Detailed Answer

Short version: If you disagree with the insurance company’s final settlement offer after an injury, you can negotiate, ask for a written breakdown, file a formal dispute (demand/appeal), request mediation or arbitration if your policy or the insurer allows it, file a complaint with the New Jersey Department of Banking and Insurance, or—if necessary—file a lawsuit before the statute of limitations runs. Preserve all records and consider hiring an attorney to evaluate whether you have a stronger claim for a higher settlement or a bad-faith denial.

Step-by-step approach you can follow

1. Carefully review the written offer and the release language.

   Insurers typically send a written “final offer” accompanied by a release document. Read every sentence: the release usually ends all claims against the insurer and the person/party identified in the release. If you sign it, you generally cannot pursue further payment for that injury.

2. Ask the insurer for a written breakdown.

   Request an itemized explanation of how they calculated the offer (medical bills paid, future care, wage loss, pain and suffering amounts, offsets). Ask for copies of any medical-legal or independent medical examinations (IMEs) on which the insurer relied.

3. Compare the offer to your damages.

   Collect all medical records, itemized bills, wage statements, proof of non-economic harms (pain, loss of enjoyment, scarring), and any ongoing care needs. Estimate future treatment costs and lost earning capacity if applicable. Compare that total to the insurer’s offer and note gaps.

4. Send a reasoned written demand or counter-offer.

   Prepare a concise written demand that states: (a) why the offer is too low, (b) your calculation and supporting documents, and (c) a deadline for response. Keep the tone factual. This creates a paper trail if you later file suit or a regulatory complaint.

5. Consider alternative dispute resolution (ADR).

   If your policy or the insurer’s settlement letter offers mediation or arbitration, decide whether ADR makes sense. Mediation is voluntary and can produce faster results with lower costs. Arbitration may be binding—read the policy before agreeing.

6. File a complaint with the New Jersey Department of Banking and Insurance (DOBI) if the insurer’s conduct appears unfair.

   If the insurer refuses to explain its decision, denies valid documentation, delays unreasonably, or appears to act in bad faith, you can file a consumer complaint with DOBI. DOBI can investigate unfair claim-settlement practices and sometimes get the insurer to re-evaluate a claim. More information and complaint submission options are available at the New Jersey DOBI consumer pages: https://www.state.nj.us/dobi/consumers/.

7. Know and preserve your deadline to sue.

   In New Jersey, most personal injury lawsuits must be started within two years from the date of the injury (see the New Jersey statutes and court resources about limitations). If you want to preserve the right to sue, you must file before the statute of limitations expires; otherwise the insurer can rely on that defense even if their offer was unfair. For information about New Jersey laws and statutes, see the New Jersey Legislature’s statutes page: https://www.njleg.state.nj.us/lawscode/.

8. Consider filing a lawsuit if settlement negotiations fail.

   Filing suit starts formal discovery and puts the claim before a judge and possibly a jury. Many cases settle after suit is filed, but litigation has costs and takes time. Consult an attorney about likely costs, potential recovery, and how long discovery and trial usually take in New Jersey courts.

9. Preserve evidence and keep records.

   Keep originals or certified copies of medical records, doctor bills, receipts, photos of injuries or accident scenes, employer wage statements, correspondence with the insurer, and notes from conversations (with dates, times, and names). Do not delete texts or emails related to the claim.

10. Get legal help where appropriate.

    An attorney experienced in New Jersey personal injury and insurance claims can evaluate whether the insurer’s offer is reasonable, whether you have a claim for bad faith or violation of unfair-settlement statutes/rules, and whether litigation is warranted. Many personal injury lawyers represent clients on contingency (they get paid only if you recover).

What “bad faith” or “unfair settlement practices” look like in New Jersey

New Jersey law and regulatory rules prohibit insurers from engaging in unfair claim-settlement practices, such as unreasonable delay or denial without investigation, misrepresenting policy provisions, or failing to promptly provide a reasonable explanation for denial. If the insurer’s conduct rises to that level, you can (1) file a complaint with the New Jersey Department of Banking and Insurance, and (2) raise those practices in litigation. The DOBI consumer pages explain how to submit complaints and what the Department can do: https://www.state.nj.us/dobi/consumers/.

Consequences of accepting the insurer’s final offer

• Most releases are broad: signing usually ends your ability to recover more money from that insurer or the identified defendant.
• Accepting sends a signal that the loss is resolved; you cannot reopen the same claim later except in very limited circumstances (fraud in the release, for example).
• Before signing, be sure the offer covers current and future medical costs and non-economic harm, or that you are willing to assume any future cost risk.

When to contact an attorney

Talk to an attorney promptly if:

• The insurer will not explain its final offer or will not produce medical reports it used;
• The offer is clearly below documented medical bills and reasonable non-economic damages;
• Your injuries are serious, permanent, or require ongoing care;
• The insurer appears to have acted in bad faith or violated settlement-practice rules;
• You face a looming statute-of-limitations deadline.

Helpful Hints

• Do not sign any release until you are sure the payment covers your present and anticipated future losses.
• Ask for the insurer’s medical reports and the notes from any independent medical examination (IME).
• Set a written deadline for the insurer to respond to your counter-offer or demand—keep it reasonable (usually 10–30 days).
• Keep a dated log of every call and contact with the insurer (names, times, what was said).
• File a DOBI consumer complaint if the insurer delays, refuses to explain its position, or ignores documentation.
• If you plan to sue, do not post detailed facts or photos of the injury on social media—these can be used by the insurer in defense.
• Ask whether the insurer’s “final offer” is conditioned on signing a release that includes a confidentiality clause; confidentiality affects your ability to talk about the case later.

Key legal timelines and where to learn more

Personal injury lawsuits in New Jersey generally must be filed within two years of the injury. For statute details and other state law resources, consult the New Jersey Legislature statutes page: https://www.njleg.state.nj.us/lawscode/. For consumer assistance and to file complaints about insurers, visit the New Jersey Department of Banking and Insurance: https://www.state.nj.us/dobi/consumers/.

Final practical tips

Be organized, act quickly when deadlines approach, and get a lawyer’s opinion before signing away rights. A reasoned written demand and a well-documented file often prompt insurers to re-evaluate a “final” offer. If negotiations stall, regulatory complaints or litigation are the main tools to continue the fight.

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