Overview
A demand letter is the document that formally opens settlement negotiations in a personal injury case. Your lawyer sends it to the at-fault party's insurance company laying out what happened, the injuries and losses you suffered, why their insured is responsible, and a specific dollar amount you're demanding to settle. It's backed by evidence — medical records, bills, proof of lost wages — and it sets the tone for everything that follows. Understanding what a demand letter does, and what comes next, helps you know where your case stands.
Frequently Asked Questions
What is a demand letter in a personal injury case?
A demand letter is a formal written request your attorney sends to the at-fault party's insurance company demanding compensation for your injuries and losses. It explains how the accident happened, establishes why their insured is liable, itemizes your medical bills, lost wages, and other damages, and states a specific dollar figure you're willing to accept to settle. It's essentially the opening move in settlement negotiations, and a well-documented one signals that you're prepared to pursue the claim fully.
What does a demand letter include?
A strong demand letter includes a clear account of how the accident occurred, an explanation of the other party's fault, a summary of your injuries supported by medical records, an itemized list of your economic losses like medical bills and lost income, a description of your pain and suffering, and a specific settlement demand. Supporting documentation is usually attached so the adjuster can verify every number. The more thorough and evidence-backed it is, the harder it is for the insurer to lowball you.
What happens after my lawyer sends the demand letter?
Once the insurance company receives the demand letter, an adjuster reviews it and typically responds within a few weeks — often with a counteroffer lower than your demand. This kicks off a back-and-forth negotiation where your lawyer argues for a higher figure using the evidence in the letter. Most cases settle during this phase. If the insurer refuses to make a fair offer, the next step may be filing a lawsuit, though many cases still settle even after litigation begins.
How long after a demand letter does a settlement usually take?
There's no fixed timeline, but insurers commonly respond to a demand letter within two to six weeks, and negotiations can then take anywhere from a few weeks to several months depending on how far apart the two sides are and how complex the case is. Cases with clear liability and well-documented damages tend to move faster. Your attorney can give you a realistic estimate once they see how the insurer responds.
Should I write the demand letter myself?
You can, but it's usually a mistake to send one without legal help. Insurers scrutinize demand letters for weak spots, and undervaluing your claim or omitting future medical costs can permanently cap what you recover. An experienced attorney knows how to document losses the insurance company might otherwise ignore and how to frame the demand to maximize leverage. A free case review lets a lawyer look at your situation before anything is sent.
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Get A Free Case Review →This page is for general informational purposes only and does not constitute legal advice. Laws vary by state and every case is different. Contact us to discuss the specific facts of your situation.
