Short answer — What to expect

If an insurer offers an amount you believe is too low after an accident, you have several paths: negotiate, use internal appeal or mediation/arbitration if the policy allows, file a complaint with the Virginia Bureau of Insurance (part of the State Corporation Commission), or file a civil lawsuit before the statutory deadline. Collect evidence, request the insurer’s reasoning in writing, and consider hiring a Virginia personal injury attorney who can negotiate or file suit on your behalf.

Detailed Answer — Step-by-step process in Virginia

1. Read the insurance policy and settlement letter

Start by carefully reading your policy, the insurer’s explanation of benefits, and any release or settlement documents. Look for deadlines, appraisal or arbitration clauses, and any required claim appeal procedures. The policy governs what remedies or alternative dispute resolution (ADR) mechanisms the insurer must follow.

2. Document why the offer is low

Build a clear damages package. Include medical records, itemized medical bills, receipts for out‑of‑pocket expenses, wage loss documentation, photos of the damage or injury, repair estimates, expert reports (medical, vehicle damage, or vocational), and a written statement describing pain, limitations, or non-economic losses. A well-organized demand package shows the insurer your calculations and facts supporting a higher amount.

3. Send a firm written demand

Prepare a demand letter that includes the facts, liability evidence (e.g., police report, witness statements), a summary of damages, and a specific monetary demand with supporting attachments. Ask the insurer to respond by a reasonable date. Keep all correspondence in writing and track communications.

4. Use the insurer’s internal appeal process

Many insurers have an internal review or appeal process. Ask the claims handler for a review by a supervisor or an independent examiner. Put your request in writing and enclose any additional evidence. Request a written explanation if the insurer maintains the low offer.

5. Consider mediation, appraisal, or arbitration

If the policy contains an appraisal or arbitration clause, those ADR processes may be binding or non‑binding. Appraisal typically resolves property value disputes (e.g., vehicle damage). Arbitration and mediation are common alternatives to court that can be faster and less costly, but arbitration decisions may be final and limit court remedies. Review your policy and the insurer’s offer to determine if ADR is available and advisable.

6. File a complaint with the Virginia Bureau of Insurance (State Corporation Commission)

If you believe the insurer engaged in improper claims handling, you can file a consumer complaint with the Virginia Bureau of Insurance. The Bureau investigates unfair claim practices and can often obtain additional information from the insurer or help you understand your rights. For general consumer information, see the State Corporation Commission – Bureau of Insurance: https://scc.virginia.gov/boi.

7. Know the statute of limitations — file suit before it expires

If negotiations and administrative remedies fail, you can sue the insurer or the party who caused the accident. In Virginia, the usual statute of limitations for personal injury actions is two years from the date of the injury. See Va. Code § 8.01-243: https://law.lis.virginia.gov/vacode/title8.01/chapter5/section8.01-243/. Filing before the deadline preserves your right to bring a claim; missing the deadline typically bars the claim.

8. Hire a Virginia attorney or pursue small claims

For larger injury claims, most plaintiffs hire a personal injury attorney who handles evidence gathering, files suit in the appropriate Virginia court (often a circuit court for significant damages), conducts discovery, and negotiates or litigates. Many personal injury attorneys work on contingency (they collect attorney’s fees as a percentage of recovery). For smaller property damage or modest claims, a small claims court or civil warrant may be appropriate — check local jurisdiction limits and procedures.

9. Prepare for litigation if needed

If you file suit, expect pleadings, discovery (interrogatories, requests for production, depositions), motion practice, possible mediation ordered by the court, and then trial if the case does not settle. Litigation takes time and has costs; consider the insurer’s settlement, your recovery expectations, and litigation risk when deciding whether to sue.

10. Consider bad‑faith or statutory claim options carefully

Virginia law provides regulatory protections against unfair claim practices. If an insurer intentionally and unreasonably denies or delays payment, there may be regulatory remedies or, in some circumstances, tort claims. These claims can be complex and fact‑specific. Consult a Virginia attorney before asserting a bad‑faith or punitive damages claim.

When to hire a lawyer

• If liability is contested.
• If injuries are serious, involve ongoing care, or have long‑term impact.
• If the insurer refuses to provide claim files, or you suspect wrongful claim practices.
• If you must file suit to preserve your rights before the statute of limitations.

Helpful Hints

• Preserve evidence: keep photos, repair estimates, medical records, bills, and a contemporaneous diary of symptoms and treatment.
• Get medical treatment promptly: delayed treatment can undermine your claim for damages.
• Keep injury-related receipts and records of lost wages, travel to medical appointments, and care costs.
• Ask for the insurer’s claim notes and demand reasoned explanations in writing if they deny or undervalue parts of your claim.
• Be cautious signing releases: a full release typically prevents you from later seeking additional compensation for the same injuries.
• Consider independent appraisals or medical opinions when disputes are about value or causation.
• File a complaint with the Virginia Bureau of Insurance if you believe the insurer violated rules: https://scc.virginia.gov/boi
• Track the statute of limitations (Va. Code § 8.01-243) and act early: https://law.lis.virginia.gov/vacode/title8.01/chapter5/section8.01-243/