What to do when an insurance company’s settlement offer is too low (Tennessee)

Disclaimer: This is general information, not legal advice. Laws change and every case is different. Consult a licensed Tennessee attorney for advice about your specific situation.

Quick answer (overview)

If an insurer offers an unacceptably low settlement after a Tennessee accident, you can collect better evidence, make a firm written demand, use any contract dispute procedures (appraisal, mediation, or arbitration) required by the policy, file a complaint with the Tennessee Department of Commerce & Insurance, and—if needed—sue in civil court (including claims for unpaid damages and possibly insurer unfair-practice or bad-faith claims). Acting quickly, documenting losses, and consulting a Tennessee lawyer improves your chances of a better result.

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

1. Read your policy and note any dispute procedures

Start by reviewing the insurance policy that covers your claim. Policies often contain specific steps and timelines for resolving disputes, such as:

• Appraisal clauses (common in property claims) that submit value disputes to one or three independent appraisers;
• Mediation or binding arbitration clauses that require resolving disagreements outside court;
• Notice and proof-of-loss requirements and short deadlines for certain first-party claims.

If your policy requires appraisal or arbitration, you generally must follow those contract steps before filing a lawsuit unless the contract or law allows otherwise.

2. Improve the record: gather and organize evidence

Insurers base offers on the evidence you provide. Strengthen your position by assembling:

• Medical records, bills, and a narrative tying injuries to the accident;
• Property repair estimates, photos of damage, and rental/car replacement costs;
• Lost-wage documentation (pay stubs, employer letters) and pre-accident wage history;
• Police reports, witness statements, and any video or location data;
• Expert opinions (medical experts, repair shops, accident reconstruction) when appropriate.

3. Send a detailed written demand

Prepare a clear written demand that:

• Explains the accident and liability facts;
• Summarizes injuries, treatment, and future care needs;
• Lists economic losses (medical bills, lost wages, repairs) and non-economic losses (pain and suffering) with a specific dollar demand and supporting documentation;
• Offers a deadline for response (often 2–4 weeks).

A precise, well-documented demand can prompt a meaningful counteroffer or settlement without litigation.

4. Use contract dispute tools if applicable (appraisal, mediation, arbitration)

If the policy contains an appraisal clause (common in property claims) or arbitration/mediation requirement, invoke those procedures in writing. Tennessee courts generally enforce valid appraisal and arbitration provisions found in insurance contracts. Follow the contract rules exactly (selecting appraisers, meeting deadlines, paying required fees).

5. Involve the Tennessee Department of Commerce & Insurance (consumer complaint)

If you suspect the insurer acted unfairly, you can file a complaint with the Tennessee Department of Commerce & Insurance (Consumer Services). The department reviews complaints, communicates with the insurer on your behalf, and can identify regulatory violations. Filing a complaint does not replace a lawsuit but may spur a better settlement.

File a complaint and learn the process here: Tennessee Department of Commerce & Insurance — File a Complaint.

6. Consider a lawsuit: timing, claims, and procedure

If negotiations and regulatory steps fail, you can file a civil lawsuit in Tennessee seeking full damages. Key points:

• Choose the correct court based on the amount in controversy and the type of claim;
• File before the relevant statute of limitations runs (time limits differ by claim type — personal injury, property damage, and contract claims may have different deadlines);
• Follow Tennessee Rules of Civil Procedure during pleadings, discovery, and motion practice; see general court rules here: Tennessee Rules (tncourts.gov);
• During litigation you can use discovery (depositions, written questions, document requests) to strengthen your case and force full disclosure from the insurer.

7. Unfair settlement practices and bad-faith claims

Tennessee regulates insurers and prohibits unfair or deceptive acts in insurance. If the insurer misrepresented policy provisions, failed to investigate reasonably, delayed unreasonably, or denied coverage without a reasonable basis, you may have regulatory claims or, in some cases, a tort action against the insurer. The Tennessee Department of Commerce & Insurance enforces insurance rules and can investigate complaints.

Bringing a bad-faith or unfair-practice lawsuit can be complex. These claims often require proof that the insurer acted unreasonably or in bad faith in handling your claim. Consult a Tennessee lawyer before pursuing such claims to evaluate the legal standard and potential remedies.

8. Settlement strategy and negotiation tips

During the appeal or negotiation:

• Keep a written record of every contact with the insurer;
• Demonstrate willingness to litigate if necessary (many insurers will increase offers in response to a credible filing or pre-suit demand letter from counsel);
• Consider mediation—neutral mediators can produce better results than headline bargaining;
• Ask about coverage limits and any available policy stacking or underinsured motorist (UIM) coverage that could increase recovery;
• Evaluate the costs and risks of trial vs. settlement—your attorney can run a damages projection to compare options.

Practical timeline and action checklist

1. Immediately preserve all evidence and get medical care.
2. Within days to weeks, gather medical, repair, and wage documentation.
3. Within 30–60 days, send a written demand and request appraisal/mediation if provided by the policy.
4. If the insurer refuses reasonable settlement, file a complaint with the Tennessee Department of Commerce & Insurance.
5. Before relevant statute of limitations expires, consult an attorney about filing suit and possible bad-faith or regulatory claims.

Resources and links

• Tennessee Department of Commerce & Insurance — Consumer complaint and resources: https://www.tn.gov/commerce/insurance/consumer-resources/file-a-complaint.html
• Tennessee Courts — rules and self-help information: https://www.tncourts.gov/rules
• Tennessee General Assembly (information about state laws and statutes): https://www.capitol.tn.gov/

Helpful Hints

• Do not accept the first offer without verifying all damages and future needs.
• Put everything in writing—telephone promises are hard to enforce.
• If the insurer asks you to sign a release, have a lawyer review it before you sign; releases can bar future claims for further damages.
• Keep a claim file with dates, names, and summaries of each contact with the insurer and any adjusters.
• Early legal advice is often cost-effective—many injury attorneys offer free consultations and work on contingency for personal injury claims.
• Use the Department of Commerce & Insurance complaint tool early if you see clear investigatory problems; it can prompt insurer action without litigation.

If you want, I can summarize typical time limits and common statutes that often apply to suits for personal injury, property damage, or contractual disputes in Tennessee and point to the exact statutory sections. I can also list typical documents to include in a strong written demand.