How to respond to a lowball offer from an insurance company?

Asked by: Reginald Heathcote  |  Last update: August 3, 2025
Score: 4.8/5 (65 votes)

If you're faced with a low-ball insurance offer, there are several things you can do to fight for the money you deserve:
  1. Rejecting a settlement offer. Don't take the first offer. ...
  2. Gather evidence to support your claim. ...
  3. Write a detailed demand letter. ...
  4. Be ready to negotiate. ...
  5. Don't be afraid to file a lawsuit.

How do you respond to a settlement offer that is too low?

How Should I Respond to a Low Settlement Offer?
  1. Try to remain calm and examine the offer. After receiving a low settlement offer, the most important thing to do is to stay calm. ...
  2. Provide a formal, written response. ...
  3. Formulate your counteroffer. ...
  4. Settle after you've recovered.

What to do when the insurance offer is too low?

If the offer is too low, ask for the amount you think would be fair. Be prepared to explain and back up your position. If the adjuster stonewalls you, go over her head to the supervisor, or the claims manager. If that doesn't help, File a complaint with the State Department of Insurance.

How do I decline an insurance settlement offer?

How to Decline a Settlement Offer
  1. Craft a Written Response: Begin by drafting a clear, written response to the insurance company, explicitly stating your decision to decline the offer. ...
  2. Gather and Submit Documentation: To strengthen your rejection, provide updated documentation that supports your claim's value.

Do insurance adjusters try to lowball you?

Insurance adjusters are often given bonuses or other incentives based on how much money they save the company by getting claimants to accept low settlements. Making lowball offers is a key way insurers try to minimize payouts and protect their bottom line.

SETTLEMENT OFFER: You REJECT Offer and Want to Go to TRIAL! Can You Do That? NY Attorney Explains

27 related questions found

What should you not say to a claims adjuster?

Some key phrases to avoid saying to an insurance adjuster include: “I'm sorry.” “It was all/partly my fault.” “I did not see the other person/driver.”

Why is my settlement offer so low?

Your claim's value depends heavily on the evidence you provide. If you lack documentation, such as medical records, photos of the accident scene, witness statements, or proof of lost income, the insurance company may undervalue your claim.

How do you counter a lowball settlement offer?

If you're faced with a low-ball insurance offer, there are several things you can do to fight for the money you deserve:
  1. Rejecting a settlement offer. Don't take the first offer. ...
  2. Gather evidence to support your claim. ...
  3. Write a detailed demand letter. ...
  4. Be ready to negotiate. ...
  5. Don't be afraid to file a lawsuit.

What is the best way to politely reject an insurance offer?

If you decide to reject the settlement offer, you'll need to do so in writing. Provide a clear explanation of why you are rejecting the offer and include any supporting evidence that backs up your position. Your written response should be professional and concise; any inflammatory language could weaken your case.

What happens if you don't agree with insurance settlement?

File a Lawsuit

You can initiate a personal injury lawsuit if you and the insurance company can't agree on a settlement value. Filing a trial will bring the matter before a judge or jury who may decide to award the damages per your request.

How do I counter offer an insurance company?

To write a counteroffer to an insurance company, start by expressing appreciation for their initial offer. Then, clearly state your counteroffer amount, supporting it with detailed reasons and evidence, like increased medical expenses or overlooked damages.

What is a reasonable settlement figure?

A reasonable proposed settlement figure is one that takes into account the amount of awards juries in your area have made in recent, similar cases. Your initial settlement demand should be a number that's high enough to leave you room for negotiation.

What if insurance settlement is not enough?

Take Them to Court

You can file a lawsuit when the insurance settlement offer is too low. You can also file a lawsuit if attempts at discussion and negotiation fail. Starting an injury suit doesn't necessarily mean that negotiations are over.

How do you respond to a ridiculously low offer?

Being honest and direct is important when you receive a low ball offer and make it clear that you believe the offer to be too far below market value. Do not respond right away; let them know that you will get back to them. Consider what strategy might work best.

When not to accept a settlement offer?

You should not accept the first settlement offer without knowing key information that could affect your financial outcome. This is a significant decision, as it not only provides immediate payment but also closes the door to any future incident-related claims.

How do you decline an offer that is too low?

If you're sure that you want to decline, consider saying something like this:"I appreciate the offer and your time, but I can't accept this position at the salary you're offering. If the salary range is something that can be negotiated, please let me know."

Can an insurance company force you to settle?

If an insurance company offers to settle your accident or injury claim, you have the option to refuse. While insurance companies and adjusters may try to make it seem like an offer is the best and only one you'll get, that's rarely true.

How to respectfully decline a bid sample?

Thank you for taking the time to put together a quote for [Product/Service]. I appreciate the effort you and the team put into preparing this proposal. However, [give a clear reason], we have decided to decline the offer. I regret that we're unable to go forward with the proposal at this time.

Should I accept a home insurance settlement offer?

You do not have to accept the first, second, or third settlement offer—so long as the insurance company has not presented you with a fair amount. Even if your insurance adjuster tells you that they cannot raise the offer more, that is probably not true.

How do I reject an insurance settlement offer?

This letter should state:
  1. That you will not accept the initial settlement offer;
  2. The reasons why you feel you deserve a higher settlement amount;
  3. Each of their low-offer reasons, and your responses;
  4. The higher settlement amount that you will accept.

How do you politely decline a lowball offer?

Keep your message concise, clear, and respectful. Briefly explain that you have carefully considered the offer but have decided to pursue other opportunities that better align with your career goals and compensation expectations. Maintain a positive tone by expressing your willingness to stay connected.

Do insurance companies try to lowball?

They operate like any other business, where revenues must exceed costs to stay afloat. One of the ways they ensure profitability is by minimizing the amount they pay out in claims. By offering lowball settlements, insurance companies reduce their expenditures. The less they pay out, the more profit they retain.

What is an acceptable settlement offer?

A variety of factors can affect what a reasonable settlement offer might be, including the following: Whether the injured plaintiff is partially liable. The extent and severity of the victim's injuries. The past and future likely costs of treatment. Whether the plaintiff is likely to fully recover or has fully ...

What is a normal settlement amount?

The rough 'rule of thumb' that we generally use to determine the value of the average settlement agreement payout (in respect of compensation for termination of employment) is two to three months' gross salary (in addition to your notice pay, holiday pay etc., as outlined above).

How to deal with low ball insurance claims on a car?

5 Steps to Take After Receiving a Lowball Settlement Offer
  1. Get Help from an Attorney. ...
  2. Make Sure It Is Actually a Lowball Offer. ...
  3. Figure Out Why the Insurance Company Is Lowballing You. ...
  4. Collect the Evidence You Need to Prove Your Claim. ...
  5. Keep Negotiating and/or File a Lawsuit in Court.