Detailed answer — Your options after a low insurance settlement offer (Nevada)
After an accident, you can take several steps if the insurance company’s settlement offer is too low. This answer explains the common paths under Nevada law, when to use each path, and the basic timelines to watch. This is educational information only and not legal advice.
1. Immediate practical steps (document and communicate)
– Preserve all evidence: photos, medical records, police reports, repair estimates, bills, wage-loss documentation, and any written or recorded communications with the insurer.
– Send a clear demand letter to the insurer that states your facts, injuries, medical treatment, and a specific settlement demand. Keep copies of everything you send and receive.
– If the insurer sends a written offer, keep it. If an adjuster makes verbal offers, follow up with a written request that the insurer confirm their offer in writing.
2. Contract-based remedies (follow the policy)
Review your insurance policy to see what internal remedies or alternative dispute resolution (ADR) it requires. Typical clauses include:
- Appraisal clause (commonly used in property/auto damage disputes): a neutral appraiser evaluates the damage and, if appraisers disagree, an umpire may decide.
- Arbitration clause: the policy may require binding or non-binding arbitration to resolve certain disputes.
- Notice and cooperation requirements: the policy will often require you to provide notice and cooperate with the insurer’s investigation — do that promptly to avoid technical denials.
If the policy contains an appraisal or arbitration clause, you generally must follow it before suing on the contract.
3. Administrative complaint with Nevada Division of Insurance
You can file a complaint with the Nevada Division of Insurance (DOI) if you suspect unfair claim practices. The DOI cannot give you a settlement but can investigate insurer conduct and sometimes prod resolution. File or learn more at the Division of Insurance website: https://doi.nv.gov/.
4. Demand for better settlement and negotiation
Before filing suit, many claimants use a formal demand package and escalate negotiations. Common negotiation steps:
- Send a supplemental demand with updated medical records and a current settlement figure tied to specific damages (medical bills, future care, lost wages, pain and suffering).
- Use mediation to force a neutral evaluation and settlement discussion (often quicker and cheaper than litigation).
5. Small claims court (for modest damages)
If your damages fall within Nevada small-claims limits, you can sue the at-fault party in small claims court without an attorney. Small claims courts handle lower-dollar disputes with simplified procedures. Check current limits and procedures at the Nevada courts website.
6. Filing a lawsuit — breach of contract and bad-faith claims
If negotiations and administrative routes fail, you can sue. Two common causes of action are:
- Breach of contract: if the insurer refuses to pay under the policy terms.
- Bad-faith insurance claim: Nevada law recognizes tort claims when an insurer unfairly denies or unreasonably delays payment. Nevada’s insurance statutes address unfair claim settlement practices; see NRS Chapter 686A: https://www.leg.state.nv.us/NRS/NRS-686A.html. Filing a bad-faith claim often requires showing the insurer lacked a reasonable basis for denial and knew or recklessly disregarded that basis.
Damages in a bad-faith suit can include the underlying policy benefits, consequential damages (such as emotional distress or extra expenses resulting from the denial), and in some situations punitive damages. Courts examine the insurer’s conduct and whether it complied with Nevada’s insurance laws and its own policy.
7. Timeline and statute of limitations
Time limits matter. For most personal-injury lawsuits in Nevada, the statute of limitations is generally two years from the injury date. That means you typically must file a civil suit within two years, or you risk losing the right to sue. See Nevada Revised Statutes for limitations: NRS Chapter 11 (statutes of limitation). Always confirm precise filing deadlines that apply to your situation.
8. Evidence and proving value
To counter a low offer, assemble proof of damages and liability:
- Medical records and treatment notes.
- Medical bills and future care estimates.
- Lost-wage documentation (pay stubs, employer statements).
- Repair estimates and receipts for property loss.
- Witness statements and police reports proving fault.
Strong documentation strengthens mediation, arbitration, and courtroom outcomes.
9. When to hire an attorney
Consider retaining an attorney if:
- Your injuries are serious or involve long-term care.
- The insurer refuses to negotiate in good faith.
- Liability is disputed or multiple parties are involved.
- The potential recovery exceeds the small-claims limit.
An attorney experienced with Nevada insurance and personal injury law can evaluate bad-faith claims, negotiate more effectively, and, if necessary, file suit within deadlines.
Important disclaimer: This article is for educational purposes only and does not constitute legal advice. For advice about a specific situation, consult a licensed Nevada attorney.
Helpful Hints — Getting the best result
- Start a claim file: keep a single folder (digital or physical) with every document, medical record, photo, and correspondence.
- Send your demand letter by certified mail and keep proof of delivery.
- Request a copy of your entire insurance policy and any internal notes or statements the insurer relied on.
- Ask about the insurer’s dispute resolution options (appraisal, arbitration, mediation) and deadlines to invoke them.
- Talk to more than one attorney for a free case evaluation before deciding. Many personal-injury attorneys offer free consultations and work on contingency.
- Act early—meet all policy notice requirements and file suits before the statute of limitations runs.
- If you suspect bad faith (persistent delays, failure to investigate, or not responding), file a complaint with the Nevada Division of Insurance at https://doi.nv.gov/.