08 Feb 2018

What is a Demand Letter to an Insurance Company for Personal Injury

A demand letter is a document, sent by a Personal Injury Lawyer on behalf of the defendant to Insurance company. Demand letter puts the insurance company on notice that the plaintiff has the legal claim against the defendant.

Why use Demand Letters?

Demand letter to an insurance company is always used to initiate the settlement process. Most of the cases in Maryland get settled outside the court, but be prepared to go to court if needed. In this sense, the demand letter is used as the negotiation tactic. The demand letter to an insurance company should create a sense in the insurance company that the plaintiff is serious about the personal injury case. If the insurance company senses the seriousness of demand letter, then they may offer reasonable settlement offers to the plaintiff.

What is included in the Demand Letter

You may not worry about the Demand letter to an insurance company as the whole work is done by your Injury Lawyer, but you should know what us to be included.

 The Facts

The first and foremost thing included in the document is the facts that have led to the dispute. Your lawyer will mention the facts and use the demand letter to inform the insurance company about the events that have occurred and led to the demand notice. Be aware that the facts are seen differently by the insurance company. The facts must be laid in such a manner that places a great emphasis on the defendant’s liability and also decreases the chances of the insurance company to argue against the claim.

The Demand

The most important point is the compensation that you believe is fair enough to settle the case. This amount is the demand that you are making in the Demand letter to an insurance company. The insurance companies always see the bottom line in the case when making a settlement. So in the letter, you should include the benefits that the companies would have if demand is settled. Include the court fees, lawyer fees and the time that would incur if the demand is not settled.

The Law

The most important aspect to be included in the accident settlement agreement letter is to specify a statement how the Law supports your position. You must include the causes of action (for example negligence is the cause of action in personal injury cases) that can be taken against the insurance company. At this time, a personal injury lawyer has a vital role to play. An experienced personal injury lawyer has the idea of how to deal with all the litigations that can be caused by the insurance company. Always involve a Personal Injury lawyer, as they will have immense knowledge and also knows how to apply the law in your situation.

The Opportunity for Settlement

Always indicate in your letter that the insurance company has a chance to settle the case for a reasonable amount. If the company sees that amount to settle your case is less than the cost incurred in going to the court, then companies will try to settle your case. So the compensation asked by you should be reasonable. Be sure that you give a deadline for the company to settle your case. Give time for the insurance companies to respond to your demand notice. Send demand letter by certified mail and confirm that the insurance company receives the letter, by requesting a return receipt.

Supporting Documents

Your accident settlement agreement letter should always include supporting documentation. If not included the company might get a conclusion that you are not entitled to that much amount of compensation. So always include the documents in support of your demand letter.

The different types of documents to be included

  • Medical Records, bills, prescriptions
  • Photographs of the accident
  • Photographs of your injuries
  • Letters from the office that the plaintiff had to miss work
  • Reports by experts indicating the extent of your injury.

The main key in this documentation is that you should provide complete information and the facts involved to pass the message that your insurance company must seriously involve in your case. If you send an organized and well-detailed demand letter, then there is a fair chance that your compensation is settled fast by the company.


Personal Injury cases are very complicated. You would have many doubts regarding the demand letter to the insurance companies. Contact our Personal Injury Attorneys in Maryland at Law Office of Alice Pare for a free initial consultation at (301) 515-1190.

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