A demand letter is a key component of negotiating a car accident settlement. Without a letter, each side could stumble through negotiations for months and never get close to resolving their dispute.
Accident victims use a car accident demand letter to explain what happened and how they were injured, as well as to make a request for compensation.
An effective car accident demand letter must have certain elements, and you should spend considerable time revising it.
Your best option is to call McCravy, Newlon, Sturkie & Clardy to speak with a Greenwood car accident lawyer. We have written countless demand letters over the past 30 years, and we know what works. With a seasoned lawyer by your side, you can focus on recovery, knowing your case is in good hands.
What is a Demand Letter for a Car Accident?
Most car accidents settle, with the person who is at fault for the crash agreeing to pay compensation to the victim. A car accident demand letter is one way to open negotiations.
The demand letter serves many purposes:
- Summarizes the accident and the victim’s injuries.
- Identifies financial losses tied to the accident.
- Demands a specific amount of compensation to settle a claim.
A demand letter also signals to the other side that you are ready to engage in serious settlement negotiations. The other driver, or their insurer, knows you are prepared to file a lawsuit if necessary to obtain compensation.
Key Parts of a Demand Letter
Demand letters follow a certain script. They include critical information that will help the other side see the accident through your eyes and judge whether they should settle. Remember to include these important elements:
- Statement of facts. You need to present your version of the accident. Mention dates, times, and locations. You are setting the scene and providing details of how you were hurt. Remember to mention any defensive actions you took, such as turning the wheel at the last second to avoid a crash.
- Description of your injuries and medical care. Car accidents cause bodily injuries, which you need to describe. You will also attach medical records and/or bills, so mention that in the letter. Remember to use medical terminology, which you can pull directly from your records.
- Discussion of pain and mental anguish. Provide some vivid details about how the accident has changed your life. For example, can you no longer participate in your favorite hobbies because of the accident? Did you miss a vacation you had already planned? Are you struggling with depression? These are important details about pain and suffering to include.
- Explanation of the defendant’s negligence. The letter is usually written to the defendant’s insurance company. You should explain why their insured was negligent. For example, a driver might have been speeding, drunk, or distracted. Refer to specific facts included in your statement of facts in support of your allegations.
- Summary of your damages. You can receive compensation for economic losses, such as medical care, lost wages, and damage to your car. Also identify non-economic damages, such as pain and suffering.
- Demand for compensation. Everything in the letter is building up to this: your demand. You need to include a number you would accept in a settlement. For example, “I would agree to settle this claim for $45,000.” A demand letter without a demand will not effectively move negotiations forward.
- Deadline to hear back. Give the insurer a deadline to get back to you, otherwise, you will take additional legal action (such as filing a lawsuit). It is standard to allow 30 days for a response.
- Attachments. You should attach supporting documents such as medical bills, medical records, car repair bills, and pay stubs to prove lost income.
You might find a car accident demand letter example online. You can certainly use it as a template for your own, but remember to include the details specific to your case.
When Do You Send the Letter?
Timing is always critical when it comes to settlement negotiations. You don’t want to send too early, until you have a good idea of how much money the accident has cost you. At the same time, you don’t want to wait too long, because the statute of limitations might expire.
It is common to wait until you are close to maximum medical improvement. That is the point where extra medical care will not improve your condition much, if at all.
Tips for an Effective Demand Letter
Now that you know the nuts and bolts, let’s talk about how to make your letter polished and effective:
- Do not exaggerate. You want to be truthful and accurate. This is one reason you are including supporting documentation, like medical bills.
- Provide details. You can say, “I feel constant pain.” But it’s better to write, “The constant ache in my broken hip prevents me from sitting up during the day, and at night I only sleep an average of 5 hours due to the discomfort.”
- Give the defendant room to negotiate down. Let’s say you want to receive $50,000 as a settlement. You should not include that number in your demand. Instead, you should include a higher number, which leaves room for the defendant to negotiate with you down to something you will accept.
- Proofread your letter. Ask a friend to read the letter and look for typos, poor grammar, or other errors. You might use a writing program like Grammarly for assistance if you are not a seasoned writer.
Hire an Experienced Car Accident Lawyer to Take Your Case
Car wrecks leave many victims struggling with painful injuries. Going to and from rehab and doctor’s visits can take up all your time.
Instead of struggling to write a demand letter, focus on physical therapy and other treatment. Hire a law firm with more than 30 years of experience in car accident cases. At McCravy, Newlon, Sturkie & Clardy, we can draft a powerful demand letter and forcefully negotiate with the other side for a fair settlement. Contact us to schedule a case review.