If you have suffered injuries or lost a loved one due to someone else’s legal fault, you can begin a personal injury or wrongful death claim by sending a demand letter to the at-fault party or their insurer. This letter presents the reasons for your claim and the amount you are seeking in financial compensation. An effective demand letter is essential if you hope to secure the compensation you deserve without going to court.
However, writing an effective demand letter is an art. It’s also only the start of further negotiations. Rather than try to write and send one yourself, work with an experienced personal injury attorney. They can listen to your story, write a demand letter on your behalf, and handle every aspect of your claim while you focus on healing.
What Details Should a Demand Letter Include?
A demand letter should paint a clear, concise picture of your claim and plainly outline your demands – including why you deserve compensation. Here are some key elements to include:
- The date, location, and brief description of the incident that caused your injuries
- A summary of your injuries, the medical treatment you needed, and any ongoing care you require as a result
- The amount of income you have lost if your injuries have kept you out of work
- A dollar amount for the pain, suffering, and other intangible harms you have experienced
- Any relevant evidence you have to support your claim, such as photos from the accident scene, police reports, and medical records
- The total amount of compensation you are demanding to resolve your claim
The letter should conclude with a statement that if the insurance company does not agree to pay the amount you are demanding, you are prepared to take further legal action.
How Long Does the Other Party Have to Respond to the Demand Letter?
It’s reasonable to give the insurance company at least 30 days to respond to your demand letter. However, you may need to set a shorter deadline if you are already approaching your state’s limitations period on personal injury claims. The statute of limitations in some states requires personal injury victims to begin legal action in as little as one year from the accident date. If you are nearing this deadline, consult a lawyer immediately to protect your right to seek compensation.
How Can They Respond to the Demand Letter?
After the insurance company reviews your demand letter, they will typically respond in one of the following ways:
- Accept your demand and agree to pay the amount you requested
- Make a counteroffer for a lower amount in an attempt to negotiate a settlement
- Reject your demand outright and provide reasons for the denial
If the insurance company makes a counteroffer, you can continue negotiating until you reach an agreement. You may need to file a personal injury lawsuit if they reject your demands.
What If the Other Party Ignores the Demand Letter?
If the insurance company does not respond by the deadline you set, you have a few options for how to proceed. You can:
- Send a follow-up letter restating your demand and providing a new deadline for a response
- Call the adjuster handling your claim to ask about the status of your demand
- Consult a personal injury lawyer about additional legal options
If the insurance company continues to ignore your communications or refuses to make a fair settlement offer, filing a personal injury lawsuit may be the best way to pursue the compensation you need. A personal injury attorney can guide you through this process and fight for your rights in court if necessary.
What Happens After the Other Party Responds to the Demand Letter?
The insurance company’s response to your demand letter will determine your next steps. If they agree to pay the amount you demanded, you can work with them to finalize the settlement and release them from further liability for your injuries.
If they make a counteroffer, you can accept it, reject it, or propose a different amount. This is when the settlement negotiation process begins. You can negotiate back and forth with the insurance company until you reach an agreement you’re comfortable with. Working with an experienced attorney can protect you from accepting an unfairly low settlement.
If the insurance company rejects your demand outright, you may need to file a personal injury lawsuit to continue pursuing fair compensation. Your attorney can draft and file the necessary paperwork to start this process and represent you at trial.
Are Demand Letters Considered a Legally Binding Document?
A demand letter is not a legally binding document. It is simply a formal communication that begins the conversation with the insurance company and lays out your intent to pursue compensation for your injuries and other losses.
However, if the insurance company accepts your demand or you accept their counteroffer, you will sign a legally binding settlement agreement. This document will clear the at-fault party of further liability for your injuries in exchange for the agreed-upon amount.
It is essential to wait to sign until you consult your attorney. This legal professional will have a better idea about what fair compensation entails and whether the offer adequately addresses your future needs.
Contact a Personal Injury Lawyer
A well-composed demand letter can be the key to securing compensation for medical bills, lost income, and the pain and suffering you have experienced due to another party’s actions. When you work with the skilled personal injury attorneys at The Wilhite Law Firm, you partner with a team that can give you the support and advocacy you need during this challenging time.
Since 1977, The Wilhite Law Firm has supported ordinary people in their personal injury claims and helped them get fair compensation for what they’ve suffered. We can write your demand letter, negotiate with the insurance company, and file a personal injury lawsuit if necessary. Call us today or contact us online for a free consultation, and let us use our decades of experience to help you.
