Car Accident Demand Letters: Tips and Examples

When a person is involved in a motor vehicle accident, their insurance company is expected to help them cover the claim. While some claims are processed quickly, many insurance payouts take longer due to investigation, negotiations, and medical documentation. There are also times when the other driver doesn’t have insurance, or their insurance company denies your claim. When this happens, you’ll have to pursue the at-fault driver directly.

The best way to do this is by suing the other driver, but lawsuits are a last resort after exhausting insurance negotiations. Before a lawsuit, your car accident lawyer should send a demand letter to the other party. This letter is required in most jurisdictions and can often resolve the dispute without litigation. It notifies the other driver that you intend to pursue legal action and provides them with an opportunity to resolve the matter out of court.

This article explains what a car accident demand letter is and how it can help resolve your car accident case. It also discusses what information you should include in your demand letter to increase your chances of a car accident settlement.

If you have suffered serious injuries in an accident and plan on filing a personal injury claim, contact a local car accident attorney. Consulting a personal injury attorney to draft and send a demand letter greatly improves your chances of a successful car accident settlement.

What Is the Purpose of a Demand Letter?

The goal of a demand letter is to motivate the other driver or their insurance provider to pay you the fair compensation you deserve. A demand letter is a formal document you send to the at-fault party’s insurance company outlining:

• Your car accident case
• Your insurance claim number
• A description of your injuries
• A summary of your financial losses
• The associated medical treatment and future medical care, such as physical therapy
• Any property damage
• The cost of car repairs
• Your damages, such as pain and suffering or emotional distress
• The dollar amount you are seeking as compensation

This letter initiates settlement negotiations by communicating your intent to pursue a fair settlement. A car accident demand letter should be factual, concise, and professionally presented. It should include evidence supporting your claim, such as:

• Medical records
• Police reports
• Witness statements
• Any other documents that detail the result of the accident and its impact on your life
• Your contact information, including your attorney’s phone number

Once the other driver’s insurance company receives the demand letter, they may reach out to your car accident lawyer. If not, your attorney will make a follow-up phone call to the insurance adjuster handling your claim.

Composition of a Settlement Demand Letter

There is specific information to include in a car accident demand letter. Let the at-fault driver and their insurance carrier know that you intend to take further legal action if they do not agree to settle the case out of court.

A demand letter in a car accident case often includes the following elements:

• Description of the accident: Provide a detailed account of the auto accident, including the date, location, and involved parties
• Statement of fault: Clearly state why the other driver is at fault and attach copies of the police report and witness statements, if available
• Injuries and medical treatment: Describe any serious injuries you suffered in the accident and the ensuing medical treatment
• Medical expenses: Provide a breakdown of your medical bills, including the cost of any future medical expenses
• Lost income: Document income lost due to missed work
• Non-economic damages: Explain the physical and emotional anguish you suffered because of the accident
• Property damage: Provide car repair or replacement estimates for damage suffered in the accident
• Demand for compensation: State the dollar amount you are seeking to cover your medical expenses, lost wages, property damage, and non-economic damages
• Reservation of rights: Include a statement that the demand does not constitute a waiver of your rights to seek further damages should the matter not settle
• Deadline for response: Include a date by which you expect a response from the other driver or the insurance adjuster

A sample demand letter or template can be helpful when you draft your letter, but make sure you customize it to meet the specific facts of your car accident case.

Sending the Demand Letter

Once you draft your demand letter, send it via certified mail to the at-fault driver’s insurance company. The insurance adjuster will respond with either an acceptance or a counteroffer, which can initiate settlement negotiations.

Insurance companies rarely pay the amount requested in your demand letter. The usual response is to contact your car accident attorney to either refute your claim or make a lowball offer. It may take several weeks or months for your personal injury lawyer to come to terms with the insurance adjuster.

Every personal injury case is unique, and the outcome depends on the specifics of your case, the at-fault party’s policy limits, and the nature and extent of your injuries. You should discuss your car accident case with an experienced car accident attorney to determine whether you have a valid claim for damages.

Contact a Local Personal Injury Attorney To Help Draft Your Demand Letter

If you’ve been in a car accident and the insurance company denied your claim, it could be time to sue the at-fault driver. The first step in this process is to send a demand letter to the other driver and their insurance carrier. While it may seem like a simple task, it’s best to have a seasoned car accident lawyer help you draft the letter.

Attorneys who specialize in personal injury cases are familiar with how insurance companies operate. They know how to negotiate a car accident settlement offer and can file your car accident lawsuit if you need help. They also know how to write an effective demand letter. Most attorneys offer a free case evaluation to determine the potential value of your claim and assess whether the insurance company is likely to settle out of court.