What is a Demand Letter in a Car Accident Claim?

After months of medical treatments, physical therapy, and recovery following your car accident, you have finally reached a point of stability. You have gathered all your medical bills and documented your time off from work. Now, the question is: How do you formally begin the process of getting a settlement from the insurance company? You don’t just send them a pile of bills and ask for money.

The official start of the negotiation process begins with a crucial document known as a demand letter.

A demand letter is a comprehensive, professionally written document that your attorney sends to the at-fault driver’s insurance adjuster. It is the cornerstone of your case. This letter lays out the complete story of your claim in a clear, logical, and persuasive manner. It details the facts of the accident, establishes the other driver’s liability, meticulously documents all of your damages, and makes a formal demand for a specific amount of money to settle your claim. A well-crafted demand letter is what transforms your collection of evidence into a powerful negotiating tool.

Useful Information for You: In a Nutshell

• It’s the Official Start of Negotiations: A demand letter is a formal document that officially kicks off the settlement negotiation process with the insurance company.
• It is Sent AFTER Your Treatment is Complete: The letter can only be written after you have finished medical treatment and reached “Maximum Medical Improvement” (MMI), so that all your damages can be calculated.
• It Lays Out Your Entire Case: The letter details the facts of the accident, provides a legal argument for why the other driver is at fault, and itemizes all of your economic and non-economic damages.
• It Demands a Specific Settlement Amount: The letter concludes with a demand for a specific dollar amount to resolve the claim. This is the opening number in the negotiation.
• It is Drafted by Your Attorney: While you provide the information, the demand letter should be drafted by an experienced personal injury attorney to ensure it is as persuasive and effective as possible.

The Key Components of a Strong Demand Letter

A demand letter is a carefully structured legal argument. It typically includes the following sections:

1. A Statement of Facts

This section provides a clear, concise summary of how the car accident happened. It will state the date, time, and location of the crash and describe the sequence of events that led to the collision.

2. A Summary of Liability

Here, the letter explains why the other driver (their insured) is legally responsible for the accident. It will reference the evidence, such as the police report, witness statements, and relevant Washington State traffic laws (RCWs), to show that the other driver was negligent.

3. An Overview of Your Injuries and Medical Treatment

This section details the physical harm you suffered. It will list every diagnosis, from whiplash and concussions to fractures, and describe the full course of your medical treatment. It will mention every hospital visit, doctor’s appointment, physical therapy session, and chiropractic adjustment.

4. A Calculation of Your Economic Damages

This is the math portion, where every calculable financial loss is itemized. This includes:

• Total Medical Bills: The full, itemized cost of all medical care you received.
• Total Lost Wages: A calculation of all the income you lost from being unable to work.
• Other Out-of-Pocket Expenses: Costs for prescriptions, transportation to medical appointments, etc.

5. A Discussion of Your Non-Economic Damages (Pain and Suffering)

This is the most nuanced part of the letter. It tells the human story of your suffering. It will describe your physical pain, the emotional distress and anxiety the accident caused, and the impact the injuries have had on your daily life and ability to enjoy your hobbies.

6. The Settlement Demand

The letter concludes with a demand for a specific, total settlement amount. This number is strategically calculated by your attorney. It is higher than the absolute minimum you would accept, as it is the opening figure in what will be a back-and-forth negotiation.

The demand letter is the most critical document in the pre-litigation phase of your case. Its quality, thoroughness, and professionalism set the tone for the entire negotiation. If you’ve been injured in an accident in the Tacoma area, search the Car Accident Lawyer Directory Tacoma. Compare profiles and find a trusted local attorney who has the expertise to draft a powerful demand letter that commands the insurance company’s respect and maximizes your chances of a fair settlement.

References

• Washington State Bar Association (WSBA) – The Attorney-Client Relationship:A consumer guide from the WSBA that explains the legal process, including the negotiation phase, which is initiated by the demand letter.

  https://www.wsba.org/docs/default-source/news-public/publications/pamphlets/the-attorney-client-relationship-2015.pdf

• NOLO – “Creating a Great Personal Injury Demand Letter”:A reputable legal resource for consumers that provides a detailed breakdown of the components and strategy behind an effective demand letter.

  https://www.nolo.com/legal-encyclopedia/creating-great-personal-injury-demand-letter.html