If you have decided to take on the insurance company independently after an accident, without an attorney, you will be responsible for writing your own settlement demand letter. In many cases, accident victims do not need to hire an attorney due to the small amount of injury or damage, however, this does not mean that you shouldn’t recover a settlement that is less than what you deserve.
Once you have called an attorney, and they believe this is a case you are capable of handling on your own, be aware that you will have to write a demand letter, which will strongly influence your settlement.
What is a demand letter?
Before any form of negotiating, you must know what your total claim is worth. You can find this number by adding up your medical bills, loss of wages, prescriptions, and in many cases there are other factors such as pain and suffering. The demand letter will discuss all of these costs. Writing a strong demand letter will increase your settlement.
Make sure your letter covers the following questions:
- Has the accident caused you any long term or permanent injuries or disabilities?
- Have your injuries caused you to lose income or wages?
- How is the other driver responsible for the accident?
- Have your injuries affected your lifestyle? Such as hobbies, activities, household chores and tasks, etc.
- How much were your medical bills?
The end of the letter will include the amount you are asking for. However, it is advised to let the insurance adjuster make the first offer therefore you have a better idea about what settlement range they think is fair (don’t be fooled though – it’s usually never fair).
Insurance Company and the Demand Letter
The demand letter will be the basis for the insurance company’s negotiations with you. Along with your letter and requested amount, they will also look at the report of the accident, witness statements, pictures, medical records and more. Insurance adjusters are professional negotiators – not your friend.
After they have compiled all of the factors of the accident, they will calculate a settlement of what they believe your case is really worth. Generally, this is usually much lower than what it is truly worth.
Did you know?
Insurance adjustors are trained to settle for less than what your claim is actually worth. In fact, the insurance company’s main priority is to make money – it is a multi-billion dollar industry. The adjustors actually receive bonuses and incentives for settling a claim for a small amount.
Letter of Demand – What Not to Include
Remember, the point of your demand is to be persuasive, strong, and focused. If you believe there is information that is unnecessary or may weaken your claim, do not include it in your demand letter. Think of this letter like your final impression, why would you include something that would harm your case?
A tactic that the insurance adjuster may use is to try and say that you were partially or fully responsible for the accident. If you think you were somewhat responsible for the accident, do not admit this. This is why the accident report is important. Since you have decided to not hire an attorney, you are responsible for making your own arguments to enhance your case.
Demand Letter: Make or Break Your Settlement
If you want a high personal injury settlement, you must have an organized and convincing demand letter. If you sound knowledgeable on your case and show that you understand how the claims process works, the insurance adjuster will have less of an opportunity to cheat you out of your deserving settlement.
Keep in mind
If your injuries become more pertinent and extensive than you originally thought, you may want to reconsider hiring an attorney (for example: back pain was actually a herniated disc, which requires much more treatment and medical visits).
Settlement Demand Checklist:
- Present the facts clearly and concisely.
- An accurate and detailed statement regarding liability of the accident including evidence such as police reports, witness statements, pictures, etc).
- Injuries and expenses incurred as a result of the accident
- Knowledge throughout the letter – sound confidence and educated.
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