Car Accident Demand Letters: How to Write, Send, and Negotiate
A practical guide for injury victims seeking fair compensation and drivers who received a demand letter after a crash
90%+
of injury cases settle without trial
3–6 months
typical timeline from demand to settlement
3.5x
higher settlements with attorney representation
When to send a car accident demand letter
A car accident demand letter is your formal written request for compensation after a collision caused by another driver. It is typically sent after you finish medical treatment (or reach maximum medical improvement) and before filing a lawsuit.
Most injury claims settle through demand letters and negotiations, avoiding court entirely. But timing is critical: send too early (while still treating) and you may undervalue your claim. Send too late (near the statute of limitations deadline) and you lose negotiation leverage.
Most states have a 2–3 year statute of limitations for personal injury claims. A demand letter is optional—you can file suit without one—but it is the standard first step in serious injury cases. Check your state's deadline and work backward from there.
Who receives the demand letter?
In most car accident cases, you send the demand to the at-fault driver's liability insurance company, not to the driver personally. Here's the typical flow:
Standard liability claim (third-party)
Recipient: The at-fault driver's auto insurance carrier
Address: Claims department or assigned adjuster
How to find: The adjuster typically contacts you after the accident; if not, call the driver's insurer and open a claim using the other driver's policy number
Subject line: Reference the claim number, date of loss, and your name
Uninsured / underinsured motorist (UM/UIM) claim
Recipient: Your own auto insurance carrier
When: The other driver has no insurance or insufficient coverage
Process: You make a "first-party" claim under your UM/UIM coverage
Note: Many UM/UIM policies require arbitration rather than court
California-specific guidance: If your car accident happened in California, I have a dedicated California car accident demand letters guide that covers California's comparative negligence rules, Prop 213 (no pain-and-suffering recovery if you were uninsured), Government Claims Act deadlines for accidents with public vehicles, and typical California settlement ranges.
What goes in a car accident demand letter?
A strong demand letter is organized, factual, and persuasive without being emotional or threatening. Most follow this structure:
Opening / claim identification: Your name, date of accident, claim number, policy number, parties involved
Liability narrative: Clear, chronological description of how the accident happened and why the other driver is at fault (cite traffic violations, police report, witness statements)
Injuries and treatment: Emergency room visit, diagnosis, follow-up care, physical therapy, imaging results, current status, prognosis
Damages breakdown: Medical bills (past and estimated future), lost wages, out-of-pocket costs, property damage, pain and suffering
Demand and deadline: Specific dollar amount or policy limits request, reasonable response window (usually 30 days), next steps if no response
Enclosures: Police report, medical records and bills, wage loss letter, repair estimates, photos, witness statements
When to hire an attorney vs DIY
You are legally allowed to send your own demand letter. For very minor crashes (small property damage, a few chiropractic visits, no lasting injury), DIY can make sense.
However, most studies show that claimants with attorneys recover 3–3.5x more than those without, even after attorney fees. An attorney is strongly recommended when:
You received a car accident demand letter — now what?
If you were the driver in an accident and now someone is demanding money for injuries, your first 48–72 hours are critical. The right steps now can protect you from personal liability and bad-faith exposure later.
Do not ignore the letter. Even if you think the claim is exaggerated or fraudulent, silence can hurt you. If you are insured, your policy requires you to cooperate and notify your insurer promptly.
First 48 hours: triage checklist
Notify your auto insurance carrier immediately. Forward the entire demand letter to your insurer via email and phone. Most policies have strict notice requirements.
Do not contact the claimant or their attorney directly. Once you tender the claim to your insurer, let them handle all communication.
Gather your own records: photos from the scene, your phone logs, GPS data, dash cam footage, repair estimates, medical records if you were also injured.
Review your insurance policy: What are your liability limits? Do you have umbrella coverage? What is your duty to cooperate?
Do not post about the accident on social media. Claimants and their attorneys will look at your posts and use them to challenge your version of events.
What your insurer will do
Once notified, your liability carrier will:
Assign a claims adjuster to investigate the claim and determine if you were at fault.
Evaluate damages: Review the claimant's medical records, bills, and wage loss documentation.
Determine coverage: Confirm your policy was active on the date of the accident and that the claim falls within your liability coverage.
Negotiate or deny: Make a settlement offer, request more information, or deny the claim if they believe you are not liable.
Your insurer has a duty to defend and indemnify you up to your policy limits, as long as the claim is covered. They will provide a defense attorney if a lawsuit is filed, and they will pay any settlement or judgment (up to your limits) that results from covered conduct.
