Detailed Answer
If an insurer’s highest settlement offer does not cover your medical treatment and lost wages in Nebraska, you have several practical options. The correct choice depends on the facts: the policy limits, who caused the injury, other available coverages, the strength of your evidence, and how close you are to filing deadlines. Below are steps and legal paths commonly used in Nebraska.
1) Verify insurance coverage and policy limits
First, confirm exactly what insurance coverages apply and how much each policy will pay. Look for:
- Bodily injury liability limits of the at-fault motorist or other defendant.
- Uninsured/underinsured motorist (UM/UIM) coverage on your own policy.
- Personal Injury Protection (PIP) or medical payment (MedPay) coverage on your policy.
These coverages can increase the money available for treatment and lost wages. Ask the insurer for a copy of the policy declaration page and the exact limits in writing.
2) Document and prove your damages
Insurers will reduce settlements when the claim lacks documentation. Build a clear paper trail:
- Medical records, itemized bills, and treatment plans.
- Evidence of lost wages: pay stubs, employer statements, tax records, and timesheets.
- Expert reports if permanent injury or lost future earnings are at issue (vocational experts, life-care planners).
Send a revised demand letter attaching updated bills and wage verification. A well-documented demand often increases settlement value.
3) Negotiate further or ask for a structured settlement
Return to the insurer with the updated demand and a clear bottom-line number. Consider these negotiation tools:
- Explain non-economic losses (pain and suffering) and future care needs.
- Ask whether the insurer will re-review claims once additional records are submitted.
- Propose a structured settlement to spread payments over time if the insurer cannot pay a large lump sum but can pay more over years.
4) Use alternative dispute resolution
Mediation or arbitration can resolve disputes without a full trial. Mediation is common and often required or encouraged before litigation. A neutral mediator helps both sides reach a compromise. Arbitration can be binding or nonbinding depending on the agreement.
5) Consider additional or third-party sources of recovery
Look for other potential payors:
- Other at-fault parties (multiple drivers, property owners, manufacturers).
- Your UM/UIM carrier if the at-fault party lacks sufficient insurance.
- Workers’ compensation if the injury occurred at work—workers’ comp covers medicals and wage replacement but affects fault claims.
6) File suit before the statute of limitations runs
If the insurer won’t pay a fair amount, filing a lawsuit starts the formal legal process. In Nebraska, most personal injury claims must be filed within the state statute of limitations. For actions to recover damages for personal injury, Nebraska law generally sets a four-year limit; see Neb. Rev. Stat. § 25-207 for specifics and any exceptions that might apply: Neb. Rev. Stat. § 25-207. Filing on time preserves your right to sue—missing the deadline usually prevents any recovery.
7) Evaluate claims against the insurer (breach of contract or bad-faith)
If the insurer wrongfully refuses to evaluate or pay a valid claim, you may have a claim for breach of contract and in some cases for bad-faith handling of the claim. Nebraska law on insurer duties and potential remedies is fact-specific. Before pursuing either route, consider talking with an attorney to evaluate whether the insurer’s conduct crosses the legal threshold. You can also file a complaint with the Nebraska Department of Insurance: Nebraska Department of Insurance – File a Complaint.
8) Hire an attorney
An attorney can:
- Evaluate coverage and identify additional payors.
- Negotiate with insurers and their defense counsel.
- Prepare and file suit if necessary and represent you at mediation, arbitration, or trial.
Many personal injury lawyers work on contingency (they get paid only if you recover). If you hire counsel, be careful before signing any release—signing away your rights ends your ability to pursue additional money.
Hypothetical example
Suppose you are injured in a crash. Medical bills and projected care total $25,000. You miss three weeks of work documenting $7,000 in lost wages. The at-fault driver’s insurer offers $10,000. Steps you might take: collect and send complete medical and wage records to the insurer; check whether you have UM/UIM or MedPay on your policy; ask the insurer to re-evaluate; consider mediation; if the offer remains insufficient, consult an attorney and, if appropriate, file suit before the statute of limitations runs (see Neb. Rev. Stat. § 25-207).
Practical considerations and costs
Lawsuits take time and may involve attorney fees, court costs, expert fees, and discovery expenses. Weigh the possible increase in recovery against the time, risk, and expense of continued litigation. Your attorney should explain probable costs and potential outcomes.
Important: laws change and every case is different. Under Nebraska law, timing, facts, and policy language matter. For questions about bad-faith claims, contract disputes with insurers, or filing suit, consult an attorney licensed in Nebraska or contact the Nebraska Department of Insurance for consumer help: https://doi.nebraska.gov/.
Disclaimer
This information is educational only and is not legal advice. It does not create an attorney-client relationship. For advice specific to your situation, consult a licensed Nebraska attorney.
Helpful Hints
- Don’t accept the first low offer. Ask for a written denial and the basis for the insurer’s valuation.
- Keep copies of all medical records, bills, receipts, and communication with the insurer.
- Obtain and submit employer documentation for lost wages—pay stubs and an employer letter increase credibility.
- Check your own policy for UM/UIM, PIP, or MedPay coverages that could supplement recovery.
- Before signing any release, confirm it covers only the payment you accept and does not waive future claims you haven’t yet discovered.
- File suit before the Nebraska statute of limitations expires. See Neb. Rev. Stat. § 25-207: https://nebraskalegislature.gov/laws/statutes.php?statute=25-207.
- If you suspect bad faith or unfair claim settlement practices, file a complaint with the Nebraska Department of Insurance: https://doi.nebraska.gov/consumers/file-complaint.
- Consider mediation to avoid the time and expense of trial.