actions: Va. Code § 8.01-243. Missing the deadline usually bars you from suing, so do not let time run out while you negotiate.

10. Talk with a Virginia personal injury attorney

    An attorney can evaluate the offer, estimate your full case value, explain lien/subrogation issues, and, if appropriate, file suit. Many personal injury attorneys in Virginia handle injury cases on contingency (they are paid a percentage of the recovery), so you may be able to get help without upfront legal fees.

Important practical considerations

• Signing a general release usually prohibits further recovery for the same claim. Understand every clause before signing.
• Insurer recorded statements: you are usually not required to give a recorded statement; consult an attorney first.
• Medical liens and health-plan subrogation can reduce the money you keep from a settlement—ask if the insurer will negotiate those liens.
• Keep copies of all communications and receipts related to your injury and treatment.
• If a settlement check arrives with a release, do not deposit it until you are sure you want to accept its terms.

When to involve the court immediately

Consider filing suit promptly if the insurer denies liability and you have strong proof of the other party’s negligence, if you risk missing the statute of limitations, or if the insurer is acting in bad faith. Filing preserves claims, opens formal discovery (document requests and depositions), and signals you are ready to litigate—this often improves settlement leverage.

Where to get help in Virginia

• Virginia State Corporation Commission, Bureau of Insurance (consumer complaints and information): https://scc.virginia.gov/pages/Insurance
• Virginia Courts self-help resources on civil actions and small claims: https://www.vacourts.gov/selfhelp/
• Virginia Code — statute of limitations for personal injury: Va. Code § 8.01-243

Helpful Hints

• Do not sign a release or cash a check labeled “final payment” without legal review.
• If you have ongoing treatment, delay final settlement until your future medical needs are known or reserve funds for future care.
• Ask whether a settlement will pay medical liens or whether you must resolve them separately; unresolved liens can reduce your net recovery.
• Get an itemized demand letter prepared (or review one from an attorney) that explains your damages and the legal basis for more money than the insurer offered.
• Be aware of time limits in the policy (e.g., deadlines to file suit or arbitrate). Those contractual limits can be strict and shorter than statutory deadlines.
• Use certified mail or email with delivery/read receipts for important communications with the insurer to create a record.
• If the insurer refuses to negotiate or you suspect bad faith, document all communications and consider both filing an SCC complaint and consulting a lawyer about a civil action for the full value of your case.

If you want, I can outline what to include in a demand letter, what questions to ask a prospective Virginia attorney, or what documentation to gather for a stronger contest of the offer.