California Car Accident Demand Letters

Best Sources:

• Police Report: Usually lists both drivers’ insurance companies, policy numbers, and phone numbers
• DMV Information Exchange: If police didn’t respond, California requires drivers to exchange insurance info at the scene (Vehicle Code § 16025)
• Your Own Insurance Company: If you filed a claim with your insurer, they may have already identified the at-fault driver’s carrier
• California DMV: You can request driver and vehicle information, but DMV won’t provide insurance details directly

Method	Pros	Cons
Certified Mail, Return Receipt Requested	Proof of delivery; creates legal record of when insurance received letter	Takes 3-7 days; requires someone to sign
Email (to claims adjuster)	Instant delivery; can send large attachments (medical records, photos)	Less formal; may get lost in inbox; no automatic proof of receipt
Fax	Immediate; generates confirmation receipt	Outdated; some carriers no longer accept faxes
Online Claims Portal	Fast; automated tracking	Upload limits; may not accept demand letters through portal

💡 Best Practice: Send via both certified mail AND email to the assigned claims adjuster. This creates redundant proof of delivery and expedites review.

1. Assigned Claims Adjuster (Preferred)

• After accident, the insurance company assigns a claims adjuster to the file
• Adjuster usually contacts you within 24-72 hours of the accident
• Get their name, direct phone number, email, and fax
• Send demand directly to adjuster with copy to claims supervisor

2. Claims Department (If No Adjuster Assigned Yet)

• Address to: “Claims Manager” or “Claims Department”
• Include at-fault driver’s name, policy number, and accident date in subject line
• Insurance will route to appropriate adjuster

3. Third-Party Administrator (TPA)

• Some insurance companies outsource claims to TPAs (e.g., Sedgwick, Gallagher Bassett, Crawford & Company)
• If adjuster works for TPA, send demand to TPA with copy to insurance company
• TPA must forward to insurance company, but direct copy ensures faster review

Top California Auto Insurers (by market share):

• State Farm – Claims: 1-800-SF-CLAIM (1-800-732-5246) | Online: statefarm.com/claims
• GEICO – Claims: 1-800-841-3000 | Online: geico.com/claims
• Progressive – Claims: 1-800-776-4737 | Online: progressive.com/claims
• Allstate – Claims: 1-800-ALLSTATE (1-800-255-7828) | Online: allstate.com/claims
• USAA – Claims: 1-800-531-8722 | Online: usaa.com/claims (military members/families only)
• Farmers – Claims: 1-800-435-7764 | Online: farmers.com/claims
• Liberty Mutual – Claims: 1-800-225-2467 | Online: libertymutual.com/claims
• Nationwide – Claims: 1-877-669-6877 | Online: nationwide.com/claims
• AAA (CSAA Insurance Group) – Claims: 1-800-222-4357 | Online: csaa-insurance.aaa.com
• Mercury Insurance – Claims: 1-800-503-3724 | Online: mercuryinsurance.com/claims

California Insurance Code imposes strict timelines on insurers:

• 15 days: Insurer must acknowledge receipt of your claim (Cal. Ins. Code § 2695.5(b))
• 40 days: Insurer must accept or deny the claim after receiving all documentation (Cal. Ins. Code § 2695.7(b))
• 30 days: If claim is accepted, insurer must issue payment within 30 days (Cal. Ins. Code § 2695.7(f))

These are quantifiable out-of-pocket losses with receipts, bills, and documentation:

1. Medical Expenses

• Emergency room treatment
• Ambulance transport
• Hospital stays and surgeries
• Doctor visits and specialist consultations
• Physical therapy and rehabilitation
• Prescription medications
• Medical equipment (crutches, wheelchair, brace)
• Chiropractic care
• Future medical expenses (if ongoing treatment needed – requires expert testimony)

📌 Important: Under Howell v. Hamilton Meats, you can only recover the amount actually paid or incurred, not the inflated billed amount. If health insurance negotiated your $20,000 ER bill down to $8,000, you can claim $8,000 (plus any future balance you’re responsible for).

