Understanding your options when an insurance settlement is too low in Maryland

Disclaimer: This is general information, not legal advice. I am not a lawyer. For advice about your situation, consult a Maryland-licensed attorney.

Detailed Answer — step-by-step response and options

If an insurer offers an amount you believe is too low after an accident, you have several practical and legal options under Maryland law. Below is a clear, step-by-step framework to decide what to do next and how to increase your chance of getting a fair outcome.

1. Read the offer and your policy carefully

Before you respond, review the written offer, any release or settlement form attached to it, and your insurance policy. The release usually asks you to give up future claims for the same injury. Check policy coverages, limits, and any required steps (for example, whether the policy requires appraisal or arbitration for property claims).

2. Evaluate the value of your claim

Break your claim into categories: economic damages (medical bills, vehicle repair, lost wages) and non‑economic damages (pain and suffering). Gather bills, repair estimates, paystubs, medical records, and photos. If the insurer’s offer ignores these items or undervalues them, document that gap in writing.

3. Send a written demand or counter‑offer

Send a concise demand letter or counter‑offer that states a dollar amount, summarizes the facts and evidence, and sets a deadline for a response. Include important exhibits (medical bills, photos, repair estimates) or summarize them and say you will provide full records on request. A firm, documented demand often prompts the insurer to re‑evaluate.

4. Use alternative dispute resolution (mediation or arbitration)

Many disputes resolve in mediation. Maryland courts and private mediators can help settle cases without trial. If your policy contains an appraisal or arbitration clause (common in property damage/UM claims), follow that contractual process. Check the Maryland Judiciary’s ADR resources for court‑connected mediation: https://www.mdcourts.gov/legalhelp/adr.

5. File a complaint with the Maryland Insurance Administration (MIA)

If you think the insurer acted unfairly, you can file a consumer complaint with the MIA. The MIA will review complaints about claim handling and may communicate with the insurer on your behalf. MIA consumer information and complaint filing: https://insurance.maryland.gov/Consumer/Pages/complaints.aspx.

6. Consider small claims or a civil lawsuit

If negotiations and administrative complaints fail, you can sue. For lower dollar disputes you may use Maryland District Court small claims procedures; see: https://www.mdcourts.gov/district/smallclaims. For larger claims, you can file a civil action in Maryland courts. Be mindful of the applicable statute of limitations for personal injury claims — generally, Maryland imposes time limits on when you must file suit. See the Maryland statute of limitations for personal injury: Md. Courts & Judicial Proceedings § 5-101. Missing a deadline can bar your case.

7. Evaluate a lawsuit for bad faith or unfair claim practices

In some circumstances, an insurer’s conduct may give rise to a claim for unfair trade practices or insurance bad faith. Those claims depend heavily on the insurer’s conduct (for example, knowingly denying a valid claim or refusing to investigate). These claims are fact‑specific and often require counsel to evaluate whether legal standards are met.

8. Hire a Maryland attorney when appropriate

Consult an attorney if: your injuries are serious, the insurer’s offer is far below documented losses, the insurer requests you sign a broad release, or you face complex issues (permanent injury, disputed liability, policy limits). An attorney can prepare a demand, negotiate with defense counsel, guide ADR, and, if needed, file suit. Early consultation helps protect evidence and comply with deadlines.

Practical considerations and timeline

• Keep all communications in writing and keep copies of letters, emails, and settlement offers.
• Do not sign any release or accept payment until you understand whether it closes future claims.
• Track deadlines: the insurer’s response deadlines, your own medical follow‑up, and the statute of limitations for filing suit.
• Preserve evidence: photos, witness contact info, vehicle repair estimates, and medical records.

Helpful Hints

• Send a clear written demand with a deadline — many insurers respond to a well‑documented counter‑offer.
• If the offer is accompanied by a release form, read every line; releases often prevent future claims even for worsening injuries.
• Use mediation early if liability is disputed; mediation can produce a faster, cheaper resolution than a lawsuit.
• File a complaint with the Maryland Insurance Administration if you suspect unfair claim handling: insurance.maryland.gov.
• If your claim is small, check District Court small claims rules and limits before paying for a lawyer: mdcourts.gov/district/smallclaims.
• Don’t delay medical treatment — gaps can hurt your claim and make it easier for the insurer to argue your injuries are not serious.
• Maryland’s fault rules can affect recovery. If the insurer claims you were at fault, discuss contributory‑negligence issues with counsel promptly.
• Get a free consultation — many Maryland personal injury attorneys offer free case reviews and contingency fee arrangements (no fee unless you recover).

Useful Maryland resources

• Maryland Insurance Administration — consumer complaints and guidance: https://insurance.maryland.gov/Consumer/Pages/complaints.aspx
• Maryland District Court small claims information: https://www.mdcourts.gov/district/smallclaims
• Maryland Judiciary ADR (mediation) resources: https://www.mdcourts.gov/legalhelp/adr
• Maryland statute of limitations for personal injury claims: Md. Courts & Judicial Proceedings § 5-101
• Maryland Courts home page (filing civil actions): https://www.mdcourts.gov

Next steps: gather your records, prepare a short written demand, and consider speaking with a Maryland attorney for a case-specific assessment. Acting promptly preserves your rights and increases your chance of a fair settlement.