When to hire your own attorney
In most cases, your insurance company's handling is enough. But you may need independent counsel when:
Hire independent counsel if:
The demand exceeds your policy limits by a large margin (excess exposure)
Your insurer is slow to respond or seems to be mishandling the claim (potential bad faith)
You were driving a company vehicle and your employer's interests may conflict with yours
The claimant is alleging intentional conduct (assault, road rage) that your policy may not cover
You have significant personal assets at risk beyond your insurance
What NOT to do
Do not offer to pay the claimant directly or "settle this without insurance"
Do not admit fault or make statements about what happened in writing to the claimant
Do not agree to be recorded or sign any documents without reviewing with your insurer or counsel
Do not hide information from your insurer (this can void your coverage)
California-specific note: California is a "pure comparative negligence" state, meaning you can be found partially at fault and the claimant's recovery will be reduced by their share of fault. If the demand letter accuses you of 100% fault, your insurer may argue the claimant was also negligent (speeding, distraction, failure to yield, etc.) to reduce exposure. See the California guide for more on comparative fault and Prop 51 (joint-and-several liability for economic vs non-economic damages).
Received a demand letter and need strategic advice?
I advise individuals and small businesses on how to respond to car accident demand letters, especially in California. Contact me to discuss your options.
Evidence and documentation for car accident demand letters
A demand letter is only as strong as the evidence behind it. Whether you are preparing to send a demand or defending against one, the same core documents determine the outcome.
Prescriptions and medications: Pharmacy receipts, prescription logs
Medical bills: Itemized bills from all providers; in some states you also need "proof of payment" or explanation-of-benefits (EOB) from health insurance
Prognosis letters: From treating doctors, describing permanent impairment or future care needs
Tip: Keep a daily pain journal. Note your symptoms, how they affect your work and daily activities, and any setbacks or improvements. Adjusters and juries respond better to specific, dated examples than vague claims of "constant pain."
Economic loss documentation
Employer wage loss letter: Job title, pay rate, hours missed, lost overtime, reduced schedule
Pay stubs and W-2s: Proof of income before and after the accident
Self-employment income proof: Tax returns, 1099s, profit-and-loss statements, canceled contracts
Out-of-pocket expenses: Uber/Lyft to medical appointments, home health aide, medical equipment, parking, prescription co-pays
Vehicle and property damage
Repair estimates: Two or three estimates from body shops
Final repair invoice: Or total-loss settlement worksheet if the car was totaled
Rental car receipts: Daily rate and total days rented
Pre-accident value: KBB, NADA, or recent sales comps if disputing total-loss offer
Personal property loss: Cell phone, laptop, child car seats, sunglasses, etc.
Diminished value appraisal: If the car was repaired but is worth less than before the accident
Insurance and policy information
Your own auto policy declarations page: Shows your liability, UM/UIM, and med-pay limits
At-fault driver's policy info: If available, confirm coverage and limits
Health insurance EOBs: Explanation of benefits showing what your health insurer paid vs what providers billed
Correspondence with adjusters: Emails, letters, recorded statement transcripts
Do not give a recorded statement to the other driver's insurer without consulting an attorney first. Adjusters are trained to ask questions that can undermine your claim (prior accidents, gaps in treatment, exaggeration of symptoms). Anything you say can be used against you later.
Need help organizing your evidence?
I help injury claimants assemble complete demand packages and identify gaps in their documentation before sending to insurers. California focus.
How car accident cases settle and what they are worth
Most people want two answers: How much is my case worth? and How long will it take to settle? The answers depend on injury severity, liability clarity, available insurance, and how well you document your damages.
These are illustrative ranges based on common fact patterns. Your case may be higher or lower depending on state law, policy limits, and specific facts.
Minor soft-tissue injuries
Range: $5,000–$25,000
Whiplash, minor sprains, short chiropractic or PT treatment
Lifetime lost earnings, home modifications, 24/7 care
Policy limits are often the real ceiling. Many drivers carry only their state's minimum liability coverage ($15k/$30k, $25k/$50k, etc.). If your damages exceed the at-fault driver's limits, you must pursue UM/UIM coverage, your own health insurance, or sue the driver personally (often not collectible).
How long does it take to settle?
Timeline from demand letter to payment varies widely, but typical patterns:
Most cases settle before trial. Even when a lawsuit is filed, roughly 90–95% of personal injury cases settle at some point during litigation (often at mediation or shortly before trial).
