What happens if you reject a settlement letter depends on why you have rejected it and where you are in the negotiating process. Understand your options when the insurance company makes a lowball injury settlement offer, and see a claimant's sample response letter.5.1 Is this the right court to decide my dispute? It is in your best interest to document your counteroffer in writing and send it to the insurance claims adjuster. 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." Find demand letters for a variety of personal injury cases and negotiate a fair out-of-court settlement after an accident. Provide a clear explanation of why you are rejecting the offer and include any supporting evidence that backs up your position. The company has three choices: Decline your settlement offer without making a counteroffer. A bad driver that injures you in an accident owes you money, but how do you get it?