The first step in rejecting a low settlement offer is to write a letter to the insurance company stating the rejection. Always reject a settlement offer in writing.Type a letter to your contact at the insurance company listing the reasons you think that their offer is too low. Understand your options when the insurance company makes a lowball injury settlement offer, and see a claimant's sample response letter. Use this letter to help you negotiate a full and final settlement offer with a creditor. If you disagree with the offer, you can decline it. However, rejecting a settlement offer isn't as simple as saying, "Sorry, I won't accept it." Victims who want to respond to a low settlement demand offer must use factual information, persuasive arguments, and a professional tone.