What Is a Demand Letter in a Personal Injury Claim?
A demand letter formally requests compensation from an insurance company or responsible party in a personal injury claim. Here is what it contains and what happens after sending one.
Informational purposes only. This article is for general informational purposes only and is not legal advice. Laws vary by jurisdiction. If you need advice about your specific situation, consider speaking with a licensed attorney.
## Short Answer
A demand letter is a formal written document sent to an insurance company or at-fault party requesting a specific amount of compensation for injuries, medical bills, lost wages, and other damages.
What a Demand Letter Contains
A well-prepared demand letter typically includes a description of the accident and how it occurred, an explanation of how the other party was at fault, a description of your injuries and medical treatment, documentation of medical bills and other economic losses, a description of your pain and suffering, and a specific dollar amount demanded to settle the claim.
Supporting documentation is attached: medical records, bills, police reports, photographs, and proof of lost wages.
Why Demand Letters Matter
The demand letter formally opens settlement negotiations and establishes a written record of your claim and damages. It gives the insurance company the information needed to evaluate the claim and make an offer. The specific amount you demand sets the starting point for negotiations.
What Happens After Sending a Demand Letter
The insurance company reviews the letter and supporting documentation. They may accept, counter, or deny. Most insurance companies respond within 30 to 60 days. The response usually begins a negotiation process.
If the insurer denies the claim or makes an unreasonably low offer, the next step may be filing a lawsuit before the statute of limitations expires.
Should You Write Your Own Demand Letter?
For minor claims with clear liability and small damages, some people write their own demand letters. For serious injuries, disputed liability, or significant damages, an attorney can draft a more effective demand letter that anticipates insurance company objections and presents your claim in the strongest possible terms.
Common Mistakes
Demanding too little can result in accepting less than your claim is worth. Demanding an unrealistically high amount can undermine credibility. Sending the letter before your treatment is complete may leave out future medical costs.
---
*This article is for general informational purposes only and is not legal advice. Consult a licensed attorney for advice specific to your situation.*
Informational purposes only. This article is for general informational purposes only and is not legal advice. Laws vary by jurisdiction. If you need advice about your specific situation, consider speaking with a licensed attorney.