• Jun 23, 2025
• By Brian

How to Dispute a Car Insurance Settlement Offer Receiving a low or unfair settlement offer from your car insurance company can be frustrating, especially when you believe you deserve more compensation for damages, injuries, or other losses

Fortunately, you have the right to dispute the offer and negotiate for a better outcome. Here’s a step-by-step guide on how to effectively challenge a car insurance settlement.

1. Review the Settlement Offer Carefully

Before disputing, thoroughly examine the offer letter and supporting documents. Insurance companies should provide a breakdown of how they calculated the settlement. Look for:

Underestimated repair costs:

– Compare their estimate with quotes from auto repair shops.

Ignored injuries:

– Ensure medical expenses and pain/suffering are fairly considered.

Depreciation disputes:

– If they undervalue your car, check comparable vehicle prices.

2. Gather Supporting Evidence

Strengthen your dispute with documentation, such as:

Repair estimates:

from licensed auto shops.

Medical bills and records:

if injuries are involved.

Photos/videos:

of the accident scene, vehicle damage, and injuries.

Witness statements:

to support your claim.

Comparable vehicle listings:

(if disputing total loss value).

3. Write a Formal Dispute Letter

A well-structured dispute letter increases your chances of a favorable response. Include:

Your policy and claim number:

A clear explanation:

of why the offer is insufficient

Supporting evidence:

(attach copies, not originals)

A request for a revised settlement:

with a reasonable amount

4. Negotiate with the Adjuster

If the insurer denies your initial dispute, request a conversation with the claims adjuster. Be:

Polite but firm:

– Clearly explain your position.

Persistent:

– Follow up if they delay a response.

Open to compromise:

– Sometimes, a partial increase is better than prolonged disputes.

5. Consider Mediation or Appraisal

If negotiations stall, alternative dispute resolution methods may help:

Mediation:

– A neutral third party facilitates a settlement.

Appraisal clause:

– If your policy allows, hire an independent appraiser to assess damages.

6. Consult a Lawyer (If Necessary)

For large claims or denied disputes, a car accident attorney can:

Evaluate your case:

for undervaluation or bad faith.

Negotiate on your behalf:

with stronger legal leverage.

File a lawsuit:

if the insurer refuses a fair settlement.

Final Thoughts

Disputing a car insurance settlement requires patience, documentation, and persistence. By following these steps, you can improve your chances of securing a fair payout. If the insurer continues to act in bad faith, legal action may be your best recourse.

Would you like assistance drafting a dispute letter template? Let me know how I can help further!