Appealing a Low Insurance Settlement Offer After an Accident in South Carolina

Short answer: If an insurer offers a low settlement after an accident, you can gather and document evidence, present a written demand, use the policy’s appraisal or dispute-resolution tools (if any), file a complaint with the South Carolina Department of Insurance, and, if needed, file a lawsuit before the state statute of limitations runs. Each step has rules and deadlines, so act promptly. This article explains the practical steps under South Carolina law and what to expect.

Detailed Answer — How to appeal a low settlement offer in South Carolina

1) Understand what the offer covers and why it is low

Ask the insurer to explain in writing how it calculated the offer. You should get a written settlement offer or denial that identifies the insured policy, the amounts, and the insurer’s reasons. A clear written explanation helps you spot errors or missing documentation (medical bills, lost wages, repair estimates, police reports, or evidence of liability).

2) Preserve and organize your evidence

Collect and organize all documents that support your claim:

• Medical records, treatment notes, and itemized bills.
• Repair estimates, invoices, and vehicle photos for property damage.
• Pay stubs or employer letters showing lost income.
• Police or accident reports and witness contact information.
• Communications with the insurer (emails, letters, notes of phone calls).

3) Send a detailed written demand package

Create a demand letter that states the facts, the insured’s liability, injuries or damages, and a specific dollar demand supported by documentation. Keep the tone professional. Attach copies of key documents rather than originals. A strong demand often prompts a better offer.

4) Escalate inside the insurer

If the adjuster’s offer is low, ask to speak to a supervisor or a claim review unit. Point to the evidence you compiled. Ask for a written explanation if the insurer refuses to increase the offer. Document every escalation attempt.

5) Use contract remedies in the policy

Read the insurance policy. Many policies include appraisal or appraisal-and-arbitration clauses for property damage. If the insurer invokes such a clause or you request it, the policy often provides a path to have the dispute decided by neutral appraisers and an umpire. Follow the contract steps precisely.

6) File a complaint with the South Carolina Department of Insurance (DOI)

The South Carolina Department of Insurance accepts consumer complaints about unfair claim handling and other insurer conduct. Filing a complaint asks the DOI to investigate whether the carrier violated insurance laws or regulations. The DOI can request documents and sometimes helps resolve disputes. Visit the Department of Insurance at https://doi.sc.gov for consumer assistance and complaint instructions.

7) Consider mediation or other alternative dispute resolution

If the insurer is unwilling to pay a fair amount, mediation can be an efficient next step. Mediators are neutral and help the parties reach a settlement without a lawsuit. Check whether your policy, the insurer, or the other party prefers mediation.

8) Evaluate and pursue litigation if needed

If negotiation, appraisal, DOI complaints, and mediation fail, you may file a civil action against the insurer (or the at-fault driver if third-party liability is disputed). In South Carolina, statutory time limits apply to personal injury and property damage claims. For many negligence-based injury claims, the statute of limitations is three years from the injury (see South Carolina Code Title 15). File a lawsuit before the applicable deadline. You can find Title 15 at the South Carolina Code site: https://www.scstatehouse.gov/code/t15.php

9) Understand possible claims against the insurer

Depending on the facts, you might have a claim beyond simple breach of contract—such as an unfair-claims-practices complaint to the DOI. South Carolina’s insurance laws and regulations govern insurer conduct; see Title 38 (Insurance) of the South Carolina Code for statutory provisions that affect claims handling and consumer protections: https://www.scstatehouse.gov/code/t38.php

10) Weigh costs and benefits

Litigation costs, attorney fees, and the time needed for a trial can outweigh potential recovery when the offer is low but the claim value is modest. Talk with an attorney about the likely net recovery after legal fees and expenses. Many personal-injury attorneys offer a free initial consult and work on contingency (they take a percentage of recovery), which helps evaluate whether a lawsuit makes sense.

Common timeline and practical expectations

Typical timeline:

• 0–6 weeks: claim reporting, initial inspection, and early offers.
• 6–12 weeks: medical treatment, records gathering, and demand package.
• 3–6 months: negotiation, possible mediation, or appraisal.
• 6+ months: if unresolved, file suit and proceed through litigation unless settled.

Timelines vary with the severity of injuries, the type of coverage, and whether the insurer is cooperative.

Sample hypothetical: Low offer after a rear-end crash

Jane is rear-ended and sustains a neck strain and $6,000 in medical bills. The insurer for the at-fault driver offers $1,500. Jane compiles medical records, a doctor’s opinion linking treatment to the crash, the police report, and wage loss statements. She sends a detailed demand for $15,000 explaining future treatment needs and pain-and-suffering. The insurer refuses to increase the offer. Jane files a DOI complaint and requests mediation. When mediation stalls, Jane consults an attorney, learns filing suit is feasible within three years, and ultimately resolves the claim for $14,000 after a demand, mediation, and threat of suit.

Helpful Hints

• Act quickly. Preserve evidence and note deadlines in your case. Statutes of limitations bar claims that arrive too late.
• Get medical treatment promptly and follow the treatment plan. Gaps in treatment can reduce claim value.
• Keep a written log of symptoms and how injuries affect daily life. This supports non-economic damages like pain and suffering.
• Don’t accept the first offer without checking your damages and documentation. Low early offers are common.
• Request a written denial if the insurer reduces or rejects some damages. A written denial helps later administrative or court claims.
• Use the South Carolina Department of Insurance as a resource: https://doi.sc.gov
• Read your policy for appraisal, arbitration, or coverage limits before deciding next steps; the contract controls many remedies.
• Consider an attorney when liability or damages are disputed or when offers don’t reasonably cover your losses. Many attorneys offer free initial consultations and contingency-fee arrangements.

Where to find statutes and official resources

• South Carolina Code — Title 38 (Insurance): https://www.scstatehouse.gov/code/t38.php
• South Carolina Code — Title 15 (Civil Remedies & Statute of Limitations): https://www.scstatehouse.gov/code/t15.php
• South Carolina Department of Insurance (consumer complaints and guidance): https://doi.sc.gov

Disclaimer: This article is educational only and does not constitute legal advice. It explains common steps under South Carolina law but does not create an attorney-client relationship. For advice on your specific situation, consult a licensed South Carolina attorney.