Below are example paragraphs and snippets you can adapt for your own demand letter or response. These are starting points—customize them to match your facts, tone, and local law.
Opening paragraph (claimant sending demand)
Example Opening
Re: Demand for Settlement — [Your Name] v. [At-Fault Driver Name]
Date of Loss: [Date]
Claim No.: [Claim Number]
Policy No.: [Policy Number]
Dear [Adjuster Name or "Claims Department"]:
I am writing on behalf of [claimant name] regarding the above-referenced motor vehicle collision that occurred on [date] at approximately [time] at [location]. Your insured, [driver name], was operating a [year/make/model] and collided with my vehicle, a [year/make/model], causing significant property damage and personal injuries.
This letter constitutes a formal demand for compensation for all damages resulting from your insured's negligence. I have enclosed all relevant documentation, including the police report, medical records and bills, wage loss verification, and photographic evidence.
Liability narrative snippet (rear-end collision)
Liability Example
On [date], I was traveling northbound on [street name] in the right lane, approaching the intersection of [cross street]. Traffic slowed ahead of me due to a red traffic signal. I came to a complete stop approximately 20 feet behind the vehicle in front of me.
Your insured was traveling in the same lane, directly behind my vehicle. Without warning, your insured's vehicle struck the rear of my vehicle with significant force, propelling my car forward several feet.
The police report (attached as Exhibit A) confirms that your insured was cited for following too closely in violation of [state statute]. The officer noted visible damage to the rear bumper, trunk, and rear quarter panel of my vehicle, and front-end damage to your insured's vehicle. Your insured admitted to the officer that he "didn't see the brake lights in time" and was "looking down at his phone."
Under the law of this state, a rear-end collision creates a rebuttable presumption of negligence by the following driver. Your insured has provided no evidence to rebut this presumption. The physical evidence, police report, and your insured's own admissions confirm that he was solely responsible for this collision.
Damages summary snippet
Damages Example
As a direct and proximate result of your insured's negligence, I sustained the following damages:
MEDICAL EXPENSES (past and incurred):
Emergency room visit (ABC Hospital, [date]): $3,450.00
Follow-up with Dr. [Name], orthopedic specialist: $1,200.00
MRI of cervical spine: $2,100.00
Physical therapy (12 sessions at XYZ Therapy): $1,800.00
Prescription medications: $240.00
TOTAL MEDICAL EXPENSES: $8,790.00
LOST WAGES:
I was unable to work for 3 weeks following the accident due to severe neck and back pain. I am employed as [job title] at [company name], earning $28 per hour. My employer has verified that I missed 120 hours of work due to this accident.
TOTAL LOST WAGES: $3,360.00
PROPERTY DAMAGE:
Repair to my vehicle (attached estimate from DEF Auto Body): $5,600.00
Rental car for 14 days: $560.00
TOTAL PROPERTY DAMAGE: $6,160.00
PAIN AND SUFFERING:
I suffered significant pain, discomfort, and loss of enjoyment of life for four months following this collision. I was unable to [specific activities: play with my children, exercise, attend social events, sleep through the night]. I continue to experience intermittent neck stiffness and headaches, which my doctor states may persist for several more months.
TOTAL ECONOMIC DAMAGES: $18,310.00
GENERAL DAMAGES (pain and suffering): $36,000.00
TOTAL DEMAND: $54,310.00
Demand and deadline paragraph
Demand Closing
I am prepared to settle this claim for the total sum of $54,310.00, representing full compensation for all past and future damages arising from this collision. This offer is valid for 30 days from the date of this letter.
If you wish to discuss settlement or require additional documentation, please contact me at [phone] or [email] within 10 business days. If I do not receive a substantive response within 30 days, I will have no choice but to file a lawsuit to protect my rights.
I look forward to resolving this matter promptly and fairly.
Sincerely,
[Your Name]
Response snippet (for defendants/insurers)
Insurer Response Example
Re: Response to Demand Letter — [Claimant Name] v. [Your Insured]
Claim No.: [Claim Number]
Date of Loss: [Date]
Dear [Claimant or Claimant's Attorney]:
We acknowledge receipt of your demand letter dated [date] regarding the above-referenced motor vehicle accident. We are currently investigating the claim and reviewing the materials you provided.
Based on our preliminary investigation, we have identified the following issues that affect liability and damages in this matter:
1. COMPARATIVE NEGLIGENCE: Witness statements and physical evidence suggest that [claimant] may have contributed to the accident by [specific conduct]. Under [state] law, any recovery will be reduced by the claimant's percentage of fault.
