What Is a Demand Letter Used For?
Insurance companies have embraced technology to enhance their policyholders’ experiences. Every major carrier allows you to conduct a lot of business online, such as making payments, expanding policies, and adding drivers. They also provide portals where policyholders can begin the claims process. However, filing a claim online where there could be a dispute can be problematic.
For instance, suppose there is a dispute over who caused the accident or the amount of damages you’re seeking. In those scenarios, filing online could get that claim “lost.” Instead, you should consider retaining the services of an experienced personal injury attorney, like the team at Schweickert Ganassin Krzak Rundio, LLP. We have delivered hundreds of millions in settlements for our clients in various personal injury claims. One of the first steps we’ll recommend is to send a demand letter.
The goal of a demand letter is to inform the applicable insurance carrier about the accident and what you’re seeking. The letter begins with the details of the sequence of events that led to the accident, including its impact and aftermath.
The following are some of the elements that need to be included in a demand letter:
Facts of the Accident
In order for an insurance company to pay damages, they need to agree that their policyholder caused the accident. That starts by presenting your version of the accident as the opening of the demand letter. Your attorney will work out the specific language that will lay out the details of the accident and how your initial evidence supports your version of the events.
That evidence can include findings from the police crash report and any witness statements. The goal of this section is to firmly establish who should be held accountable for the accident.
Detail Your Injuries
If you have been injured due to another driver’s negligence, you need to provide the details of your injuries and the prescribed treatment. You can include the emergency room report, your doctor’s follow-up exam, and any other relevant information that is tied to the injuries caused by the accident. You want to be sure these details utilize the medical terms related to your injuries. You’ll also want to list all the hospitals, urgent care, and other medical facilities you visited for treatment.
As your attorney will inform you, these injury details don’t have to wait until you’re fully recovered. The demand letter can be sent out immediately.
Present Your Medical Expenses
Your demand letter must include what happened to you and what it has cost you in financial losses. You’ll want to begin with a summary of your current and future medical expenses. These will be easy to support with invoices and bills. If you’ve been prescribed physical therapy or ongoing surgical procedures, those expenses should be included as well.
Document Your Lost Wages
When a car accident injury requires you to recuperate at home, you are going to miss out on work. You should not be expected to use your sick days or time off to cover those lost wages. That should be part of what you’re asking for in your demand letter. If your doctor has also declared that your injuries will prevent you from returning to the same job or any work, you are entitled to ask for some measure of future earning potential.
Property Damage
Your demand letter also has to include the damage to your car. That can either mean estimates for the repairs or the current market value if the car needs to be replaced.
Other Car Accident-Related Losses
There is a final category of losses to include in your demand letter. Those will be the items that can be quantified with a receipt. It is a number that is reflective of how the accident has impacted your life. Did it cause you chronic pain that you’re still experiencing? Have you missed out on family functions, or are you participating in hobbies and sporting activities? Has it caused you mental distress?
You and your attorney need to calculate and present these items in your demand letter. This is what you consider to be a fair amount to compensate you for all your losses.
The Demand Letter Response
Once your attorney sends the demand letter, there will be a version of one of the following responses:
Denial
This is the insurance company’s default position. They would like nothing more than to deny a claim and have that be the end of the situation. They could justify this denial by claiming their policyholder is not responsible for the accident. There might also be an issue with the limits of what the policy is obligated to pay out. In other words, your demands might exceed the insurance carrier’s maximum benefit amount.
Offer
If the insurance carrier accepts the premise that their policyholder is liable, they might make an offer for settlement. This could be a number that is less than you’re asking for but still represents a significant amount. It could also be a lowball offer that doesn’t come close to covering your losses.
When an insurance company makes an offer, they are recognized for a certain amount of liability. This could be the beginning of back-and-forth negotiations where your attorney will take the lead. You might just land on a number that is somewhere between your demand and their first offer.
Request for Evidence
Before the insurance company presents a response, they will want to conduct their own investigation. That means requesting the evidence that you’ve presented in their demand letter they might not have access to. They might also request that you take an independent medical examination. You don’t have to turn over anything without discussing it with your attorney.
Acceptance
Your demand letter could present such a compelling case that the insurance company accepts your numbers and is willing to cut the check. Your first instinct might be to question their sincerity and whether they know something you don’t. However, if they are willing to pay what you ask for, you can agree to the settlement and get paid.
Once you do agree to the settlement, your claim will be closed. That means you can’t go back and ask for more money later on.
That is why you want the right legal support Schweickert Ganassin Krzak Rundio, LLP provides. We pride ourselves on being a strong advocate for our clients. We don’t want to see insurance companies dragging out a demand letter response when our clients need those funds to get their lives back on track.
If you have questions about drafting a demand letter, let’s talk. Call to set up a consultation today.