2. Lost Wages

• Wages lost due to medical appointments and recovery
• Sick leave or vacation days used
• Lost overtime or bonus opportunities
• Lost self-employment income (requires tax returns or profit/loss statements)
• Future lost earning capacity (if permanent disability or long-term impairment)

Proof Required: Employer letter on company letterhead stating dates missed, hourly wage/salary, total wages lost. Attach recent pay stubs.

3. Property Damage

• Vehicle Repair Costs: Reasonable cost to repair your vehicle to pre-accident condition
• Total Loss: If vehicle is totaled (repair cost exceeds fair market value), you recover the fair market value immediately before the accident
• Diminished Value: Even after repair, your vehicle may be worth less due to accident history (this is recoverable in California)
• Rental Car: Reasonable cost of rental vehicle while yours is being repaired (or during the period to obtain replacement if totaled)
• Personal Property: Damaged items inside the vehicle (laptop, phone, glasses, car seat)

These are subjective losses without a receipt—harder to quantify but often the largest component of your settlement.

Pain and Suffering

• Physical pain from injuries
• Discomfort during recovery and treatment
• Chronic pain or permanent impairment
• Scarring and disfigurement

Emotional Distress

• Anxiety, fear, or PTSD from the accident
• Depression related to injuries or lifestyle changes
• Loss of enjoyment of life (can’t play sports, travel, enjoy hobbies)
• Embarrassment or humiliation from visible injuries

Loss of Consortium

• Impact on relationship with spouse (separate claim by spouse)
• Loss of companionship, affection, and intimacy

Include copies (not originals) of:

• Police Report: Shows officer’s fault determination, citations, witness info
• Photos: Vehicle damage (all angles), accident scene, skid marks, traffic controls, your visible injuries
• Medical Records: ER reports, discharge summaries, doctor’s notes, diagnostic imaging (X-rays, MRI, CT scans), physical therapy notes
• Medical Bills: Itemized bills from all providers showing dates of service, procedure codes, amounts
• Proof of Payment: Insurance EOBs (Explanation of Benefits) showing what was paid; receipts for out-of-pocket expenses
• Lost Wage Verification: Letter from employer on company letterhead; recent pay stubs
• Repair Estimates: At least 2 estimates from licensed repair shops; total loss valuation if applicable
• Rental Car Receipts: If you incurred rental expenses
• Witness Statements: Written statements from anyone who saw the accident

💡 Organization Tip: Create a table of contents listing all exhibits by number (Exhibit A: Police Report, Exhibit B: Medical Records, etc.). This makes your demand package professional and easy for the adjuster to review.

Strengthen your demand letter by citing California law:

Liability:

• California Vehicle Code § 21703: Following too closely
• California Vehicle Code § 21801: Failure to yield right of way
• California Vehicle Code § 21453: Running a red light
• California Vehicle Code § 22350: Basic speed law (unsafe speed for conditions)
• California Vehicle Code § 22107: Unsafe lane change

Damages:

• California Civil Code § 1431.2: Pure comparative negligence
• California Civil Code § 3333: Recovery for personal injury damages
• California Insurance Code § 2695.7: Insurer’s duty to promptly investigate and respond

Example Citation:
“The at-fault driver violated California Vehicle Code § 21703 by following too closely, failing to maintain a safe distance, and rear-ending my client’s vehicle. Under California’s pure comparative negligence rule (Civil Code § 1431.2), my client bears 0% fault for this collision and is entitled to full recovery of all economic and non-economic damages.”

