Understand your options when the insurance company makes a lowball injury settlement offer, and see a claimant's sample response letter. If you decide to reject the settlement offer, you'll need to do so in writing.The first step in rejecting a low settlement offer is to write a letter to the insurance company stating the rejection. I have reviewed your letter very carefully, including your settlement offer. Unfortunately, I cannot accept your offer for the reasons discussed below. A reasonable counteroffer is a key component of your rejection letter that you must include for the insurance adjustor to increase your settlement. What happens if you reject a settlement letter depends on why you have rejected it and where you are in the negotiating process. In this post, our experienced medical malpractice and personal injury lawyers at TLF cover what happens when you reject a settlement offer. It's essential to respond in writing, not verbally, if you receive a low settlement offer. An offer for a complete release from the claimant for the liability insurer's insureds.