What is in a Settlement Demand Letter to the Insurance Company?

paperwork with pen on topWhile there are personal injury cases that end up in court, most reach a resolution after the victim and the liable insurance company agree on a settlement. Sometimes victims deal with the insurance company themselves, but if you hire an attorney, he or she is going to send a settlement demand letter to the insurance company.

The settlement demand requests that the insurance company provide compensation for the victim’s damages. Below, we discuss these letters in greater detail, along with the benefits of having an experienced attorney negotiating for the compensation you need.

If you have questions about the legal process or are unsure if you have a case, give us a call today. We are ready to help you during this difficult time, and we do not charge upfront fees.

TSR Injury Law. Experienced attorneys ready to assist you. (612) TSR-TIME

What Does a Demand Letter Include?

While the details of each demand letter are different, they all have certain elements. For example, the demand letter will identify all the parties involved in the claim, including the insurance company, the victim, and the at-fault party. If an insurance adjuster has been assigned to the case, this person’s name and contact information will also be included.

These details need to be included so the other parties besides the victim are notified of the claim and can respond.

Other elements of a demand letter include:

Description of the Incident That Caused Your Injuries

This is one of the most important parts of the demand letter. This section explains what happened, how and why you got injured and why the other party should be held liable for the damages you suffered.

The description of the incident often includes medical records, the police report and statements from those who witnessed the crash. The demand letter may also include pictures of your injuries and pictures from the scene of the crash.

The information in this portion of the letter needs to be descriptive and factual.

Summary of Your Damages

The demand letter also lists the damages you suffered in the crash and explains how the crash has affected you.

Damages may include:

  • The cost of medical initial basic treatment
  • Cost of surgery or medical testing
  • Cost of all future medical care that will be needed
  • Emotional distress from being severely injured
  • Past and future pain and suffering documentation
  • Prescription medication past and future costs
  • Past and future lost wages
  • Loss of earning capacity
  • Property damage
  • Any other related damages you can document

Your attorney will include documentation to support your damages, including receipts and bills detailing your expenses. Non-economic damages will need to be explained in detail because there are no bills or receipts for these damages.

Your attorney may need you to keep a journal in which you explain the psychological damage caused by your injuries. For example, victims may explain the trauma of not being able to take part in the activities they once enjoyed. They may also describe how their injuries have damaged their relationship with their spouse. Other details in the journal may help to explain how the pain and limitations caused by the injury affect the victim each day.

Compensation Demand

The demand letter tells the insurance company how much compensation is being sought and what will happen if the demands are not met. The letters often say the victim intends to file a lawsuit if the insurance company refuses to meet the demand.

What Demand Letters Do Not Include

While there are many elements of a demand letter, there are certain things that should not be included in these documents. For example, you do not want the letter to make an unreasonable demand for compensation.

You also do not want the letter to have an extremely detailed description of the crash because it could be challenged. For example, you do not want to have statements that contradict the police report.

Other items that should not be included in your demand letter are any statements that could be perceived as admissions of fault.

Writing a detailed demand letter is complicated. However, this is just one reason why you should hire an experienced Bloomington car accident attorney to manage your claim. The attorneys at TSR Injury Law have obtained compensation from many insurance companies and we know how to draft an effective demand letter.

We are also experienced negotiators, so we know how to determine the compensation demand that is appropriate for a claim. You do not want to start too low or too high. Often, the insurance company responds to this with a counteroffer that is much lower than your original demand. Typically, insurers and the attorney for the victim go back and forth until they reach agreement on a settlement.

There is a strategy to negotiating for compensation and this is something that victims should leave up to an attorney with a proven track record.

TSR is Here to Assist Injured Victims. Call to Learn More

If you were injured by another’s negligence, you need an experienced law firm to help you seek justice and compensation. You should not decide about a settlement offer until you speak with an attorney.

TSR Injury Law has been taking on insurance companies for decades, and we have obtained hundreds of millions for our clients. We have the resources and experience to build a strong case. We also work on contingency, which means you do not pay us up front.

No upfront fees. No fees while working on your case. Call (612) TSR-TIME.