Typical Injuries: Neck strain, back sprain, whiplash, muscle soreness, minor contusions

Treatment: ER visit or urgent care, follow-up with primary care doctor, possibly 4-8 weeks of physical therapy or chiropractic care, over-the-counter pain medication

Typical Settlement Range:

Medical Expenses	Pain & Suffering Multiplier	Total Settlement Range
$2,000 – $8,000	1.5x – 2.5x	$3,000 – $20,000

Example:

• Medical bills: $5,000
• Lost wages: $1,000 (3 days of work missed)
• Pain & suffering: $10,000 (2x medical expenses)
• Total Demand: $16,000
• Likely Settlement: $12,000 – $14,000 (after negotiation)

Typical Injuries: Broken bones (arm, leg, ribs, collarbone), herniated/bulging discs requiring injections, mild traumatic brain injury (concussion), torn ligaments/tendons

Treatment: ER, orthopedic specialist, possible surgery (plates/screws for fractures, epidural injections for disc issues), 8-16 weeks physical therapy, prescription pain medication

Typical Settlement Range:

Medical Expenses	Pain & Suffering Multiplier	Total Settlement Range
$15,000 – $75,000	2.5x – 4x	$40,000 – $300,000

Example (Fractured Arm with Surgery):

• Medical bills: $45,000 (ER, surgery, orthopedic follow-ups, PT)
• Lost wages: $8,000 (6 weeks off work)
• Pain & suffering: $135,000 (3x medical expenses)
• Total Demand: $188,000
• Likely Settlement: $140,000 – $160,000

Typical Injuries: Spinal cord injuries (paralysis), severe traumatic brain injury, amputations, multiple fractures, permanent disability, scarring/disfigurement

Treatment: Extended hospital stay, multiple surgeries, long-term rehabilitation, home modifications, ongoing care (life care plan), future medical needs

Typical Settlement Range:

Medical Expenses	Pain & Suffering Multiplier	Total Settlement Range
$100,000 – $1,000,000+	4x – 5x (plus future damages)	$500,000 – $5,000,000+

Example (Severe TBI with Permanent Disability):

• Past medical bills: $350,000
• Future medical expenses (life care plan): $1,200,000
• Past lost wages: $75,000
• Future lost earning capacity: $800,000
• Pain & suffering: $2,000,000
• Total Demand: $4,425,000
• Likely Settlement: Negotiated based on policy limits and defendant assets

The Problem: California minimum insurance is only $15,000 per person for bodily injury. If your damages exceed $15,000 (very common even in moderate injury cases), the at-fault driver’s insurance will only pay up to their policy limit.

Your Options:

• File Underinsured Motorist (UIM) Claim: If you have UIM coverage on your own policy, it covers the gap between the at-fault driver’s limits and your actual damages (up to your UIM policy limits)
• Sue the At-Fault Driver Personally: You can pursue a lawsuit against the driver for the excess amount, but this is often impractical—if they only carry minimum insurance, they likely don’t have significant assets to collect from

Example:

• Your total damages: $80,000
• At-fault driver’s policy limit: $15,000
• Your UIM coverage: $100,000
• Recovery: $15,000 from at-fault driver’s insurer + $65,000 from your UIM coverage = $80,000 total

Typical Timeline for California Car Accident Claims:

Stage	Timeline	Notes
Accident Occurs	Day 0	Report to insurance immediately
Treatment Phase	1 week – 6+ months	Do NOT send demand until treatment is complete or you reach maximum medical improvement (MMI)
Gather Documentation	2-4 weeks after MMI	Collect medical records, bills, wage loss letters, repair estimates
Send Demand Letter	After all documentation gathered	Include 30-day response deadline
Insurer Reviews Demand	2-8 weeks	Adjuster reviews, may request additional documentation, makes initial offer
Negotiation Phase	1-3 months	Back-and-forth counteroffers; may involve mediation
Settlement Reached	3-9 months from accident	Sign release, receive payment within 30 days
File Lawsuit (if no settlement)	Within 2 years of accident	Litigation can take 1-3 years to reach trial

What to Expect After Sending Your Demand:

