Detailed Answer

This article explains practical steps and legal options if an insurance company in Montana refuses to increase the settlement offer on your claim. It assumes a common factual example: you submitted a claim after a car accident or property damage, provided medical bills and other proof, made a settlement demand, and the insurer responded with what they call a “final offer.” The insurer refuses further increase. This is not legal advice. Consult an attorney for guidance about your case.

1. Understand what the insurer’s “final offer” really means

Insurers sometimes label an amount as “final” to push claimants to accept. The label does not automatically bar further negotiation or legal remedies. What matters legally is your policy, the facts, and whether the insurer followed Montana law and its own procedures in handling the claim.

2. Review your policy and the claim file

Check your insurance contract for appraisal, arbitration, or dispute-resolution clauses (common in property policies). If an appraisal clause applies, it may let you trigger an independent valuation process without filing a lawsuit. Also collect and keep all communications, denials, offers, medical records, repair estimates, photos, and any records of lost wages or other damages.

3. Consider further negotiation or alternative dispute resolution

Before filing suit, many claimants try one or more of these steps:

• Send a clear, written demand letter that states facts, documents damages, and explains how you calculated your requested amount.
• Request a claim supervisor or an independent medical examination if the insurer questions medical causation or treatment.
• Propose mediation. Mediation can produce a negotiated settlement with a neutral facilitator and often costs less than litigation.
• Invoke an appraisal clause (for property claims) if the policy allows.

4. File an administrative complaint with Montana’s insurance regulator

If you believe the insurer acted unfairly or violated Montana’s insurance laws or rules, you can file a complaint with the Montana Commissioner of Securities and Insurance. The Commissioner’s office can investigate unfair claim practices and sometimes help resolve disputes. See the Commissioner’s website for complaint instructions: https://csimt.gov/.

5. Evaluate legal claims — breach of contract and unfair claim practices

If negotiations and administrative complaints do not work, you can consider a civil lawsuit. Two common legal bases are:

• Breach of contract: If the insurer unreasonably refuses to pay what the policy covers, you may sue for breach of contract and request the unpaid policy benefits plus interest and court costs.
• Unfair claim handling or unfair trade practices: Montana’s insurance laws prohibit unfair methods and deceptive practices in insurance. If the insurer’s conduct violates Montana’s insurance statutes or regulations, you may include those claims in a lawsuit or report them to the regulator. For the statutory framework on unfair practices in Montana, see Montana Code Title 33, chapter 18: https://leg.mt.gov/bills/mca/title_0330/chapter_0180/parts_index.html.

Note: Specific remedies and the availability of punitive damages, extra-contractual damages, or attorney fees depend on Montana law, the facts, and court decisions. Consulting a lawyer will help you evaluate how strong these claims are for your situation.

6. Watch the deadlines (statute of limitations)

If you plan to sue, you must file within Montana’s deadline for the type of claim you bring. Different claims (personal injury, property damage, breach of contract) have different time limits. Missing the deadline can bar your lawsuit, so check the relevant statute of limitations or get an attorney’s advice promptly.

7. Small claims and court options

If the disputed amount is small, consider Montana’s small claims process (informal and faster). For larger amounts, you may file a civil lawsuit in district court and pursue discovery, depositions, and motions to build your case.

8. When to call a lawyer

Talk to an attorney if the insurer’s refusal involves a significant amount, a complex medical or legal issue, disputes about fault, or possible bad-faith conduct. A lawyer can evaluate damages, explain likely outcomes, draft demands, and represent you in negotiations, mediation, or litigation.

Helpful Hints

• Document everything: keep copies of medical records, repair bills, rental invoices, emails, letters, and notes of phone calls (date, time, who you spoke with, what was said).
• Send a written demand: describe your losses, attach proof, and state a specific dollar figure and a reasonable deadline for response.
• Check your policy for mandatory steps: appraisal, notice requirements, or deadlines you must meet before suing.
• Use the Montana Commissioner of Securities and Insurance as a resource: https://csimt.gov/ has complaint forms and consumer guides.
• Be cautious about signing releases: a full release typically prevents further claims for the same loss.
• If the insurer delays unreasonably or misrepresents facts, keep records and consider consulting an attorney about possible unfair-practices claims under Montana law: Mont. Code Ann., Title 33, Ch. 18.
• Act promptly: legal deadlines can be short—don’t wait until it’s too late to preserve your rights.