What is a demand letter in a personal injury claim?
What a demand letter does
Most injury claims settle without a trial. The demand letter is usually the formal start of settlement talks. It puts your side of the story in one place and gives the insurance adjuster a number to respond to.
A clear, well-documented letter makes it harder for an insurer to say it didn't have enough information to make a fair offer.
What's usually in it
- The facts: date, place and how the accident happened
- Fault: why the other party is responsible, such as a police report, photos or witness statements
- Injuries and treatment: diagnoses, procedures, therapy and any future care your doctors expect
- Money losses: medical bills, lost wages and other out-of-pocket costs
- Effect on your life: pain, limits on work, family life and activities
- The demand: the amount you'll accept to settle, and often a date to respond by
Copies of records and bills are attached. If Medicare, Medicaid or a health plan paid your bills, the letter may also need to account for their repayment claims. See how pain and suffering is calculated.
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Many lawyers wait until you reach maximum medical improvement. That's the point where your condition has leveled off and your doctors can predict future care. Settling too early can mean leaving out costs you don't know about yet, and a settlement is usually final.
The catch is timing. Every state has a statute of limitations for filing an injury lawsuit, and it keeps running while you treat and negotiate. If talks drag on, your lawyer may file suit to protect your claim and keep negotiating after.
How the insurer responds
The adjuster reviews your letter and records and then usually does one of three things:
- Accepts the demand (less common)
- Makes a lower counteroffer
- Denies the claim or asks for more information
Back-and-forth offers are normal. Adjusters often point to gaps in treatment, earlier injuries or shared fault to push the number down. Check whether an offer is fair before you accept anything.
Time-limited demands and state rules
Some demand letters give the insurer a firm deadline to accept, often an offer to settle within the policy limits. In some states, an insurer that unreasonably turns down a fair policy-limits offer can face added legal exposure later.
Because of this, several states, including Georgia and California, have laws that set specific rules for these time-limited demands, such as what must be included and how long the insurer gets to respond. A letter that misses a required detail may lose its intended effect, so the rules in your state matter. A local injury lawyer can write and time a demand under your state's rules, and injurylawyers.si can list injury law firms near your ZIP code.
Common questions
Can I write a demand letter without a lawyer?
Yes, anyone can send one. But injury lawyers know what records to include, how to value future care and how to follow any state rules on time-limited demands.
How long does an insurer take to answer a demand letter?
It varies by insurer, state and how complex the claim is. Some state laws set response times for certain claims, and many letters set their own deadline.
Does sending a demand letter stop the statute of limitations?
Generally, no. The deadline to file a lawsuit keeps running during negotiations unless a specific exception applies in your state.
Should I ask for more than I expect to get?
Most demands start above the final settlement because insurers almost always counter. The number should still be backed by your records and losses.
What if the insurer ignores my demand?
Follow up in writing and keep copies. If there's no fair response, filing a lawsuit before your deadline is often the next step.