1. Initial Lowball Offer (Week 2-4)

• Adjuster responds with offer typically 20-40% of your demand
• Letter includes reasons for low offer (disputed liability, pre-existing conditions, excessive treatment, etc.)
• Do NOT accept the first offer—it’s almost always negotiable

2. Counter-Demand (Week 5-6)

• Respond with detailed rebuttal to adjuster’s arguments
• Lower your demand slightly (e.g., from $50k to $45k) to show willingness to negotiate
• Provide additional documentation to support your position

3. Second Offer (Week 7-10)

• Adjuster increases offer (typically to 40-60% of original demand)
• May request phone negotiation or in-person mediation

4. Final Settlement (Week 12-16)

• After 2-4 rounds of negotiation, parties reach agreement
• You sign release (waiving right to sue)
• Insurance issues payment within 30 days (CA Ins. Code § 2695.7)

💡 Negotiation Leverage: Your strongest leverage is the credible threat of litigation. If adjuster knows you’re prepared to file a lawsuit (and have the resources to do so), they’re more likely to make a fair offer. An attorney-drafted demand letter signals you’re serious.

You may be able to handle your own claim if ALL of the following apply:

• Liability is clear: Other driver was 100% at fault (rear-ended you, ran red light, police cited them)
• Minor injuries only: Soft tissue injuries (whiplash, sprains) with full recovery in 8-12 weeks
• Medical expenses under $10,000: Treatment limited to ER visit, urgent care, chiropractic, or physical therapy
• No ongoing symptoms: You’ve reached maximum medical improvement with no permanent disability
• No lost wages (or minimal): Missed only 1-2 days of work
• Insurance company is cooperative: Adjuster responds promptly, doesn’t dispute fault
• Reasonable settlement offer: Insurance offers 2-3x your medical expenses without much pushback

Example DIY Case:

• Rear-ended at stop sign (other driver cited)
• Neck strain, treated with 6 weeks of chiropractic care
• Medical bills: $3,500
• Lost wages: $500 (1 day of work)
• Demand: $12,000 ($3,500 medical + $500 wages + $8,000 pain/suffering)
• Settlement: $9,500 (after brief negotiation)
• Net recovery: $9,500 (no attorney fees)

1. Severe or Permanent Injuries

• Broken bones requiring surgery
• Spinal cord injuries or paralysis
• Traumatic brain injury (TBI) or concussion with lasting symptoms
• Permanent scarring or disfigurement
• Herniated discs requiring injections or surgery
• Any injury with permanent disability or ongoing medical needs

Why: Future medical costs and lost earning capacity require expert testimony from life care planners and economists. You need an attorney to properly value and prove these damages.

2. Disputed Liability

• Insurance denies fault or claims you share significant responsibility
• No police report or police report is inconclusive
• Multi-vehicle accidents with unclear fault
• Other driver blames you for the accident

Why: You may need accident reconstruction experts, witness depositions, and legal arguments to establish liability. Even under comparative fault, reducing your fault percentage by 10-20% can mean tens of thousands more in recovery.

3. Insurance Company Denies Claim or Makes Unreasonably Low Offer

• Insurance denies claim entirely
• Insurance offers only 10-20% of your actual damages
• Adjuster refuses to negotiate in good faith
• Insurance claims your injuries are pre-existing or exaggerated

Why: An attorney can threaten litigation (and actually file if necessary) to pressure the insurer to make a fair offer. Adjusters take attorney demands more seriously.

4. Policy Limits Are Insufficient (Underinsured Motorist Claims)

• At-fault driver has minimum insurance ($15k/$30k) but your damages are $50k+
• You need to file UIM claim against your own insurance
• Multiple potential defendants (driver + employer, driver + vehicle owner, etc.)

Why: UIM claims involve complex policy interpretation and coordination of multiple insurance policies. Mistakes can result in forfeiting coverage.

