Detailed answer — what you can do next

Insurance companies sometimes label an offer as a “final” offer. That label is not binding on you. If the insurer refuses to raise its offer, consider the following paths. Which path fits you depends on the type and value of your claim, what your insurance policy allows, and how much risk and expense you are willing to accept.

1. Re-check the claim and demand more information

Before escalating, review the insurer’s position. Ask the company for the factual and documentary basis of its valuation (repair estimates, medical records, bills, depreciation schedules, explanations of benefits). You may discover gaps you can rebut. Put your counterarguments in a clear written demand with supporting documents.

2. Use any policy dispute procedures (appraisal, arbitration)

Many property and first-party insurance policies include an appraisal clause: each party selects an appraiser and the appraisers select an umpire to determine the amount of loss. If your policy has an appraisal clause, invoking appraisal can force an independent determination of the amount of loss. Review your policy carefully and act promptly to meet any notice requirements.

3. Mediation or neutral evaluation

Insurance companies often agree to mediation or neutral evaluation. Mediation can produce a better result than the insurer’s “final” offer while avoiding the time and cost of a lawsuit.

4. File a lawsuit (and consider venue)

If demands and mediation fail, you can sue. For personal injury and other tort claims, Massachusetts generally sets a three-year statute of limitations from the injury date (see M.G.L. c. 260, § 2A). For contract claims, the limitation is typically six years (M.G.L. c. 260, § 2). See these statutes for details: M.G.L. c. 260, § 2A (torts) and M.G.L. c. 260, § 2 (contracts). Choose the court with appropriate jurisdiction (small claims for smaller property claims; District or Superior Court for larger claims).

5. Bring a consumer protection or insurance-practice claim

Massachusetts law provides statutory tools to challenge unfair insurance settlement practices. You can bring claims under Chapter 176D (unfair or deceptive practices in the business of insurance) and Chapter 93A (Massachusetts consumer protection law) if the insurer engaged in unfair settlement tactics or misrepresentations. See Chapter 176D: M.G.L. c. 176D and Chapter 93A: M.G.L. c. 93A, § 11. These statutes can provide remedies beyond simple contract relief, including monetary damages and attorney’s fees in appropriate cases.

6. File a complaint with the Massachusetts Division of Insurance

If you believe the insurer violated Massachusetts insurance regulations or acted unfairly, you can file a complaint with the Massachusetts Division of Insurance: Massachusetts Division of Insurance. The Division can investigate and may help resolve consumer complaints.

7. Evaluate costs and exposure

Suing or pursuing appraisal and arbitration costs time and money. Compare the insurer’s offer to your likely recovery after attorney fees, expert costs, and litigation risks. For smaller losses, accepting the offer or using the small claims process (see the Massachusetts small claims guide) may be more practical: Massachusetts small claims process.

8. Preserve evidence and deadlines

Preserve all records: photos, repair estimates, medical bills, correspondence with the insurer, witness statements, and receipts. Note and track deadlines, including the statute of limitations referenced above. Failing to preserve evidence or missing deadlines can weaken your claim.

9. Consider legal representation

An attorney can evaluate whether you have a strong claim under c.93A or c.176D, prepare pre-suit demands, negotiate with the insurer, and pursue litigation if needed. For personal injury claims, many attorneys handle cases on contingency, meaning they get paid only if you recover.

How Massachusetts law affects your options

Massachusetts does not leave claimants without remedies when an insurer refuses to budge. Key legal frameworks include:

• M.G.L. c. 176D — rules against unfair insurance business practices. (text)
• M.G.L. c. 93A — consumer protection statute that applies to unfair or deceptive acts and practices; it can apply to insurers and can provide monetary remedies and fee-shifting in appropriate cases. (text)
• Statutes of limitation — commonly three years for tort claims (M.G.L. c. 260, § 2A) and six years for contract claims (M.G.L. c. 260, § 2). (tort, contract)

Using these legal avenues typically requires careful timing and specific procedural steps; an attorney can advise you on the right path for your case.

Practical consequences of refusing to accept the insurer’s offer

Refusing the insurer’s offer can lead to a better settlement, but it can also trigger a lengthy dispute with costs and delays. If you file suit and recover an amount higher than the insurer’s last offer, you may recover your full damages and possibly additional statutory relief (depending on the theory and facts). If you lose, you must weigh whether the recovered amount justifies legal costs.

When to hire an attorney

Hire an attorney if:

• The claim involves significant damages (medical bills, lost wages, substantial property loss).
• The insurer denies liability or relies on complicated coverage defenses.
• You suspect the insurer’s conduct may be unfair or deceptive under c.176D or c.93A.
• You face tight limitation deadlines or need to start appraisal/arbitration quickly.

An attorney can draft a strong demand, preserve your claims, and pursue statutory remedies when necessary.