What Happens After Your Lawyer Sends a Demand Letter?

The immediate moments after a car accident can best be described as chaotic.

You’re checking yourself and any passengers for injuries and calling 911. You’re inspecting your car for damages and wondering if you can drive away or need a tow. You’re also checking on the other motorists involved in the accident.

When the police show up, you have to provide a statement of your version of what happened. There is a lot going on that has to be unpacked.

In the days that follow, you could be dealing with medical treatment, car mechanics, and calling in sick to work. This is the phase of the accident recovery where bills begin to mount up. That alone can trigger more stress.

One of the first things your lawyer will do after taking on a car accident claim is to prepare a demand letter for your case. It’s helpful to understand what goes into this document.

Why You Need a Demand Letter

Most insurance companies require their policyholders to report any personal injury accident.

That’s not the same as filing a claim, but simply alerting them to the incident. A demand letter informs the insurance company that you intend to seek compensation.

Here’s what will be included in your demand letter:

Your Version of What Happened

The demand letter will begin with an overview of your version of what happened. This will include how negligence contributed to the accident. You’ll also mention why you should receive compensation.

Settlement Deadlines

Your attorney will add specific dates for an anticipated response. If you don’t lock down what you anticipate, the insurance carrier will be in no rush to respond.

Evidence for Your Damages

In order to get what you’re asking for, you have to present evidence of your injuries.

These can consist of medical records and photos of the injuries.

Amount of Damages

You’ll need to provide a list of the damages that includes a detailed description of the following:

• Medical bills for exams – future and current
• Emergency room and hospitalization charges
• Surgery (if applicable)
• Medical supplies
• Prescription
• Physical therapy
• Lost wages
• Pain and suffering
• Mental anguish

Release Guarantee

Your demand letter needs to include a release guarantee. This informs the insurance company that if you agree to their terms, you will not return to them later asking for more money.

You’re releasing them from any further claims.

Policy Limitations

If your damages exceed the insurance policy limits, that should also be included in the demand letter. The insurance carrier is only obligated to pay up to the threshold of the policy.

In other words, if the liability amount is $50,000, that is all they will pay, regardless of whether your injuries cost twice that. In order for you to make up for the loss, you can sue the at-fault party directly.

If the insurance company acknowledges that your damages exceed the policy, that can establish what you’re owed and make it easier to recover that, provided the at-fault party has the assets.

What Happens After Your Lawyer Sends the Demand Letter?

When you agree to the contents of the demand letter, your attorney will send it out mostly like by certified mail.

They might also include a duplicate email. The insurance company is obligated to acknowledge receipt of the letter. They will then respond with one of the three following responses:

Demand Accepted

If the insurance company agrees with the evidence and the amount you requested, you could be paid in a few days. You will have to sign the release, and your attorney will deduct their agreed-upon fees.

Negotiations and Counteroffer

The insurance company might agree to the general scope of the accident but not to what you’re asking for.

Typically, the disputed amount will be focused on your noneconomic damages, such as your pain and suffering and diminishment of quality of life. You could propose a counteroffer and land on an amount that is less than what you asked for but more than what they countered with.

Claim Denied

The insurance company can also outright deny the claim, but that isn’t the end of the process. If you receive a denial, you and your car accident attorney can discuss the option of filing a civil complaint and taking the carrier to court.

Getting the Right Legal Counsel

It is vital that you get the right legal counsel throughout the demand letter process.

The attorneys at Belsky & Horowitz, LLC, are standing by to hear your story. If we agree to take up the case, we will keep you fully informed every step of the way and be honest about the challenges and potential outcomes.

We bring decades of negotiating and litigation experience into every claim. Call to set up a free consultation to share your story.