How to contest an insurance company’s final offer after an injury in Texas

Disclaimer: This article is for general information only and is not legal advice. Laws change and every case is different. Consult a licensed Texas attorney for advice about your specific situation.

Quick summary

If you were injured and the insurer sends a final offer you believe is too low, you can respond in steps: gather evidence, send a clear written demand, negotiate, use contract dispute tools (appraisal, mediation, arbitration) if available, file a complaint with the Texas Department of Insurance, and, if necessary, file a lawsuit before the statute of limitations runs. Texas law provides consumer protections for insurance claim handling under the Texas Insurance Code, and you should preserve deadlines and documentation at every step.

Detailed answer — step‑by‑step process under Texas law

1. Read your policy and the insurer’s offer carefully

Start by reviewing your insurance policy, declarations page, and the insurer’s written “final” offer. Look for clauses that affect dispute resolution: appraisal clauses (common in property policies), arbitration agreements, time limits for filing suit, and requirements for notice or demand. The policy contract governs many dispute options.

2. Assemble and preserve evidence

Collect and keep all medical records, bills, receipts, photos of injuries and property damage, police reports, wage‑loss documentation, correspondence with the company, and any expert reports. Preserve evidence and communications; many claims hinge on clear records.

3. Prepare and send a written demand or rebuttal

Before filing formal actions, send a concise written demand that explains the damages you claim, attaches supporting documents, and identifies defects in the insurer’s valuation. State a specific dollar demand or a range, cite policy coverages, and set a reasonable deadline for response. Keep the tone professional and factual. A well‑organized demand often restarts negotiations.

4. Use contractual dispute processes when appropriate

If the policy contains an appraisal clause (often in property claims), appraisal is a binding or semi‑binding process for valuing loss; invoke it in writing if you want valuation only. If the policy requires arbitration, review the timeline and rules carefully. These clauses can alter remedies and timelines, so follow contract language strictly.

5. File a complaint with the Texas Department of Insurance (TDI)

If negotiations stall or you suspect unfair claim handling, you can file a consumer complaint with TDI. TDI can investigate and sometimes get the insurer to reopen a claim or correct improper conduct. Information and filing instructions are at the Texas Department of Insurance consumer pages: https://www.tdi.texas.gov/consumer/claims/index.html and the complaint start page: https://www.tdi.texas.gov/consumer/complaint/index.html.

6. Consider statutory remedies under the Texas Insurance Code

Texas law prohibits unfair or deceptive trade practices by insurers (Texas Insurance Code Chapter 541) and sets duties and timelines for prompt claim handling in Chapter 542. If an insurer violates these rules, the insured may have statutory claims that can lead to extra damages, attorney’s fees, or other remedies. See the statutes: Chapter 541 — Unfair or Deceptive Acts: https://statutes.capitol.texas.gov/Docs/IN/htm/IN.541.htm; Chapter 542 — Prompt Payment of Claims: https://statutes.capitol.texas.gov/Docs/IN/htm/IN.542.htm.

7. Know the litigation deadline — statute of limitations for personal injury

If you will sue a tortfeasor (a person who caused the injury), the general deadline to file a personal injury lawsuit in Texas is two years from the date of injury under the Texas Civil Practice & Remedies Code §16.003. Missing that deadline typically bars your claim. Review the statute: https://statutes.capitol.texas.gov/Docs/CP/htm/CP.16.htm#16.003.

8. File suit if negotiations and administrative remedies fail

If the insurer’s final offer still fails to cover your provable damages and administrative remedies do not resolve the dispute, you may file a civil lawsuit. A lawsuit preserves legal claims against the insurer or the at‑fault party. Suits can seek contract damages, bad faith or statutory penalties (where available), medical costs, lost wages, and pain and suffering. Consult a Texas attorney to evaluate pleadings, venue, and posture, and to make sure you meet all statutory and procedural requirements.

9. When to hire an attorney

Consider hiring a lawyer if: the insurer’s offer is far below provable losses; you face complex causation or permanent injury issues; your claim involves uncovered policy defenses; or you want someone to enforce statutory remedies such as those under Chapters 541 or 542. An attorney can handle negotiation, prepare demand letters, advise about appraisal/arbitration, file a TDI complaint, and litigate if necessary.

Common legal authorities and resources (Texas)

• Texas Insurance Code, Chapter 541 (Unfair Methods of Competition and Deceptive Acts): https://statutes.capitol.texas.gov/Docs/IN/htm/IN.541.htm
• Texas Insurance Code, Chapter 542 (Prompt Payment of Claims): https://statutes.capitol.texas.gov/Docs/IN/htm/IN.542.htm
• Texas Civil Practice & Remedies Code §16.003 – Limitations (personal injury 2‑year rule): https://statutes.capitol.texas.gov/Docs/CP/htm/CP.16.htm#16.003
• Texas Department of Insurance — claims and complaint information: https://www.tdi.texas.gov/consumer/claims/index.html and https://www.tdi.texas.gov/consumer/complaint/index.html

Helpful Hints

• Act quickly: preserve evidence, get medical care, and track deadlines. Statutes of limitations can permanently bar claims.
• Put everything in writing. Oral promises or statements are hard to enforce.
• Document economic losses precisely: medical bills, receipts, pay stubs for lost wages, and repair estimates.
• Keep a claim file with dates, names of adjusters, call notes, and copies of all communications.
• Do not sign releases or full‑settlement documents until you understand they cover all present and future claims for this injury.
• If a policy includes appraisal or arbitration, follow the contract exactly. Missing a contractual step can forfeit rights.
• Filing a TDI complaint does not replace the right to sue, but it can prompt a regulator review and help resolve mishandling.
• If you hire an attorney, ask how fees are charged and what additional costs you may owe (e.g., expert fees, court costs).

If you want, I can outline a sample demand letter checklist, explain how appraisal typically works for property claims, or point you to Texas legal aid resources that may assist with low‑cost representation.