Quick answer

If an insurer refuses to increase what it calls its “final” offer in Maryland, you have several practical and legal options: keep negotiating, use alternative dispute resolution (mediation, appraisal, or arbitration), file a civil lawsuit to pursue a larger recovery, or file a complaint with the Maryland Insurance Administration. Which option fits depends on the type of claim, the policy terms, and how close you are to important deadlines.

Detailed answer — step-by-step options

1. Confirm whether the offer is actually final

Insurers sometimes say an offer is “final” to press a quick settlement. Ask for the offer in writing and ask what facts or documents would justify changing the amount. That gives you a record and may reveal if a small additional piece of evidence could move the company.

2. Reevaluate your position and your damages

Before you respond, make sure you understand your full losses: medical bills, lost wages, repair costs, diminished value, pain and suffering, and any future care. Compare the insurer’s offer to your documented losses and to reasonable estimates of what a judge or jury might award. If your numbers are substantially higher, that supports further steps.

3. Make a reasoned counteroffer or demand letter

Send a concise, well-documented demand letter explaining your damages and why the insurer’s offer is insufficient. Include medical records, repair estimates, receipts, wage statements, and a short legal argument tied to the policy or the insurer’s liability. A formal demand can reset negotiations and shows you are serious.

4. Use the dispute-resolution process in your policy (appraisal, mediation, arbitration)

Many insurance policies have clauses that require appraisal (common in property claims) or arbitration/mediation (more common in commercial or certain auto policies). If your policy contains one of these clauses, you can invoke it to force a neutral process. Read your policy carefully and follow any deadline or notice requirements.

5. File a lawsuit

If negotiations fail, you can sue the responsible party (e.g., the other driver for negligence or the insurer if a first-party coverage dispute). Filing a lawsuit preserves your rights and starts formal legal discovery. In Maryland, delays can be costly. Courts set time limits for bringing claims, so do not wait too long before consulting an attorney about filing.

6. Consider a “bad faith” or unfair claim practice complaint

Under Maryland law, insurers have duties to handle claims fairly. If the company refuses reasonable settlement despite clear liability and damages, you may have a claim for unfair claim practices or insurer bad faith. In many situations you should first consult an attorney before asserting a bad faith claim because these claims can be complex and fact-specific.

7. Contact the Maryland Insurance Administration (MIA)

If you believe the insurer is acting unfairly, you can file a consumer complaint with the Maryland Insurance Administration. The MIA can investigate claim-handling conduct and sometimes assist in resolving disputes. File a complaint online or by phone:

Maryland Insurance Administration — Consumer Complaints

8. Weigh costs and timing

Litigation, appraisal, or arbitration costs time and money. Evaluate the insurer’s offer against the costs and delays of other options. For small claims, a modest difference may not justify a lawsuit. For large losses, aggressive action is often appropriate.

Important Maryland-specific considerations

• Policy terms control: Maryland law enforces the written policy. Read any appraisal, arbitration, or notice provisions and follow them precisely.
• Time limits: Maryland imposes statutory time limits to file suits for most personal-injury and property claims. If you wait past those deadlines, you may lose the right to sue. Check deadlines early and consult a lawyer about your situation.
• Regulatory help: The Maryland Insurance Administration can receive complaints and sometimes prompt insurer action. Use that resource after you’ve exhausted reasonable claim-handling steps with the company.
• Document everything: Keep all correspondence, estimates, receipts, photographs, and medical records. Well-organized records strengthen negotiations and any later legal claim.

When to contact a Maryland attorney

Talk to an attorney if any of the following apply:

• The insurer admits liability but offers only a small portion of your documented damages.
• Your claim is large or involves future medical needs or permanent impairment.
• The insurer denies coverage or points to a policy exclusion you do not understand.
• The insurer delays unreasonably, misrepresents facts, or rejects reasonable proofs of loss.
• You’re nearing the statute-of-limitations deadline for filing suit.

An attorney can explain your legal claims, send a stronger demand letter, evaluate bad-faith issues, and file suit if needed.

Helpful Hints

• Ask the insurer to put the “final” offer in writing and explain why it is final.
• Keep a chronological file with dates, names, phone calls, and what was said.
• Get multiple repair or replacement estimates for property damage.
• Do not accept a release or sign off until you understand it. Releases can bar future claims.
• Check your policy for appraisal, mediation, or arbitration clauses and comply with notice provisions.
• File a complaint with the Maryland Insurance Administration if the insurer’s conduct seems unfair: MIA Consumer Complaints.
• If you plan to sue, preserve evidence (photos, receipts, damaged property) and continue medical care as prescribed.