State Farm Won’t Settle: What You Need to Know

If you’ve been in an accident and State Farm is dragging its feet or refusing to settle your claim, you’re not alone. State Farm is one of the largest insurance companies in the country, and while they advertise being a “good neighbor,” the reality can feel very different when you’re the one waiting for fair compensation. Many people across California face frustrating delays, denials, or unreasonably low offers from State Farm after filing a claim. Whether you were injured in a car crash, hurt on someone’s property, or dealing with property damage, you deserve a fair resolution. This post explains why State Farm might not be settling your claim, what you can do, and how Anderson Franco Law can help.

Why Is State Farm Refusing to Settle?

Insurance companies are businesses. Their goal is to make a profit, and one way they do that is by paying out as little as possible on claims. Even if you’ve done everything right—reporting the accident, getting medical treatment, cooperating with the adjuster—State Farm may still try to avoid settling. Some common reasons include:

State Farm claims their policyholder wasn’t at fault. Even if the police report or witness statements say otherwise, State Farm may dispute liability to avoid paying.

They say your injuries aren’t serious enough. State Farm often downplays injuries like whiplash, soft tissue damage, or back pain, especially if there’s no visible damage to the car.

They offer a lowball settlement. Sometimes State Farm offers a small amount quickly, hoping you’ll accept out of desperation. Once you take the money, you usually can’t go back and ask for more.

They want more time to investigate. In some cases, State Farm delays the claim by saying they need more documents or that the investigation is ongoing.

They think your medical treatment was excessive. State Farm might argue that you over-treated or that your medical bills are too high, even if you were simply following doctor’s orders.

They question whether your injuries are related to the accident. If you had any prior injuries, State Farm may blame those instead of the recent crash—even if your condition clearly worsened after the accident.

How Delays Affect Your Life

When State Farm won’t settle, it doesn’t just cause stress—it can seriously impact your life. You may be facing mounting medical bills, missed time from work, and uncertainty about how you’ll recover. The longer the insurance company delays, the harder it becomes to pay for your care and keep up with your regular expenses. Some people are forced to go into debt, stop treatment, or delay necessary surgeries because they can’t afford the care they need. Others experience mental and emotional strain from the constant back and forth with adjusters and the fear that they may never be fairly compensated.

What You Can Do If State Farm Won’t Settle

There are steps you can take to protect yourself and keep your case moving forward. You don’t have to accept the insurance company’s tactics.

Start by documenting everything. Keep a written record of all communications with State Farm—emails, letters, phone calls, and any statements made by adjusters. Save all your medical records, bills, photos, and receipts related to the accident.

Be cautious about what you say. Insurance adjusters are trained to get information that helps the company, not you. Avoid giving recorded statements or signing documents without talking to a lawyer.

Don’t stop medical treatment. If you need care, keep going to your doctor. Gaps in treatment can be used against you. State Farm might argue that if you stopped seeing the doctor, your injuries weren’t that bad.

Consider a demand letter. A personal injury lawyer can help draft a formal demand that lays out your injuries, the liability, and the amount you’re owed. This puts pressure on the insurance company to respond seriously.

Hire a lawyer. If State Farm won’t make a fair offer, a personal injury lawyer can negotiate on your behalf and take your case to court if necessary. Insurance companies take claims more seriously when there’s legal representation involved.

Can You Sue State Farm?

Yes, if State Farm is acting unfairly or in bad faith, you may have grounds to file a lawsuit. California law requires insurance companies to act in good faith when handling claims. If they delay, deny, or underpay without a reasonable basis, you may be able to sue them not just for the value of your claim, but for additional damages as well. These cases are known as “bad faith insurance claims,” and they can include damages for emotional distress, attorney’s fees, and even punitive damages in extreme cases.

However, in many accident claims, you are technically making a claim against the other driver’s insurance policy—not your own. In that situation, you would be suing the at-fault driver, and State Farm would defend them. Either way, you may need to file a lawsuit to get the compensation you deserve.

What If State Farm Keeps Lowballing the Offer?

You don’t have to accept a low settlement just because it’s the only one on the table. If State Farm is offering less than your medical bills, or ignoring how your injury affects your daily life, that’s not a fair offer. A good attorney can present evidence that shows the full impact of your injury—physical, emotional, and financial. We often use medical expert reports, lost wage documentation, and personal testimony to build a case for full value. Insurance companies take these cases more seriously when you’re represented by a lawyer who is ready to go to trial.

How Long Will It Take to Get a Fair Settlement?

Every case is different. Some claims settle within a few months. Others take a year or longer, especially if the insurance company refuses to negotiate in good faith. The timeline depends on the seriousness of your injury, how long you need medical treatment, and how willing State Farm is to settle. While it can be frustrating to wait, it’s important not to rush a settlement just to get it over with. Once you accept a settlement, you usually can’t go back and ask for more—even if you discover your injuries are worse than you thought.

How Anderson Franco Law Can Help

At Anderson Franco Law, we’ve handled many cases where insurance companies, including State Farm, tried to avoid paying what our clients deserved. We know the tactics they use, and we know how to fight back. Our approach is simple: we treat every client with care and respect, and we build each case like we’re preparing for trial. Whether you need help negotiating a settlement or filing a lawsuit, we’ll stand by your side every step of the way.

We work on a contingency basis, which means you don’t pay us unless we win your case. We also offer free consultations so you can get advice without any risk or pressure. Our team speaks English and Spanish, and we serve clients throughout San Francisco and all of California.