What a Demand Letter Is
A demand letter is a formal written document sent by your attorney (or by you, if unrepresented) to the at-fault party's insurance company. It officially opens settlement negotiations by documenting your damages and stating the amount you\'re demanding to resolve the claim without going to court.
The demand letter is typically sent after you've completed medical treatment or reached maximum medical improvement, because the full picture of your damages — past and future medical costs, lost wages, pain and suffering — isn\'t known until treatment is complete.
What a Strong Demand Letter Includes
- Liability section: Describes the accident, establishes that the other party was at fault, and cites relevant law, police reports, or witness statements
- Injury summary: Documents every injury, the treatment received, the treating physicians, and the prognosis
- Economic damages: Itemized list of medical bills, lost wages, future medical costs if ongoing treatment is needed, and other out-of-pocket expenses
- Non-economic damages: Detailed description of how injuries affected quality of life, relationships, ability to participate in activities, and the pain endured
- Demand amount: The total amount requested for full and final settlement
- Supporting documents: Medical records, bills, accident report, photographs, wage documentation — all attached as exhibits
After the Letter Is Sent
The insurance company's adjuster reviews the demand and the supporting documents. Their response is typically a lower counter-offer — this is expected. The demand figure is set with negotiation room built in. Both sides work toward a mutually acceptable number.
If negotiations fail — the insurer makes unreasonably low offers or refuses to acknowledge the full extent of your damages — the next step is filing a personal injury lawsuit. The existence of the demand letter and the settlement correspondence becomes part of the record.
Frequently Asked Questions
What is included in a demand letter?
Description of the accident and liability, injury and treatment summary, all economic damages with documentation, non-economic damages description, and the demand amount.
How long does the insurance company have to respond?
No universal deadline, but most respond in 30-45 days. Unreasonable delays may constitute bad faith claims handling under state law.
What happens after a demand letter?
The insurer responds with a counter-offer. Negotiation follows. If it fails, a lawsuit may be filed.
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InjuryClaimSource is an educational resource. We are not a law firm and do not provide legal advice. Demand letter strategy, content, and timing vary by case facts and jurisdiction. Consult a qualified personal injury attorney.