How to Write a Demand Letter for an Auto Accident

If you've been injured in an auto accident through the fault of a negligent party, you may need to write a demand letter asking for compensation for your injuries. Many people who have suffered personal injury contact an attorney to assist them in this process, but an attorney often charges up to one-third of the total settlement amount as a contingency fee. You can write your own demand letter using the simple steps outlined below. (IMPORTANT DISCLAIMER: this article is for informational purposes only and should not be construed as legal advice.)

Instructions

1. Contact the negligent party's insurance company right away to initiate a claim. This is especially important if there is no police report or other official documentation of the incident. Your claim with the insurance company is an important way of documenting the claim and letting the insurance company know that you are serious about seeking compensation for your injuries.

2. Get necessary medical treatment. If there is clear liability on the part of the negligent party, their insurer will likely pay for your medical care up front. If the opposing party's insurer refuses to pay, you may also have what is called PIP coverage through your own auto insurance policy. PIP stands for "Personal Injury Protection" and is not available in all states. If neither the opposing party's insurer nor yours will pay for your medical treatment, your medical insurance may kick in or you may have to pay out of pocket. If medical insurance or PIP pays your medical bills, they may have a subrogated interest in any settlement, which simply means they must be reimbursed out of an eventual settlement with the negligent party.

3. Be aware of the statute of limitations. The statute of limitations (SOL) sets the maximum amount of time that you can wait before filing a lawsuit against the negligent party. If you don't reach settlement before the date that the SOL runs, you will need to file a lawsuit to compel the insurance company to pay your claim. In my state, the SOL runs three years from the date of the injury. The SOL may vary from state to state, so you should be sure to check the laws of the state you live in.

4. Keep track of all expenses and financial losses you incur as a result of the accident. This includes damage to your vehicle, medical expenses, time lost from work, or any expense or loss that you would not have incurred but for the accident. When you present the demand, you will need to be able to present an itemized list of these specific damages. Once you have finished treatment for your injuries and have documentation of all your specific damages, you will be ready to write a demand letter.

5. Keep an ongoing record of your recovery process. Make note of your level of pain, where in your body you experience pain, how your injuries limit your activities and ability to do things you normally do. Do get appropriate medical treatment and do document your legitimate complaints, but don't drag out treatment for its own sake. Be honest about the extent of your injuries and seek damages appropriate to your injuries. You will need to come up with a dollar figure that you propose in settlement of your general damages (in addition to your specific damages).

6. When you are done with treatment, obtain copies of your treatment-related medical records. Use the records, all of the documentation of specific damages, and your notes regarding your injuries to write a letter to the insurance company explaining the extent of your damages and asking for compensation. You can structure your letter by including the following sections: BACKGROUND-include your prior medical conditions, if any, and the activities you were able to perform before the accident; FACTS OF THE ACCIDENT-include the details of the accident, including date and location, and whether a determination of fault was made at the time of the accident; INJURIES AND DAMAGES-include a detailed description of your physical and emotional distress and the course and length of your recovery, SETTLEMENT PROPOSAL-assign specific dollar amounts to any insurer's subrogated interest, each of your specific damages, and a figure for general damages. Send documentation of your expenses and wage loss along with the letter. It is a good idea to write something like "FOR SETTLEMENT PURPOSES ONLY" at the top of the letter, so that nothing in the letter can be construed as an admission against interest in case you later file a lawsuit.

7. Be realistic, and be prepared to negotiate. Remember that you are saving money by not using an attorney to collect a settlement for you. Play fair, and expect the insurance company to do the same.

Tips & Warnings

• You may want to pay for a one-time consultation with an attorney to get an overview of personal injury law in your state. You can also collaborate with an attorney on an hourly basis to guide you in the demand writing process.

• This article is for information purposes only and should not be construed as legal advice.

Resources

• How to Win Your Personal Injury Claim
• Auto Accident Personal Injury Insurance Claim: How to Evaluate and Settle Your Loss