What to do when an insurer refuses to increase its final offer — Georgia guidance
Detailed Answer
When an insurance company in Georgia declines to raise its final settlement offer, you have several practical and legal options. Which path you choose depends on whether you are dealing with a first‑party claim (your own insurer) or a third‑party claim (someone else’s insurer), the strength of your proof, your policy limits, and how close you are to applicable deadlines. Below is a step‑by‑step explanation of typical options, how they work in Georgia, and where to get help.
1. Confirm the insurer’s position and review your policy
Ask the insurer for a clear written explanation of why they will not offer more. Compare that explanation to your policy’s terms (coverage limits, exclusions, deadlines, and any appraisal or arbitration clauses). Knowing exactly what your policy says sets realistic expectations for what an insurer must pay and whether a contractual remedy is possible.
2. Strengthen your claim with documentation
If the insurer claims your evidence is insufficient, gather stronger proof: complete medical records, repair estimates, receipts, photos, witness statements, expert reports (medical, accident reconstruction, or property damage). Send a well‑organized supplemental demand letter that ties the new evidence to a clear dollar demand and a deadline for a response.
3. Use contractual dispute procedures
Many policies include dispute mechanisms such as appraisal (common in property claims) or arbitration. If your policy contains an appraisal clause, invoking appraisal can force a neutral assessment of value. If arbitration is an option and you prefer a faster private resolution than court, consider it—but review the clause carefully because arbitration can limit later court remedies.
4. Consider suing the at‑fault party (third‑party claims)
If this is a third‑party liability claim (for example, another driver injured you), you can file suit against the at‑fault party. If that party has liability insurance, the insurer will normally defend and may then reconsider settlement. Filing suit can change the dynamics: it creates court deadlines, discovery, and the prospect of a jury verdict that may exceed the insurer’s offer.
5. Consider breach of contract or bad‑faith allegations against your insurer
If your own insurer wrongfully refuses to pay a covered claim or unreasonably delays payment, you may have a breach of contract claim. Georgia law also addresses unfair claims settlement practices. You can file a consumer complaint with the Georgia Office of Insurance and Safety Fire Commissioner (OCI), which can investigate and take administrative action. OCI also explains consumer rights and complaint procedures: https://oci.georgia.gov/consumer-complaint
Whether you can bring a separate tort claim for insurer bad faith in Georgia depends on the facts. If the insurer’s conduct is egregious, an attorney can evaluate whether a lawsuit for bad faith or other remedies is appropriate. For an overview of Georgia insurance law (Title 33 of the Official Code of Georgia), see the Georgia Code resource: https://www.legis.ga.gov/georgia-code
6. File a consumer complaint with the Georgia insurance regulator
If negotiations stall and you suspect unfair practices (misleading explanations, unreasonable delays, or failure to investigate), file a complaint with the OCI. The regulator can prompt investigation, mediation attempts, and administrative penalties if it finds violations. Submit complaints here: https://oci.georgia.gov/consumer-complaint
7. Know time limits and act promptly
Claims and lawsuits are subject to deadlines. For example, tort claims for personal injury in Georgia generally must be brought within the state’s statute of limitations. If you delay, you may lose the right to sue. If you are unsure about deadlines, consult an attorney promptly or check the Official Code of Georgia via the legislature’s site: https://www.legis.ga.gov/georgia-code
8. Hire an attorney when appropriate
An attorney can evaluate the strength of your claim, send a formal demand, handle appraisal or arbitration, file suit if needed, and advise about potential recovery of attorney fees and damages. Many injury and insurance attorneys handle these cases on contingency (they collect fees only if you recover money). If an insurer is entrenched in an unreasonable position, attorney involvement often changes the insurer’s calculus.
9. Settlement versus trial: weigh costs and risks
Even if you believe you would win at trial, consider costs, time, and uncertainty. Trials can take months or years. A settlement avoids uncertainty but may be lower than a successful verdict. An attorney can provide a realistic valuation and recommend whether settlement, arbitration, or litigation best fits your goals.
10. Practical next steps (summary)
- Get the insurer’s refusal in writing and request a detailed explanation.
- Collect and send additional supporting documentation and a new demand.
- Invoke policy dispute procedures (appraisal/arbitration) if present and appropriate.
- File a lawsuit against the at‑fault party if this is a third‑party liability claim and the insurer will not pay fair value.
- File a complaint with the Georgia Office of Insurance and Safety Fire Commissioner: https://oci.georgia.gov/consumer-complaint
- Talk to an attorney to evaluate breach of contract or other legal claims.
Where to find official Georgia resources
Georgia Office of Insurance and Safety Fire Commissioner (consumer complaints and insurance guidance): https://oci.georgia.gov/consumer-complaint
Official Code of Georgia (search Title 33 for insurance statutes and other relevant provisions): https://www.legis.ga.gov/georgia-code
Disclaimer: This article explains general Georgia legal concepts and options. It is not legal advice. For advice tailored to your situation, consult a licensed Georgia attorney.
Helpful Hints
- Document everything: Keep written records of calls, emails, settlement offers, and the insurer’s reasons for refusing more money.
- Organize evidence: Medical bills, repair estimates, photographs, and witness statements increase settlement leverage.
- Send a clear demand: A concise, documented demand letter with a deadline often prompts a better response.
- Check policy limits early: Settlement options change once the at‑fault party’s policy limit is reached.
- Preserve deadlines: Learn applicable statutes of limitations and any policy notice requirements to avoid losing rights.
- Consider appraisal for property claims: It can be faster and cheaper than litigation if the policy allows it.
- Use the regulator: The Georgia OCI can investigate unfair practices and sometimes resolve disputes without a lawsuit.
- Ask about fees: If you hire an attorney, clarify fee structure (contingency, hourly, or flat) and who pays costs.
- Keep expectations realistic: Insurance companies try to limit payouts; an informed approach and strong evidence increase your chance of a fair result.