5. Commercial Vehicle, Rideshare, or Government Entity Involved

• Hit by commercial truck, delivery van, or company vehicle
• Uber/Lyft accident (special insurance coverage rules apply)
• Accident with city bus, police car, or other government vehicle

Why: Different rules, higher insurance limits, and potential for multiple defendants. Government claims require notice within 6 months (very short deadline). Commercial truck cases involve federal regulations and corporate liability.

6. Wrongful Death Cases

• The accident resulted in a fatality

Why: Wrongful death claims involve complex damages (loss of companionship, loss of financial support, funeral expenses) and require navigating estate laws and beneficiary rights. These cases should never be handled without an attorney.

Studies show represented claimants recover significantly more, even after attorney fees:

Scenario	DIY Settlement	With Attorney
Minor injury, clear fault	$8,000 (keep 100%) Net: $8,000	$12,000 (pay 33% fee) Net: $8,040
Moderate injury, disputed fault	$15,000 (keep 100%) Net: $15,000	$45,000 (pay 33% fee) Net: $30,150
Severe injury, policy limits issue	$30,000 (insurer lowball) Net: $30,000	$150,000 (litigation/UIM claim) Net: $100,000

Why Attorneys Get Higher Settlements:

• Adjusters know attorney will file lawsuit if offer is unreasonable (threat of litigation is real)
• Attorneys properly value future damages and non-economic losses
• Attorneys have access to expert witnesses to strengthen your case
• Attorneys know policy limits and insurance coverage issues
• Insurance companies have internal guidelines to offer more to represented claimants

Contingency Fee (Standard for PI Cases):

• 33-40% of settlement: Attorney only gets paid if you recover money
• Typical breakdown:
  • 33% if case settles before filing lawsuit
  • 40% if case goes to trial
• Costs: You may be responsible for litigation costs (filing fees, expert witness fees, deposition costs) whether you win or lose—ask upfront
• No recovery = no fee: If you don’t win or settle, you don’t owe attorney fees (but may owe costs)

Example:

• Settlement: $100,000
• Attorney fee (33%): -$33,000
• Medical liens to be paid: -$15,000
• Litigation costs: -$2,000
• Your net recovery: $50,000

• ✅ Licensed in California: Verify active bar membership at calbar.ca.gov
• ✅ Experience with car accident cases: Ask how many auto accident cases they’ve handled and average settlement amounts
• ✅ Trial experience: Even if case settles, you want attorney who can credibly threaten trial
• ✅ Clear fee agreement: Written retainer agreement explaining fees, costs, and responsibilities
• ✅ Good communication: Returns calls/emails promptly, explains process clearly
• ✅ No upfront fees: Reputable PI attorneys work on contingency—beware of anyone asking for money upfront

🚩 Red Flags:

• Guarantees specific settlement amount (“I’ll get you $100k for sure”)
• Asks for upfront payment (contingency means no upfront fees)
• Pressures you to sign immediately without reading retainer agreement
• Primarily handles unrelated practice areas (criminal defense, divorce, etc.)

What Sets This Service Apart:

• Real California Attorney: Not a paralegal, legal assistant, or form letter generator. Your demand letter is researched, drafted, and signed by a licensed California attorney.
• Custom Legal Research: Every demand letter includes case-specific analysis of applicable California Vehicle Code sections, liability doctrines, and damage calculations.
• Attorney Letterhead & Signature: Insurance adjusters know an attorney-signed letter means you’re serious and the threat of litigation is credible.
• Strategic Leverage: Adjusters have internal guidelines to offer more when facing attorney representation—even if it’s just for the demand letter stage.
• Professional Documentation: Organized exhibits, legal citations, and persuasive writing that positions your case for maximum recovery.

