Insurance Underpayment Demand Letter Generator

Generate a demand letter that formally disputes a lowball or underpaid settlement offer.

Letter type Appraisal applies to claims under your own policy, when you and the insurer agree the loss is covered but disagree on the amount. Most insurance departments also take complaints through an online form; the letter text works there too.

Your information

Your full name

Your phone and/or email

Your mailing address

Claim details

Insurance company's name and address

Claim number

Adjuster name (optional)

At-fault driver name

Date of accident

Location of accident

Briefly describe what happened and the damage (2-4 sentences)

Amount you are demanding (USD)

Response deadline (days)

Not legal, financial, or insurance advice. This tool gives a general, educational estimate only. Insurance laws, deadlines, and formulas vary by state, by policy, and by insurer, and they change over time. Verify anything important with your insurance policy, your state department of insurance, or a licensed attorney before relying on it. This generator produces a first draft based on what you enter. Review it carefully, attach your supporting documents, and consider legal review before sending a large or disputed claim.

Use this when your insurer has offered a settlement that does not reasonably cover your actual repair or replacement cost.

How to dispute an underpaid settlement

Quote the offer and claim number, then show line by line where it falls short: labor rate, parts, missed damage or a low car value.
Attach a second estimate or comparable cars for sale, not just your opinion of the value.
Ask for the insurer's estimate or valuation report in writing if you don't have it.

Example: how this letter could read

Your offer of $8,200 under claim [number] leaves out the rear bumper reinforcement and the blend panels on page 2 of the attached estimate, and uses a labor rate of $52 an hour where shops in my area charge $68. Correcting those items brings the amount owed to $9,640. Please send a revised payment, or a written explanation of each difference, within 21 days.

Made-up numbers; the generator fills in your own.

Already settled a claim? Share the first offer and what you finally got, anonymously, in 30 seconds. It helps us build the Lowball Index, which we publish once enough claims are in.

What to do next

Frequently asked questions

Should I cash a check for the lower amount?

Read anything that comes with the check. Cashing a check marked full and final settlement can end the claim in some states, so ask in writing whether it is a partial, undisputed payment first.

What if the insurer won't move on the number?

For your own policy, ask about the appraisal clause; for any insurer, you can file a complaint with your state department of insurance. Both are free.

How should I send my demand letter?

Send it by email and by certified mail with return receipt requested, so you have proof of delivery and a timestamp for your deadline.