Free Samples: Counter Offer Letter for Insurance Settlement

When it comes to insurance claims, it’s not uncommon for an initial settlement offer to be less than what you were expecting or what you believe your claim is worth. 

In such cases, you have the option to write a counter offer letter to the insurance company. Here are the steps to follow when writing a counter offer letter for an insurance settlement.


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Review the initial offer

Carefully review the initial offer from the insurance company, including the details of the settlement, the reasoning behind the offer, and any supporting documentation. This will help you identify any errors, omissions, or other factors that may have led to the lower-than-expected offer.

Gather supporting evidence

Gather any additional evidence that supports your claim and helps you argue for a higher settlement offer. This may include medical bills, repair estimates, photos of damage, and any other relevant documentation. Make sure your evidence is organized and easy to follow.

Determine your desired settlement amount

Based on your review of the initial offer and your supporting evidence, determine the amount you believe is fair and reasonable for your claim. This should be a realistic and defensible amount that you can justify based on the evidence you’ve gathered.

Draft your counter offer letter

Begin your counter offer letter with a clear and concise statement of your position, including the amount you are seeking and the specific reasons why you believe it is justified. Be polite and professional, but firm in your position.

In the body of your letter, provide a detailed explanation of the evidence you’ve gathered and how it supports your position. Address any specific points made by the insurance company in their initial offer, and provide additional information or clarification as needed.

Finally, close your letter by thanking the insurance company for their time and attention, and expressing your hope for a fair and timely resolution to your claim.

Template 1: Personal Injury Counter Offer Letter

[Your Name]
[Your Address]
[City, State ZIP Code]
[Your Phone Number]
[Your Email]

[Date]

[Insurance Company Name]
[Address]
[City, State ZIP Code]

RE: Counter Offer for Personal Injury Claim
Claim Number: [Insert Claim Number]

Dear [Insurance Company Name],

Thank you for your recent letter dated [insert date] offering a settlement of [insert initial offer amount] for my personal injury claim. While I appreciate your offer, I must respectfully decline as it does not reflect the full extent of the damages I have suffered as a result of the accident.

I have reviewed the details of your offer and provided additional evidence to support my claim, including medical bills, lost wages, and other expenses related to my injuries. Based on this evidence, I am requesting a counter offer of [insert counter offer amount] to fully compensate me for the damages I have incurred.

I believe that this counter offer is fair and reasonable given the severity of my injuries and the impact they have had on my life. I hope that we can come to a mutually acceptable agreement to settle this claim quickly and without further delay.

Thank you for your attention to this matter.

Sincerely,
[Your Name]

Template 2: Property Damage Counter Offer Letter

[Your Name]
[Your Address]
[City, State ZIP Code]
[Your Phone Number]
[Your Email]

[Date]

[Insurance Company Name]
[Address]
[City, State ZIP Code]

RE: Counter Offer for Property Damage Claim
Claim Number: [Insert Claim Number]

Dear [Insurance Company Name],

Thank you for your recent letter dated [insert date] offering a settlement of [insert initial offer amount] for my property damage claim. While I appreciate your offer, I must respectfully decline as it does not fully cover the cost of repairing the damage to my property.

I have reviewed the details of your offer and provided additional evidence to support my claim, including repair estimates and photos of the damage. Based on this evidence, I am requesting a counter offer of [insert counter offer amount] to fully compensate me for the damages I have incurred.

I believe that this counter offer is fair and reasonable given the extent of the damage and the cost of repairs. I hope that we can come to a mutually acceptable agreement to settle this claim quickly and without further delay.

Thank you for your attention to this matter.

Sincerely,
[Your Name]

Template 3: Liability Counter Offer Letter

[Your Name]
[Your Address]
[City, State ZIP Code]
[Your Phone Number]
[Your Email]

[Date]

[Insurance Company Name]
[Address]
[City, State ZIP Code]

RE: Counter Offer for Liability Claim
Claim Number: [Insert Claim Number]

Dear [Insurance Company Name],

Thank you for your recent letter dated [insert date] offering a settlement of [insert initial offer amount] for my liability claim. While I appreciate your offer, I must respectfully decline as it does not fully compensate me for the damages I have suffered as a result of the accident.

I have reviewed the details of your offer and provided additional evidence to support my claim, including medical bills, lost wages, and other expenses related to the accident. Based on this evidence, I am requesting a counter offer of [insert counter offer amount] to fully compensate me for the damages I have incurred.

I believe that this counter offer is fair and reasonable given the severity of the accident and the impact it has had on my life. I hope that we can come to a mutually acceptable agreement to settle this claim quickly and without further delay.

Thank you for your attention to this matter.

Sincerely,
[Your Name]

Frequently Asked Questions (FAQs)

Q: Why should I write a counter offer letter for an insurance settlement?

Answer: Writing a counter offer letter for an insurance settlement allows you to request a higher amount of compensation for damages or injuries that you believe were not fully covered by the initial settlement offer. It gives you an opportunity to provide additional evidence and make a case for a more reasonable and fair settlement.

Q: What should I include in my counter offer letter?

Answer: Your counter offer letter should include a clear and concise statement of your position, including the amount you are seeking and the specific reasons why you believe it is justified. 

You should provide a detailed explanation of the evidence you’ve gathered and how it supports your position, and address any specific points made by the insurance company in their initial offer.

Q: How should I format my counter offer letter?

Answer: Your counter offer letter should be written in a professional and formal tone, with clear and concise language. It should be organized in a logical and easy-to-follow structure, with headings and subheadings where necessary. Be sure to proofread your letter carefully for errors or typos before sending it.

Q: Can I negotiate the settlement amount with the insurance company?

Answer: Yes, it is possible to negotiate the settlement amount with the insurance company. Writing a counter offer letter is one way to initiate the negotiation process and make a case for a higher settlement amount. It is important to be clear and concise in your communication and to provide supporting evidence to back up your position.

Q: How long does it typically take to receive a response to a counter offer letter?

Answer: The timeline for receiving a response to a counter offer letter can vary depending on the complexity of the case and the specific insurance company’s process. It is reasonable to expect a response within a few weeks to a month, but it could take longer in some cases. 

Be sure to follow up with the insurance company after a reasonable amount of time to ensure that they received your letter and are considering your counter offer.