What is a demand letter in a personal injury case?

What is a demand letter?

A demand letter is a written request, sent to the at-fault party’s insurer, to pay your claim. It is the opening move in settlement negotiations. It gives the adjuster the facts and the proof, and it states the amount you are asking for.

What goes in a demand letter?

Four things: what happened, how you were hurt, what it cost, and what you are asking for.

• What happened. The date, the place and how the crash or fall occurred, and why the other person was at fault.
• Your injuries and treatment. A summary of your diagnosis, your care and your recovery, backed by medical records and bills.
• Your losses. An itemized list of medical bills, lost income, other out-of-pocket costs, and the toll the injury has taken on your daily life. See types of compensation.
• The amount you are asking for. A specific number, based on the full picture of what you have lost and may lose in the future.

When should a demand letter be sent?

Usually after your treatment is complete or your condition is stable. If you send it before you know the full extent of your injuries, you may ask for too little, and it is hard to reopen a claim after you settle. Your doctors can tell you when you are at a point where the long-term outlook is clear.

Timing also depends on deadlines. In Colorado you generally have 3 years from the date of a car, truck or motorcycle crash to file an injury lawsuit. Negotiating does not stop that clock, so the demand cannot wait forever.

What happens after the insurer gets it?

The insurer reviews it and usually responds with a lower offer. Adjusters may ask for more records, question your treatment or argue that you share the blame. A back-and-forth follows. Sometimes the insurer’s offer is fair, sometimes it is not, and you decide whether to accept. If you reject it, see what happens when you reject a settlement offer.

If talks stall, the next step may be a lawsuit. What litigation means explains the process.

What makes a demand letter strong?

• Clear and short. A reader should grasp the story fast.
• Backed by proof. Attach medical records, bills, pay records, photos and witness statements.
• Honest. Overstating a claim hurts your credibility with the adjuster.
• Firm and professional. Calm and factual works better than angry.

Does Colorado law say what a demand letter must contain?

No set form, as far as we know, but what it says matters a great deal. Because it shapes the negotiation, we treat it as one of the most important documents in a claim.

Should I write my own?

You can, but you should know the risks. Statements in the letter can be used against you later, and asking for the wrong amount can cost you. A lawyer can gather the proof, value the claim and make the request. See how a case works, and talk to us for a free case review.