To draft your demand letter, please provide:

1. Accident Information:

• Date, time, and location of accident
• Your description of how accident occurred
• Police report (if available)
• Photos of accident scene and vehicle damage
• Witness contact information

2. Insurance Information:

• At-fault driver’s insurance company, policy number, claim number
• Assigned claims adjuster’s name and contact info (if known)
• Your own insurance information

3. Medical Documentation:

• All medical records from ER, doctors, specialists, physical therapy
• All medical bills (itemized)
• Proof of payment or insurance EOBs showing amounts paid
• Prescriptions and medication receipts

4. Lost Wage Information:

• Letter from employer confirming dates missed and wages lost
• Pay stubs showing regular earnings

5. Property Damage:

• Repair estimates (at least 2) or total loss valuation
• Photos of vehicle damage
• Rental car receipts (if applicable)

📧 Send all documents to: owner@terms.law

Have questions about your case? Want to discuss whether a demand letter service or full representation is right for you? Schedule a consultation to review your situation and explore your options.

During the consultation, we’ll discuss:

• Liability and strength of your case
• Estimated value of your damages
• Whether DIY, demand letter service, or full representation makes sense
• Timeline and next steps
• Your questions and concerns

• Limited Scope: The demand letter service is for document drafting only. It does not establish an attorney-client relationship for purposes of representation, negotiation, or litigation.
• No Guarantee of Results: While attorney-drafted demand letters typically result in higher settlement offers, I cannot guarantee any specific outcome or settlement amount.
• You Remain Responsible: You are responsible for negotiating with the insurance company, responding to their requests, and making settlement decisions.
• Statute of Limitations: You remain responsible for monitoring deadlines and filing suit if necessary. The 2-year statute of limitations for personal injury claims is YOUR responsibility to track.
• Draft Lawsuit Is Not Filed: The draft complaint included in the $900 package is provided for your use but is not filed by me. You must file it yourself (pro se) or hire an attorney for representation if settlement fails.

Case value depends on multiple factors: injury severity, medical expenses, lost wages, liability clarity, and insurance policy limits. As a general rule:

• Minor soft tissue injuries: $3,000 – $20,000
• Moderate injuries (fractures, herniated discs): $40,000 – $300,000
• Severe/catastrophic injuries: $500,000 – $5,000,000+

See the Settlement Ranges tab for detailed breakdowns by injury type.

Wait until you’ve finished treatment and reached maximum medical improvement (MMI). If you settle too early, you cannot reopen the case if complications arise or injuries worsen. Typical timeline:

• Minor injuries: 6-12 weeks after accident
• Moderate injuries: 3-6 months after accident
• Severe injuries: 6-12+ months after accident

You must send your demand and settle (or file suit) before the 2-year statute of limitations expires.

If the at-fault driver was uninsured:

• File a claim with your own insurer under your Uninsured Motorist (UM) coverage
• If you don’t have UM coverage, your options are limited to suing the driver directly (often impractical if they have no assets)
• You may be able to recover property damage from your collision coverage

California requires all drivers to carry insurance, but approximately 15% drive uninsured. This is why UM coverage is critical.

If your damages exceed the at-fault driver’s policy limits:

• File an Underinsured Motorist (UIM) claim with your own insurance to cover the gap (up to your UIM policy limits)
• Send a “policy limits demand” to the at-fault driver’s insurer to secure the maximum available from their policy first
• If no UIM coverage, you can sue the driver personally, but collection is difficult if they lack assets

Example: Your damages are $80k, at-fault driver has $15k coverage, you have $100k UIM coverage → You recover $15k from at-fault insurer + $65k from your UIM = $80k total.

Yes. California follows “pure comparative negligence” (Civil Code § 1431.2). Your recovery is reduced by your percentage of fault, but you can recover even if you were mostly at fault.

• You’re 20% at fault → Recover 80% of damages
• You’re 50% at fault → Recover 50% of damages
• You’re 80% at fault → Recover 20% of damages

Insurance companies will try to maximize your fault percentage to reduce their payout. A strong demand letter with evidence is crucial.

