Quick disclaimer

This article explains general information about contesting an insurer’s final offer in Indiana. It is educational only and is not legal advice. For advice about your particular situation, consult a licensed Indiana attorney.

Detailed answer: Step-by-step process under Indiana law

When an insurance company gives a “final” settlement offer after you were injured, you have several possible ways to respond. Below is a practical, step-by-step approach that reflects common practice in Indiana and key legal timing you must respect.

1. Stop and document the offer

   Save the insurer’s written offer, all emails, and notes of any phone calls. Record the date and time of the offer and any deadlines the insurer sets. Do not accept or sign anything until you understand the full impact of the proposed release or settlement language.

2. Compare the offer to your damages

   List your economic losses (medical bills, lost wages) and estimate non-economic losses (pain and suffering). Include future medical or wage losses when possible. If liens, Medicare, Medicaid or health insurers may have claims, estimate or obtain lien information so you know the net money you will actually receive.

3. Send a reasoned response or demand

   If the offer is insufficient, respond in writing. Explain facts, cite medical records, and attach bills and wage proof. Ask for the insurer’s basis for their valuation (e.g., damage calculations, medical opinions, wage formulas). A clear, documented demand often restarts negotiation.

4. Consider alternative dispute resolution (ADR)

   Many claims resolve through mediation or arbitration. Mediation uses a neutral mediator to facilitate settlement. Arbitration can be binding or nonbinding depending on the agreement. ADR is often faster and less costly than a full lawsuit.

5. File a complaint with the Indiana Department of Insurance (IDOI)

   If you suspect unfair insurer practices (unreasonable denial or delay), you can submit a complaint to the state regulator. The IDOI can investigate complaints about insurer conduct and may help resolve consumer disputes. See the Indiana Department of Insurance at https://www.in.gov/idoi/.

6. Decide whether to sue—watch the statute of limitations

   If negotiations and regulatory complaints fail, you may file a civil lawsuit against the at-fault party (and possibly the insurer if facts support a direct claim). Under Indiana law, most personal injury claims must be filed within two years from the date of the injury. See Indiana Code § 34-11-2-4: https://iga.in.gov/laws/2024/ic/titles/034/articles/11/chapters/2/sections/4. Do not let this deadline pass; missing it normally ends your right to sue.

7. Hire an Indiana attorney or get a consultation

   An attorney experienced in Indiana injury claims can evaluate settlement fairness, negotiate, prepare for ADR, or file suit if necessary. If you cannot hire counsel, use local court self-help resources for filing instructions: https://www.in.gov/courts/self-help/.

8. Prepare for trial or arbitration

   If you go forward, collect medical records, witness statements, photos, bills, employment records and any other proof of damages. Your attorney will handle filing, discovery, subpoenas, and trial preparation or arrange arbitration or mediation.

9. Evaluate settlement offers during litigation

   Even after a suit is filed, insurers often make new offers. Re-evaluate any offer against the likely trial outcome, attorney fees, court costs, and time. An attorney can provide a realistic assessment of settlement value versus risk at trial.

When might an insurer’s “final” offer be legally problematic?

• Incomplete accounting of medical treatment or future care costs.
• Failure to adjust for medical liens or subrogation properly.
• Pressure tactics that force quick acceptance without full release review.
• Evidence the insurer acted in bad faith in handling your first-party claim (raise with IDOI or counsel).

Whether the insurer’s conduct gives rise to a separate legal claim (for example, bad faith) depends on the facts and Indiana law. Discuss facts with a lawyer.

Helpful hints

• Do not sign a general release until you know all current and future medical needs.
• Get lien information early (health providers, Medicare, Medicaid, insurers) so you know net recovery.
• Keep a medical and expense diary with dates, providers, treatments, and how injuries limit daily life—this helps document non-economic losses.
• Ask the insurer for written calculations of how they reached the offer amount.
• Consider a recorded or written settlement demand summarizing your bottom-line number and legal basis.
• Start a file with every bill, receipt, communication, and photo related to the injury. Good records strengthen negotiation and litigation positions.
• Be mindful of the statute of limitations—filing a lawsuit is often the only way to preserve full legal rights if negotiations stall.
• Use the Indiana Department of Insurance if you suspect unfair claim handling: IDOI.
• For self-help, forms, and court procedures in Indiana courts, visit: Indiana Courts – Self-Help.