What a Demand Letter Is and What Goes in One
The letter that starts the negotiation
A demand letter is the written presentation of your claim to the insurance company. It explains what happened, why their insured is responsible, how you were hurt, what it has cost you, and what it will take to settle.
Until the demand goes out, an adjuster has a file and some guesses. After it goes out, they have your case, laid out with the evidence behind it. A strong demand is often what resolves a case without a lawsuit.
What goes in one
What happened. A clear account of the crash or incident, supported by the police report, photographs, witness statements, and any video.
Why their insured is responsible. The facts that show the other driver, property owner or company was at fault, in terms of liability.
Your injuries and treatment. Every diagnosis, every provider, and the course of care from the first visit to the last, with the medical records attached.
What it has cost you. These are the special damages: medical bills, lost wages, and other out-of-pocket losses, each documented.
What it has taken from you. These are the general damages: pain, limitations, sleep, work, the activities and time with family you lost. These are harder to put in a spreadsheet, and they are often the largest part of a case. They are told through your own words, your family’s, and your doctors’.
What comes next. If you will need more care, the cost of that future treatment and the opinions supporting it.
The demand. The amount it will take to settle, and why.
Why it usually waits
People are often surprised that the demand does not go out in the first few weeks. The reason is simple: until your treatment is finished, or your doctors can say what the future looks like, nobody knows what the case is worth.
Settle too early and you may find out later that you need surgery, with no way to reopen the claim. A release, once signed, is final. Waiting for the full picture protects you.
When the injuries are worth more than the insurance
Sometimes the harm is greater than the other side’s coverage. In those cases the demand may ask for the policy limits, the most the policy will pay, with a deadline to respond. These demands follow specific rules and are written carefully, because how they are written can matter a great deal later.
What happens after it is sent
The adjuster reviews the demand and responds, often with an offer well below it. That is normal, and it is the start of the conversation, not the end of it. There may be several rounds of offers and counteroffers. Read Should I accept the first offer? for why the first number is rarely the right one.
If the insurer will not pay a fair amount, the next step is usually a lawsuit.
Talk to Boyd
If you are dealing with an insurer on your own and are not sure what your claim is worth, call before you send anything. The consultation is free, and Boyd takes the call himself: (714) 656-2400.