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Detailed answer — how to respond step-by-step under New York law

1. Ask for the offer in writing and read it carefully

If the insurer says an offer is final, request a written settlement offer and a copy of the proposed release or agreement. Do not accept verbal promises. The language in a signed release can extinguish your right to sue for future care and damages, so you must know exactly what you would give up.

2. Confirm what the offer covers

Check whether the insurer’s figure includes:

• medical bills paid and unpaid;
• future medical treatment and estimated future costs;
• lost wages and reduced earning capacity;
• pain and suffering;
• property damage; and
• deductions for liens, subrogation, medical payment offsets, or attorney fees.

3. Value the claim before you decide

Make a realistic settlement valuation. A useful approach:

1. Sum your documented medical bills and reasonable future care estimates.
2. Add documented lost wages and an estimate of future lost earnings if applicable.
3. Estimate non-economic damages (pain and suffering) using similar-case benchmarks — or by consulting an attorney for a fair range.
4. Subtract anticipated attorney fees, costs, and lien obligations to see your net recovery.

Compare that net recovery to the insurer’s written offer and to the risk and cost of filing suit and going to trial.

4. Watch the statute of limitations and preserve your rights

Filing a lawsuit is sometimes necessary to avoid losing the right to sue. For many personal injury claims in New York, the statute of limitations is three years from the accident (see New York Civil Practice Law & Rules (CPLR) § 214). If you don’t file before the deadline, you can lose your right to recover. For other claim types (e.g., breach of contract), different deadlines apply. See the CPLR for details: CPLR § 214 (statute of limitations for personal injury).

5. Beware releases and future-care language

A general release that settles “all claims” can bar future claims for complications or previously undiagnosed conditions. If your treatment is ongoing or you have a serious injury, a broad release can be risky. Have any proposed release reviewed so you understand whether it reserves claims for future treatment or removes them entirely.

6. Consider negotiation tactics and alternatives

Even when an insurer says the offer is final, you can often:

• provide a detailed demand packet (medical records, itemized bills, wage documentation, and a demand letter outlining damages);
• ask for a short deadline extension to get more information;
• submit a reasoned counteroffer tied to documentation; and
• request mediation or neutral evaluation to move past an impasse.

7. Watch for unfair settlement practices

New York law prohibits certain unfair claim settlement practices by insurers. If you believe the insurer acted in bad faith — for instance, by refusing reasonable investigation or by misrepresenting the terms — you can raise those issues with the insurer or the New York State Department of Financial Services. See New York Insurance Law § 2601 for unfair practices: Insurance Law § 2601.

8. Handle liens, subrogation, and government benefits

Before you accept any money, identify potential liens or subrogation claims (medical providers, health insurers, Medicare/Medicaid). Those claims can significantly reduce what you receive. Federal Medicare secondary-payer rules may require repayment if Medicare paid for care related to the injury.

9. Know when to accept or walk away

Accept if the net amount fairly compensates you for current and likely future losses after fees and liens, and if that outcome is better than the realistic result at trial (considering risk, time, and cost). Walk away and consider filing suit if the offer is unreasonably low and you have documentation and legal grounds to pursue more.

10. Get legal help early

Hiring an attorney can help you value your claim, negotiate, preserve rights, and handle liens and releases. Many New York personal-injury attorneys work on contingency (they get paid only if you recover). If you engage an attorney, provide the written offer and all supporting records so they can advise whether to accept, counter, or litigate.

Helpful hints

• Never sign a release without getting the written offer and having it reviewed.
• Keep copies of all medical records, bills, pay stubs, and correspondence with the insurer.
• Ask the insurer for a breakdown of how the offer was calculated.
• Get a reasonable time extension to consult an attorney if you need it.
• Remember the statute of limitations — filing a timely lawsuit preserves leverage and rights (CPLR § 214).
• Check for potential Medicare, Medicaid, or health-plan liens before settlement.
• If you suspect bad faith, you can contact the New York State Department of Financial Services for consumer help: DFS — Insurance Consumers.