Detailed Answer

Quick summary: If you believe an insurance company’s settlement offer after an accident is unreasonably low in Montana, you can respond by preserving evidence, making a formal demand, using appraisal or dispute-resolution clauses in the policy (if any), filing a complaint with the Montana insurance regulator, and—if necessary—filing a lawsuit before the applicable statute of limitations runs. Each step increases pressure on the insurer and protects your right to pursue full recovery. This is a general guide and not legal advice.

1. Understand what the offer covers and your policy rights

Read the insurer’s written offer and your insurance policy carefully. The offer may be for property damage, medical payments, bodily injury, or may be a combined release. Identify whether the insurer is offering a full-and-final release (which would bar later claims) or a limited payment. Check the policy for dispute-resolution provisions such as appraisal, mediation, or arbitration. If the policy includes an appraisal clause, that process can force a binding or nonbinding independent valuation of property damage.

2. Preserve and organize evidence

Collect and keep all records that support a larger settlement: medical records and bills, photographs of injuries and vehicle damage, repair estimates, wage-loss documentation, police and accident reports, correspondence with the insurer, and statements from witnesses. Good documentation strengthens a demand and any later complaint or lawsuit.

3. Send a formal demand and deadline

Prepare a clear, written demand letter that lays out the facts, summarizes your injuries and damages, and states the dollar amount you seek. Attach supporting records and a deadline for response (for example, 14–30 days). Send the demand via a trackable method and keep a copy. The demand letter helps establish that you attempted to resolve the claim before pursuing administrative or court remedies.

4. Use policy dispute processes (appraisal, mediation, arbitration)

If your policy has an appraisal clause for property damage, you may be able to initiate appraisal to get an independent valuation. If it has mediation or arbitration clauses for liability or bodily injury, those processes may be faster and cheaper than court. Read the policy and follow the procedures exactly. If the insurer refuses to honor contractual dispute procedures, note that refusal in any complaint you file later.

5. File a complaint with the Montana insurance regulator

If the insurer’s conduct appears unfair (refusing communication, denying coverage without basis, failing to investigate), you can file a consumer complaint with the Montana Commissioner of Securities and Insurance. The regulator can investigate claim-handling practices and sometimes help obtain information or corrective action. The regulator cannot give you legal advice but can enforce state insurance rules.

Montana insurance regulator: https://csimt.gov/

6. Consider a demand for appraisal of damages or offer to mediate

Even if the policy does not require it, proposing mediation or an independent appraisal can create momentum. Mediators are neutral and often help parties bridge valuation gaps. An appraisal or neutral engineer/medical expert can provide objective support for your valuation of damages or treatment needs.

7. Preserve your right to sue (statute of limitations)

If negotiations fail, you must sue before Montana’s statutory deadline for personal-injury and property-damage claims expires. Montana law establishes time limits for civil actions; review the Montana Code for the specific limitation period that applies to your claim type. Missing the deadline can bar a lawsuit.

Montana Code (general access): https://leg.mt.gov/bills/mca/

8. File suit in Montana state court if needed

If the insurer will not make a reasonable offer and administrative remedies don’t work, you can file a civil lawsuit to seek damages. A lawsuit allows discovery, depositions, and subpoena power to obtain insurer files and internal claims notes. In many insurance disputes, evidence revealed in discovery shifts settlement positions. If you sue, be aware of filing rules, court costs, and the likely timeline for resolution.

9. Consider attorney representation

An attorney experienced in Montana personal-injury and insurance claims can assess the offer’s fairness, send demand letters, pursue appraisal or mediation, file suit, and handle discovery. Many injury attorneys work on contingency (they take a percentage of recovery). Getting counsel early may improve negotiation leverage and preserve important deadlines and evidence.

10. Bad-faith and unfair-claims practices

Montana regulates insurance companies’ claim handling. If an insurer engages in unfair or deceptive claim practices, you may have administrative remedies and, in some situations, causes of action for unreasonable claim handling. The state insurance office can accept complaints and investigate patterns of unfair practices.

For more on Montana insurance regulation, see the Montana insurance regulator: https://csimt.gov/

Practical example (hypothetical)

Hypothetical: You are rear-ended and sustain vehicle damage and soft-tissue injuries. The insurer offers $2,000 for vehicle repairs and $1,500 for medical bills while your repair estimate is $6,000 and your bills and lost wages total $12,000. You should collect repair estimates and medical records, send a formal demand for the full amount with attachments, request appraisal for vehicle damage if the policy allows, offer mediation for bodily injury valuation, and—if the insurer doesn’t negotiate—file a complaint with the Montana Commissioner and preserve the right to sue before the statute of limitations expires. Consult a lawyer to evaluate a bad-faith theory or to start litigation.

Disclaimer

This information is educational and general in nature. It is not legal advice, does not create an attorney-client relationship, and does not address the specifics of your case. For advice on your situation, contact a licensed Montana attorney.

Helpful Hints

• Respond in writing to any insurer offer. Don’t rely on phone calls alone.
• Keep a chronological file of every communication with the insurer (dates, names, summaries).
• Ask the insurer for its full claims file and any recorded statements; those can be obtained via discovery if you later sue.
• Do not sign a full release until you are certain it covers all present and future losses related to the accident.
• If offered a quick lump-sum settlement, calculate future medical needs and lost-earnings potential first.
• If you suspect the insurer is acting improperly, file a consumer complaint with the Montana Commissioner of Securities and Insurance: https://csimt.gov/consumers/
• Start collecting evidence immediately—medical records and photos lose value if delayed.
• Talk to at least one Montana personal-injury attorney before accepting a low offer; many offer free initial consultations.
• If you plan to sue, note court filing deadlines now and confirm the statute that applies to your claim on the Montana Code website: https://leg.mt.gov/bills/mca/