California statutes of limitation:

• Personal injury: 2 years from accident date (CCP § 335.1)
• Property damage: 3 years from accident date (CCP § 338)
• Wrongful death: 2 years from date of death

If you miss this deadline, you lose your right to sue forever. Even if the other driver was 100% at fault and your injuries are severe, courts will dismiss your case if filed late.

No. You are NOT legally required to give a recorded statement to the at-fault driver’s insurance company (you may be required to cooperate with your own insurer under your policy). Politely decline:

“I’d prefer to provide a written statement after I’ve had a chance to review the police report and speak with my attorney. I’ll be sending a demand letter with all the details.”

Recorded statements are often used to trap you into admissions that hurt your case (e.g., “I’m feeling fine” recorded 2 days after accident before symptoms worsen).

Under Proposition 213 (Civil Code § 3333.4), if you were driving without insurance:

• ✅ You CAN recover economic damages (medical bills, lost wages, property damage)
• ❌ You CANNOT recover non-economic damages (pain and suffering, emotional distress)

Exception: If the at-fault driver was convicted of DUI or felony hit-and-run, Prop 213 doesn’t apply and you can recover pain and suffering even if you were uninsured.

Typical timeline:

• Simple cases (minor injuries, clear fault): 3-6 months from accident
• Moderate cases (disputed liability or higher damages): 6-12 months
• Complex cases (severe injuries, litigation required): 1-3 years

The insurance company has 40 days to accept or deny your claim after receiving all documentation (CA Ins. Code § 2695.7). If accepted, they must pay within 30 days.

You can handle your own claim if:

• Liability is 100% clear
• Injuries are minor (soft tissue, full recovery)
• Medical expenses under $10,000
• Insurance is cooperative

You should hire a lawyer if:

• Severe or permanent injuries
• Disputed liability
• Insurance denies claim or lowballs offer
• Policy limits are insufficient (UIM claim needed)
• Commercial vehicle, rideshare, or government entity involved

See the When to Hire a Lawyer tab for detailed guidance.

Under California’s Howell v. Hamilton Meats rule, you can only recover the amount actually paid or incurred, not the inflated billed amount.

• Example: Hospital bills $25,000 for ER treatment. Your health insurance negotiates and pays $9,000. You can claim $9,000 (not $25,000).
• Exception: If you paid cash or have outstanding medical liens, you can claim the full amount you’re responsible for.

This significantly impacts settlement calculations, especially in cases with health insurance coverage.

No. Once you sign a release and settle your case, you cannot reopen it later—even if you discover new injuries or complications. This is why it’s critical to:

• Wait until you finish treatment and reach maximum medical improvement (MMI)
• Consult with doctors about long-term prognosis
• Never settle while still treating or experiencing symptoms

Insurance adjusters often pressure you to settle quickly (“This offer expires in 10 days!”). Don’t fall for it.

California Insurance Code requires insurers to:

• Acknowledge receipt of your claim within 15 days (§ 2695.5)
• Accept or deny the claim within 40 days after receiving all documentation (§ 2695.7)

If the insurer violates these timelines, you may have a claim for bad faith. Options:

• Send follow-up letter citing California Insurance Code deadlines
• File complaint with California Department of Insurance
• Consult with attorney about bad faith claim
• File lawsuit before statute of limitations expires

A policy limits demand is a formal demand for the full amount of the at-fault driver’s insurance coverage (e.g., $15,000 or $100,000) with a short deadline (typically 30 days).

When to use:

• Your damages clearly exceed the policy limits
• Liability is clear and undisputed
• You want to secure the maximum available from that policy before pursuing other sources (UIM, personal assets)

Why it matters: If the insurer fails to accept a reasonable policy limits demand and you later win more at trial, the insurer may be liable for the excess judgment (bad faith failure to settle). This creates pressure for insurers to settle within policy limits when liability is clear.