Letter to Reject Car Insurer's Offer

What is a Letter to Reject a Car Insurer's Offer?

A Letter to Reject a Car Insurer's Offer is a formal letter sent by a policyholder to their insurer informing the insurer of the decision to decline or reject the compensatory offer made by the insurer. For example, if a person gets into a car accident that is not their fault and their insurer makes them an offer to cover the costs of the accident, they can use this letter to reject the car insurer's offer if they find the offer unacceptable.

 

Is it mandatory to have a Letter to Reject a Car Insurer's Offer?

No, strictly speaking, it is not mandatory to have a Letter to Reject a Car Insurer's Offer. However, it is highly recommended to have one, as it serves as a formal record of the policyholder's decision to reject the offer. Additionally, the letter helps the policyholder more clearly state their reason for rejecting the offer.

 

What are the prerequisites for a Letter to Reject a Car Insurer's Offer?

Before using a Letter to Reject a Car Insurer's Offer, the insurance company must have first presented the policyholder with an offer. The policyholder should have also carefully considered the offer before deciding to reject the offer.

 

Who can use a Letter to Reject a Car Insurer's Offer?

A Letter to Reject a Car Insurer's Offer can be used by any person or entity that is named as a policyholder on the car insurance. This means that it can be used by private individuals as well as businesses such as sole traders, general partnerships, LLPs, or a company. What matters is that the entity is named as the policyholder for the car insurance on the vehicle involved in the car accident.

 

What has to be done once a Letter to Reject a Car Insurer's Offer is ready?

Once the Letter to Reject a Car Insurer's Offer is ready, it should be signed by the policyholder who is sending the letter. Then, it should simply be posted or emailed to the car insurer and await their response. The policyholder should keep a copy of the letter for their records.

 

Which documents can be attached to a Letter to Reject a Car Insurer's Offer?

The following documents can be attached to a Letter to Reject a Car Insurer's Offer:

• Quotes from car repair shops that show the cost of repairs the vehicle needs;
• Reports from independent valuers showing the car's market value before the accident;
• Pictures of the extent of the damage to the vehicle;
• If applicable and available, police report of the incident; and
• Previous communication with the car insurer related to the rejection.

 

Is it necessary to witness a Letter to Reject a Car Insurer's Offer?

No, it is not necessary to have a witness for a Letter to Reject a Car Insurer's Offer. This is because it is a letter and not an agreement.

 

What happens if the car insurer does not respond to the Letter to Reject a Car Insurer's Offer?

If the car insurer does not respond within 14 days, the policyholder may choose to consider escalating the matter to the financial ombudsman or to a small claims court.

 

What must a Letter to Reject a Car Insurer's Offer contain?

A Letter to Reject a Car Insurer's Offer should contain:

• The details of the policyholder and the insurance;
• The details of the offer from the car insurer; and
• The reason for rejecting the car insurer's offer.

 

Which laws are applicable to a Letter to Reject a Car Insurer's Offer?

The relationship is subject to the principles of contract and insurance law.

 

Help from a lawyer

You can choose to consult a lawyer if you need help.

The lawyer can answer your questions or help you through the process. You will be offered this option when you complete the document.

 

How to modify the template?

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.