2. PRE-EXISTING CONDITIONS: Medical records indicate that [claimant] was treated for similar complaints [timeframe] prior to this accident, raising questions about causation.
3. TREATMENT REASONABLENESS: The extensive chiropractic treatment appears excessive given the minor property damage to both vehicles.
We are prepared to discuss settlement once we complete our investigation. However, we believe your demand significantly overstates the value of this claim. We will provide a formal response and counteroffer within [timeframe].
Please direct all future correspondence to the undersigned.
Sincerely,
[Adjuster Name]
[Insurance Company]
Reminder: These snippets are examples only and should be adapted to your specific facts, jurisdiction, and legal advice. Do not copy-paste without understanding what each paragraph means and whether it applies to your situation.
Need help drafting a demand letter or response?
I draft, review, and negotiate car accident demand letters for injury victims and defendants. California focus.
I personally draft, sign, and negotiate car accident demand letters for injury victims and advise defendants on how to respond. My practice focuses on California law, but I also handle select cases in other states where I can provide strategic guidance on pre-litigation demands.
For injury victims (sending a demand)
If you were injured in a car accident and want me to handle your demand letter, here is how I typically work:
Step 1: Document review
You send me your police report, medical records and bills, photos, witness info, and any correspondence with the insurer. I review everything and identify gaps or issues that could hurt your claim.
Step 2: Strategy call
We discuss valuation, timing, and whether a demand letter is the right next step (vs waiting for more treatment, filing suit, or pursuing UM/UIM arbitration).
Step 3: Drafting and sending
I draft a detailed demand letter, organize all exhibits, and send it via certified mail and email to the insurer. I also set up a tracking system for deadlines and responses.
Step 4: Negotiation
I handle all back-and-forth with the adjuster, respond to requests for additional information, and negotiate toward a fair settlement. If the insurer stonewalls, I advise on litigation or arbitration next steps.
Fee structure: I typically handle demand letter work on a flat-fee or hybrid basis (flat fee for drafting + percentage or hourly for negotiation). I quote a fixed price after reviewing your documents. I do not advertise contingency-fee arrangements for demand-letter-only services, but I can refer you to trial counsel if your case needs full litigation representation.
For defendants or insurers (received a demand)
If you or your company received a car accident demand letter, I can advise on:
Liability evaluation: Is the claimant's version of the accident accurate? What does the evidence really show?
Damages analysis: Are the medical bills reasonable? Is there evidence of pre-existing conditions or treatment gaps?
Settlement strategy: When to make a counteroffer, when to deny, and when to prepare for litigation.
Coverage issues: Are you within policy limits? Do you have personal exposure? When to hire independent counsel?
California focus: Most of my demand letter practice is California-based. I am very familiar with California's comparative negligence rules, Prop 51 (joint-and-several liability), Government Claims Act deadlines for public entities, Howell/Sanchez rules on billed-vs-paid medical expenses, and typical settlement ranges in California counties. If your case is outside California, I can still provide strategic guidance but will coordinate with local counsel where necessary.
Frequently asked questions
I focus on pre-litigation work: demand letters, negotiation, and settlement. If your case requires filing a lawsuit, going through discovery, or taking a case to trial, I can refer you to trial counsel. Many cases settle after a strong demand letter, so litigation is not always necessary.
If the insurer does not respond within the deadline, I send a follow-up letter and escalate as needed. If they continue to stonewall, the next step is usually filing a lawsuit (which I would coordinate with trial counsel) or pursuing arbitration (for UM/UIM claims). Insurance companies typically respond to well-drafted demands, but some cases require the formal pressure of litigation.
Yes, on a case-by-case basis. Demand letters are often based on general negligence principles that are similar across states, and I can draft strategic demand letters for clients in other states. However, if your case involves state-specific statutes or procedures (like Florida's PIP system or New York's no-fault rules), I will coordinate with local counsel to ensure accuracy.
Typically 1–2 weeks from when I receive all your documents to when the demand is sent. The timeline depends on how organized your records are and whether I need to request additional documentation from your doctors or employer.
A demand letter is a pre-litigation negotiation tool. It is sent to the insurer or defendant before filing a lawsuit, and it is meant to facilitate settlement without court involvement. A complaint is the formal legal document that initiates a lawsuit in court. Most injury cases settle after a demand letter, so litigation is often not necessary.
Ready to discuss your car accident demand letter?
Contact me to schedule a review of your case. I personally handle all client communication and drafting.