How to Respond When an Insurer Sends a Final Offer After an Injury — A Practical Maryland Guide

Disclaimer: This article is for general information only and is not legal advice. It does not create an attorney-client relationship. For advice about your specific situation, consult a Maryland-licensed attorney.

Detailed answer — step-by-step process under Maryland law

When an insurance company sends a “final” settlement offer after you were injured, you have choices. The right path depends on the type of claim (third-party liability, first-party coverage such as personal injury protection or uninsured/underinsured motorist), the size of your damages, and timing concerns like the statute of limitations. Follow these steps to preserve your rights and make a smart decision.

1. Do not sign anything immediately

Insurers often attach a release that ends your right to pursue further money for the same injury. Never sign a full release or accept payment without understanding what is being released and whether future care or lost wages remain unpaid.

2. Get the offer in writing and ask for a detailed breakdown

Request a written statement showing how the insurer calculated the offer: medical bills paid, reductions for liens or subrogation, lost wages, and an amount for pain and suffering. Ask the insurer to identify the policy and coverage limits, and to provide the policy declarations page if that is relevant.

3. Check critical deadlines: your policy and Maryland’s statute of limitations

Look in your insurance policy for any requirement that a lawsuit be filed within a stated time. Also confirm the Maryland statute of limitations for personal injury claims, which generally requires a plaintiff to file suit within three years of the injury. See Md. Code, Courts & Judicial Proceedings § 5-101: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=cj&section=5-101. Missing these deadlines can permanently bar your claim.

4. Compare the offer to your full damages

Calculate your past and expected medical bills, receipts, lost income, estimated future medical needs, physical limitations, and non-economic losses (pain and suffering). If you have ongoing treatment, document expected future costs and how the injury affects daily life. If the insurer’s offer doesn’t cover these, it likely isn’t reasonable.

5. Respond with a written counteroffer or demand letter

If the offer is insufficient, send a written response that:

• Explains why the offer is inadequate, with citation to records (medical records, bills, wage statements).
• Attaches supporting documents.
• States a reasonable monetary demand and gives a deadline for response (commonly 10–21 days).

A clear written record helps if you later file a lawsuit or a complaint with the Maryland Insurance Administration.

6. Consider alternative dispute resolution

Mediation or arbitration can resolve disputes faster and cheaper than full litigation. Courts and private neutrals offer mediation programs in Maryland. Learn more about ADR options at the Maryland Courts website: https://www.marylandcourts.gov/legalhelp/adr.

7. If negotiations fail, consider filing suit

If you cannot reach agreement, filing a civil lawsuit is the formal way to contest the insurer’s position. A lawsuit triggers discovery (exchange of evidence), depositions, and possible settlement negotiations later. For basic information about starting a civil case in Maryland, visit: https://www.marylandcourts.gov/selfhelp/civil.

8. Use regulatory and consumer tools

If you believe the insurer acted unfairly or in bad faith, you can file a consumer complaint with the Maryland Insurance Administration: https://insurance.maryland.gov/consumer/Pages/FileAComplaint.aspx. The Administration can investigate consumer complaints and explain policyholder rights, but it does not replace private litigation when a settlement dispute requires court resolution.

9. Evaluate whether to hire an attorney

Consider hiring an attorney if:

• Your medical bills and future care exceed the insurer’s offer by a substantial margin.
• Liability is contested or the case is factually complex.
• The insurer conditions payment on signing a broad release.
• There is a potential bad-faith conduct by the insurer.

Many personal injury lawyers in Maryland handle cases on contingency, which means they advance costs and get paid only if you recover money. Ask any lawyer you interview about fees, expected timeline, and likely case value.

10. Preserve evidence and your health records

Keep copies of medical records, billing statements, pay stubs for lost wages, photos of injuries/scene, witness contact information, and communications with the insurer. Records strengthen negotiations and litigation alike.

What to expect if you file suit in Maryland

Typical litigation stages:

• Pleading: filing a complaint and serving the defendant.
• Discovery: exchanging documents, written questions, and depositions.
• Motions: either side may ask the court to decide legal issues before trial.
• Settlement negotiations or mediation: most cases resolve before trial.
• Trial: if no settlement, the judge or jury decides damages and liability.

Timelines vary. Simple cases can resolve in months; complex cases may take a year or more.

Helpful Hints

• Do not give recorded statements to the insurer without knowing your rights; decline politely and say you will provide a written statement through counsel.
• Keep a treatment log: note dates, symptoms, pain levels, and functional limits.
• Send written responses by certified mail (return receipt) so you have proof of delivery.
• Avoid signing a full release that covers unknown future claims without consulting an attorney.
• Read your insurance policy for suit deadlines or notice requirements right away.
• If your damages are small, check Maryland District Court small-claims procedures as a lower-cost option (see Maryland Courts site for details): https://www.marylandcourts.gov/district/selfhelp/smallclaims.
• If you suspect insurer bad faith, document denials, delays, or inconsistent reasons for refusal and consider contacting the Maryland Insurance Administration: https://insurance.maryland.gov/consumer/Pages/FileAComplaint.aspx.
• Keep communications concise and in writing; avoid arguing by email or text. Let the record speak for you.

Decision time usually balances the insurer’s final offer against the cost, time, and uncertainty of litigation. Use the steps above to preserve your rights and to make an informed decision about whether to accept, counter, mediate, or sue.