Detailed Answer
If an insurer’s settlement offer after an accident looks unreasonably low, you have a series of practical steps you can take under Maine law to challenge the offer and pursue fair compensation. This guide explains the common process, what you should gather and preserve, regulatory options in Maine, and when to involve an attorney. This is educational information only and not legal advice.
1. Immediately review your policy and the insurer’s written offer
Start by reading your insurance policy, the insurer’s letter or email, and any releases or forms the company asks you to sign. Look for coverage limits, deadlines to accept an offer, and any language that conditions payment on signing a release. Do not sign a full-release or endorsement until you are sure the payment covers all current and reasonably foreseeable losses. Preserve the offer and all communications.
2. Collect and organize evidence that supports a higher value
Insurers base offers on the information they have. Strengthen your position by assembling:
- Medical records, bills, and a timeline of treatment.
- Pay stubs or other proof of lost wages and a doctor’s note about return-to-work restrictions.
- Police report, photos of the scene and vehicle damage, witness contact information.
- Repair estimates, receipts for out-of-pocket expenses, and any expert opinions (medical or accident reconstruction) you can obtain.
3. Send a clear, written demand (a counter-demand) to the insurer
Draft and send a demand letter that documents the facts, summarizes injuries and damages, attaches supporting records, and states the specific dollar amount you are requesting and why. Ask for a reasonable timeframe for a response. A well-documented demand often prompts a better offer because it shows you are prepared to pursue the claim further.
4. Use negotiation and alternative dispute resolution
After you submit a demand, expect back-and-forth negotiation. Insurers commonly improve offers after further documentation or explanation of future medical needs. Consider proposing mediation or nonbinding arbitration if the insurer will agree; these processes can resolve disputes faster and cheaper than a lawsuit.
5. File a complaint with Maine’s insurance regulator if the insurer’s conduct appears unfair
If the insurer ignores pertinent information or engages in tactics that appear to be unfair settlement practices, you may file a consumer complaint with the Maine Bureau of Insurance. The Bureau can investigate and sometimes obtain corrective action or require an insurer to explain its handling of a claim.
Maine Department of Professional and Financial Regulation, Bureau of Insurance (consumer page): https://www.maine.gov/pfr/insurance/
For statutory background, insurance regulation in Maine is generally located in Title 24-A of the Maine Revised Statutes: https://legislature.maine.gov/statutes/24-A/
6. Know when to hire an attorney and how counsel can help
An attorney can:
- Evaluate the insurer’s offer and your claim value.
- Draft and send demand letters that emphasize legal exposure and damages the insurer faces if the claim proceeds to litigation.
- Handle communications so you avoid inadvertently weakening your claim (for example, by signing a broad release).
- File suit and manage discovery, motions, and trial if negotiations fail.
If you are considering suit, consult counsel promptly to protect deadlines and preserve evidence. The Maine court system provides resources on filing civil actions and small claims procedures: https://www.courts.maine.gov/
7. Litigation as a last resort — what to expect
If negotiation, mediation, or regulator intervention fail, filing a lawsuit may be necessary. Litigation involves pleadings, discovery (exchanging documents and taking depositions), motions, possible settlement talks, and potentially a trial. Litigation takes time and incurs costs, so attorneys will weigh the likely recovery against costs and the applicable deadlines before filing.
8. Practical preservation steps while you decide
- Keep a contemporaneous file with dates, content of calls, names and positions of insurer representatives, and copies of letters and medical bills.
- Do not accept a quick check paired with a full release until you are certain it’s adequate.
- Make backup copies of photos and medical records.
When a regulatory complaint helps
The Bureau of Insurance cannot award you money directly in many cases, but it can investigate insurer practices and sometimes prompt an insurer to reassess a claim or clarify why it made a particular valuation. Use the Bureau’s consumer complaint process after you have attempted negotiation and documented why you believe the offer is unfair.
Key legal considerations specific to Maine
- Insurance in Maine is governed by statutes and administrative rules found in Title 24-A. Reviewing the relevant portions of Title 24-A can help you and your attorney identify potential unfair claim settlement practices by an insurer: https://legislature.maine.gov/statutes/24-A/.
- Act promptly to preserve your claim. Different claims have different deadlines (for example, deadlines that apply to filing lawsuits or bringing particular statutory claims). Ask an attorney about time limits that affect your case.
How much will it cost to challenge the offer?
Costs vary. Many personal injury attorneys work on contingency (a fee taken from any recovery). Others charge hourly. You should discuss fees, costs advanced by the lawyer, and how those costs are repaid if you do not recover before hiring counsel.
Helpful Hints
- Do not sign a broad release or settlement check without confirming the full scope of damages is covered.
- Put critical communications in writing and send them by a method that creates a record (email or certified mail).
- Preserve all evidence from the accident scene—photos, damaged items, clothing—and keep them in a safe place.
- Document ongoing symptoms and treatment in a journal; insurance adjusters pay close attention to consistency and continuity of treatment.
- Get a written estimate for future medical care if your injuries will require ongoing treatment—this helps when negotiating for future damages.
- Ask your medical providers about any liens they may assert; an attorney can help negotiate or account for liens in settlement talks.
- If the insurer refuses reasonable settlement offers and its conduct appears unfair, file a complaint with the Maine Bureau of Insurance: https://www.maine.gov/pfr/insurance/.
- Consult an attorney before filing suit to confirm applicable deadlines and to evaluate whether a demand, mediation, or litigation strategy is likely to produce a better net recovery.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. It does not create an attorney-client relationship. Laws and procedures change, and applications vary with specific facts. For advice tailored to your situation, consult a licensed Maine attorney.