How Do I Write an Insurance Claim Demand Letter?
An insurance claim demand letter (or "demand letter') is the first step towards negotiating a settlement. It is typically addressed to the insurance carrier of the party causing the injury. In some cases---such as where a party is uninsured---the letter may be addressed to your insurance carrier. The letter must be written based on the specific facts surrounding your case. Avoid using a form letter as it may not contain the correct information and it may leave out critical components unique to your situation.
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Instructions
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Briefly list the facts of the accident and explain why the insured person is at fault. This provides the insurance company with factual background and explains your position. Avoid any attacks against the insured party, and do not embellish the facts.
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Describe your injuries, medical costs, and the effects your injury has on your daily life and work. According to Nolo.com, a free legal information website, emphasize your pain and suffering, but avoid embellishing or being too dramatic. Back your statements up with medical bills and physician's opinion letters if you have them.
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Write your demand. In the final section of the letter, write what you would settle the case for and what damages you are seeking. The settlement offer must be within the insurance carrier's policy limits (you can't ask for a million dollars if the policy only covers $500,000). Further, seek only damages covered by the policy.
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Provide a reasonable time for the insurance carrier to respond. "Reasonable" is based on the facts of the case, the insurance carriers involved and the parties involved. A reasonable time could be 24 hours, 30 days or anywhere in between , according to the University of Texas School of Law in Austin.
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References
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