What to do when an insurance company says its offer is final — Tennessee FAQ

Short answer

If an insurance company tells you its offer is final, do not rush to accept. Treat the offer as a negotiation position, gather evidence of your losses, check your policy and any deadlines, and consider getting an attorney to evaluate the offer. If the insurer is being unreasonable or violating Tennessee insurance rules, you can file a complaint with the Tennessee Department of Commerce & Insurance or pursue a lawsuit before any applicable time limits run.

Detailed answer

1. Understand what “final” usually means

Insurers often call an offer “final” to pressure claimants. In many cases, it is a last settlement demand from the adjuster’s viewpoint, not a legally irreversible decision. The company may still negotiate further — especially if you present new evidence, obtain medical records, or hire counsel. Accepting a “final” offer usually requires signing a release. That release can bar you from later pursuing additional damages, so do not sign without being sure the amount fairly compensates you.

2. Check your insurance policy and deadlines

Read your policy and any correspondence carefully. Note any deadlines to file suit, to submit additional documentation, or to appeal a decision. Tennessee has rules and statutes that affect insurance practices and civil actions. For general information about Tennessee insurance laws and consumer protections, see the Tennessee Department of Commerce & Insurance: https://www.tn.gov/commerce/insurance.html. For the state insurance code (Title 56), see the Tennessee Code on the Tennessee General Assembly site: https://www.capitol.tn.gov/.

3. Document and quantify your damages

Insurers base offers on the evidence you provide. Put together:

• All medical records, bills, and future treatment estimates;
• Proof of lost wages, including pay stubs and employer statements;
• Receipts for out-of-pocket expenses and property damage estimates;
• Photographs, witness statements, and a timeline of the incident.

Presenting clear documentation can change an insurer’s view and lead to a higher offer.

4. Ask for a written explanation of how the insurer calculated the offer

Request an itemized breakdown of how the company reached its number. Ask for the policy language, valuation reports, medical reviews, and any reserve figures used to justify the amount. If the explanation is vague, ask for clarification in writing before you respond.

5. Consider negotiation steps

Common responses when told an offer is final:

• Submit a counter-demand with supporting documentation and a clear number or range that reflects your damages;
• Request mediation or appraisal if the policy contains those dispute-resolution options;
• Ask for time to obtain independent medical opinions or estimates;
• Tell the insurer you are documenting everything and will consider regulatory remedies and litigation if necessary.

6. Know your options if the insurer refuses to budge

If additional negotiation fails, you usually have these options:

• Hire a Tennessee attorney to evaluate and, if appropriate, file a lawsuit. An attorney can also tell you whether the offer is within the range of fair compensation and whether signing a release would be harmful.
• Use alternative dispute resolution (mediation or arbitration) if the policy allows or both sides agree.
• File a complaint with the Tennessee Department of Commerce & Insurance if you believe the insurer acted unfairly or violated state rules: File a complaint.

7. Be mindful of statutes of limitations and procedural deadlines

Legal claims must be filed within Tennessee’s time limits. Missing the applicable deadline can prevent you from pursuing a lawsuit even if the insurer’s offer is inadequate. If you are unsure what deadline applies, consult an attorney promptly. For the Tennessee Code and to research specific statutory deadlines, see the Tennessee General Assembly site: https://www.capitol.tn.gov/.

8. When to talk to an attorney

Consider hiring an attorney if:

• The insurer’s “final” offer is much lower than documented losses;
• Liability or damages are disputed;
• The claim involves serious injury, permanent impairment, or complex losses;
• The insurer denies coverage or refuses to explain its basis for denying higher compensation.

An attorney can estimate the case value, negotiate on your behalf, protect your rights, and advise about filing suit or a bad-faith claim under Tennessee law.

Helpful Hints

• Don’t sign a full release until you fully understand what you are giving up. A release often ends your right to seek more money later.
• Keep all communication in writing when possible. Follow up verbal conversations with an email or letter summarizing what was said.
• Get independent medical opinions if the insurer relies on a one-time review or inconsistent records.
• Obtain copies of your full claim file, including adjuster notes and internal reports, by requesting them in writing.
• If you suspect unfair or bad-faith handling, document delays, incomplete investigations, and inconsistent statements — these facts help a regulatory complaint and potential litigation.
• Act quickly. Even if you plan to negotiate, preserve evidence and watch filing deadlines.
• Use the Tennessee Department of Commerce & Insurance as a resource for consumer help and to file complaints: https://www.tn.gov/commerce/insurance.html.

Where to get reliable Tennessee resources

• Tennessee Department of Commerce & Insurance — consumers and complaints: https://www.tn.gov/commerce/insurance/consumers/file-complaint.html
• Tennessee General Assembly — Tennessee Code (search Title 56 for insurance laws): https://www.capitol.tn.gov/

Disclaimer: This article explains general principles of Tennessee insurance and claims handling. It is not legal advice. For advice about your specific situation, consult a licensed Tennessee attorney.