In the majority of car accident cases, parties often reach a settlement without resorting to court proceedings. This approach usually saves time and money and relieves the stress associated with lengthy legal battles. However, the process also involves presenting a strong and clear case to the insurance company. The first step in this process is sending a demand letter to the at-fault party’s insurance company.
What is a demand letter?
A demand letter outlines a dispute between you and another party. Its primary goal is to initiate negotiations and encourage a fair settlement, ideally outside of court. Your attorney typically writes this on your behalf, outlining:
- The details of the accident
- How the other driver is at fault, supported by evidence such as police reports or witness statements
- Medical bills and any projected future medical costs related to the injuries, as well as any income lost or property damaged due to the accident
- Request for compensation to cover these costs, as well as any pain and suffering experienced
- A deadline by which you expect a response
- Potential legal action if the recipient does not meet the demands
Your demand letter also serves as a record of your attempt to resolve the matter. This can be important if the issue eventually goes to court.
What happens next?
After sending a demand letter to the at-fault driver’s insurance company, you can generally expect one of several possible responses:
- They may accept your demand: If this happens, you can proceed with settling the claim and receiving your payment.
- They might propose a different settlement amount: This opens the door for negotiations. You and your attorney can decide whether to accept the counteroffer or continue negotiating for a higher amount.
- They may ask for additional documentation or clarification: They may have questions regarding the accident, your injuries or expenses. Providing the requested information promptly can help move the process forward.
- They may deny your claim: It is possibly due to a belief that their insured was not at fault. They may also claim there is insufficient evidence.
If negotiations are unsuccessful, you may consider filing a personal injury lawsuit. Your attorney can guide you through this process, evaluating the strength of your case and advising on the most appropriate course of action.