Detailed answer — Practical steps under Texas law

1. Read the policy and check deadlines

Start by locating the insurance policy and reading the sections on claim procedures, appraisal, mediation, and lawsuit notice. Policies often require you to submit proof of loss, cooperate with the insurer, and may include an appraisal clause or an alternative dispute resolution requirement that controls how to contest value disputes.

2. Evaluate the offer and assemble evidence

Compare the insurer’s written offer to a careful calculation of your economic and non‑economic losses: medical bills, future medical care, lost wages, vehicle repair or replacement, rental or transportation costs, and reasonable pain and suffering. Collect and organize:

• Medical records, bills, and provider statements
• Repair estimates, receipts, or vehicle valuations
• Pay stubs or employer statements showing lost income
• Photos, police reports, witness statements
• A written demand that states your damages and a deadline to respond

3. Send a focused demand letter

Prepare a concise demand letter that explains liability, lists damages with supporting documents, and states the minimum settlement you will accept. Set a reasonable deadline for response. A clear, well‑documented demand often prompts meaningful negotiations.

4. Consider appraisal if the dispute is about value

If the policy contains an appraisal clause and the dispute centers on how much your loss is worth (rather than liability), invoke appraisal per the contract. Appraisal typically works like this: each side hires an appraiser, the two appraisers try to agree on value, and if they cannot, they select an umpire whose decision is final. Appraisal can resolve value quickly and cheaply but usually won’t decide liability issues.

5. Use formal complaint channels

If negotiations fail, you can file a consumer complaint with the Texas Department of Insurance (TDI). TDI can review claim handling and sometimes helps resolve disputes or identify violations of Texas insurance laws. File a complaint online: https://www.tdi.texas.gov/consumer/complfrm.html.

6. Alternative dispute resolution (mediation or arbitration)

Many policies or settlement agreements allow or require mediation or binding arbitration. Mediation is a facilitated negotiation that can produce a settlement. Arbitration is a private adjudication that can be binding and usually limits appeal rights. Review the policy and any pre‑suit agreements before starting either process.

7. File a lawsuit if necessary — watch the deadline

If all else fails, you may file suit in state court to pursue fair compensation. For most personal injury or property damage claims in Texas, the general statute of limitations is two years from the date of the injury or occurrence. See Texas Civil Practice & Remedies Code, Chapter 16 (statute of limitations): https://statutes.capitol.texas.gov/Docs/CP/htm/CP.16.htm (see §16.003 for personal‑injury limitations). Filing a timely lawsuit preserves your right to a jury trial and formal discovery that can strengthen your bargaining position.

8. Remedies and Texas law that may help

Under Texas law, insurers that engage in unfair claim practices or that fail to promptly pay valid claims may face statutory remedies. Relevant parts of the Texas Insurance Code include:

• Unfair methods, acts, and practices — Texas Insurance Code Chapter 541: https://statutes.capitol.texas.gov/Docs/IN/htm/IN.541.htm
• Prompt payment of claims — Texas Insurance Code Chapter 542 (procedures, penalties, and potential fees): https://statutes.capitol.texas.gov/Docs/IN/htm/IN.542.htm

These provisions can sometimes allow for extra recovery beyond your policy benefits (such as interest, statutory penalties, or fees) when the insurer violates statutory duties. Whether they apply depends on the facts and timing, so consult counsel if you believe the insurer acted improperly.

9. When to hire an attorney

Consider calling a lawyer if any of the following apply:

• Serious or long‑term injuries
• Liability is contested or multiple parties are involved
• The insurer refuses to pay documented medical bills or vehicle repairs
• You suspect the insurer violated Chapters 541 or 542 of the Texas Insurance Code
• The insurer’s offer is far below documented losses
• Deadline pressures (statute of limitations approaching)

Many personal‑injury and property‑damage attorneys in Texas represent clients on a contingency fee basis (they get paid only if you recover). A consultation can clarify whether you have a strong claim and outline costs, timing, and likely outcomes.

Helpful hints — quick practical tips

• Respond in writing. Keep all correspondence and make dated copies of everything you send or receive.
• Don’t sign broad releases or accept a check without confirming the release language. A full release typically ends your right to pursue additional recovery.
• Keep detailed records of all medical treatment and out‑of‑pocket expenses related to the accident.
• If the dispute is about repair cost or vehicle value, appraisal can be faster and cheaper than litigation.
• File a TDI complaint early if the insurer stalls or stops communicating: Start a complaint with TDI.
• Check whether your claim qualifies for a justice court (small‑claims) case in your county. Justice courts handle many lower‑value disputes and move faster than district courts: Texas justice courts.
• Be mindful of the statute of limitations for personal injury and property claims in Texas (usually two years). See: Tex. Civ. Prac. & Rem. Code, Chapter 16.