Overview. After an accident, an insurer may offer a settlement that you think is too low. In Washington, you have several paths to push back: negotiate directly, present a clear demand package, use alternative dispute resolution, file a regulatory complaint with the Washington Office of the Insurance Commissioner (OIC), or—if necessary—file a lawsuit before the state’s statute of limitations runs. This article explains the practical steps to take, the legal remedies available under Washington law, and the timing you must respect.

Step-by-step process to challenge a low offer

1. Don’t accept the offer immediately. A quick “yes” closes most options. You can respond by asking the insurer to explain how it calculated the offer and request time to review.
2. Carefully review your policy and the offer. Check coverage limits, liability (who pays), deductibles, exclusions, and whether the offer is a full-and-final release. Make sure the insurer is applying correct policy provisions.
3. Gather and organize supporting evidence. Build a clear claim package with: the police report, photos, medical records and bills, a chronology of care, wage-loss documentation, repair estimates, invoices, receipts, and any expert reports (e.g., medical or vehicle damage estimates). Insurers respond to organized proof.
4. Send a written demand letter (a “demand package”). Summarize facts, show liability evidence, itemize damages (medical costs, future care estimates, lost earnings, pain and suffering), attach documentation, state a specific monetary demand, and set a reasonable response deadline (often 2–4 weeks). Keep tone professional and factual.
5. Use alternative dispute resolution (ADR). Mediation or neutral evaluation can resolve disagreements without full litigation. Many insurers accept mediation; you can offer it in your demand letter. If the policy includes an appraisal clause (common in property/collision claims), you can demand appraisal to resolve the valuation dispute.
6. Consider retained counsel. A Washington personal injury or insurance attorney can evaluate the claim, send a formal demand or reservation-of-rights letter, negotiate, and, if necessary, file suit. Attorneys often work on contingency for injury claims and can clarify whether the offered amount reflects liability and damages appropriately.
7. File a complaint with the Washington OIC. If the insurer’s conduct seems unreasonable, deceptive, or violates state rules on claims handling, you can file a complaint with the Office of the Insurance Commissioner. The OIC accepts complaints about claim delays, unfair practices, and bad faith handling. For information on filing, see the OIC’s complaint page: https://www.insurance.wa.gov/file-complaint-insurance-company.
8. File a lawsuit before the statute of limitations expires. If negotiations fail, you may sue for breach of contract or to recover damages from the at-fault party. In Washington, the general statute of limitations for actions for injuries to the person or rights of another is three years. See RCW 4.16.080 for the time limit: https://app.leg.wa.gov/rcw/default.aspx?cite=4.16.080. Do not miss this deadline—missing it can bar your right to sue.

Legal standards and Washington statutes

Washington law regulates insurer claim-handling practices. State law lists prohibited or unfair claim-settlement practices, which the OIC enforces. See the statutory provisions addressing unfair claim practices at RCW 48.30.010: https://app.leg.wa.gov/rcw/default.aspx?cite=48.30.010. If an insurer’s conduct meets those standards, the OIC can investigate and take administrative action. In some cases, you may also have private remedies under contract law (breach of insurance policy) or other statutory or common-law claims; an attorney can advise whether a private suit is appropriate in your situation.

Practical timeline and timing tips

• Act quickly to preserve evidence (medical records, photos, vehicle condition).
• Keep a written record of all communications with the insurer (dates, names, summaries of conversations).
• Respect deadlines in your policy (for example, prompt notice requirements) and the court deadlines (statute of limitations).
• File a regulatory complaint if the insurer is unresponsive; the OIC may prompt faster handling.

When to hire a lawyer

Consider hiring an attorney if any of the following are true: the insurer refuses reasonable settlement offers despite clear liability and damages; your injuries are serious or include ongoing or future care needs; coverage disputes (e.g., policy limits or exclusions) arise; the insurer delays, misrepresents, or denies material facts; or you are unsure of your legal rights. An attorney can handle negotiations, preserve evidence, prepare to litigate, and explain potential damages (past and future medical costs, lost earnings, pain and suffering).

What to expect if you sue

If you file suit, expect discovery (exchange of documents and depositions), motions, and either a trial or settlement. Litigation takes time and costs money; attorneys will discuss likely costs and outcomes before filing. Even after filing, cases commonly settle at mediation or during discovery. Litigation gives you leverage and a formal chance to prove damages and liability if settlement talks fail.