What Happens After My Lawyer Sends a Demand Letter?
Negotiations usually start once your personal injury lawyer sends a demand letter to the insurance company. If the insurer agrees to the terms, the lawyer can settle the case and secure compensation for you.
However, insurance companies often try to reduce payouts. They may investigate and collect evidence to argue that you are partially or fully responsible for your injury.
Sometimes, the insurance company may acknowledge their policyholder's fault but offer less compensation than you deserve. They hope you'll accept a low settlement.
A personal injury lawyer can help you make informed decisions every step of your case, avoid such tactics, and aim for the maximum possible settlement. Keep in mind the amount in the demand letter is not guaranteed. If a settlement is reached, it often involves negotiations between your lawyer and the insurer.
What Is a Demand Letter?
A demand letter explains your case to the insurance company in a personal injury claim. It specifies the amount of compensation you're seeking and includes all the necessary details about your case, such as:
- Your injuries and how they affect your daily life
- The total compensation requested
- The date, time, and location of the accident
- A summary of the events leading to the incident
- Why the policyholder is responsible for your injuries
- Details of your medical treatment and recovery
- Costs you've incurred, including future expenses if ongoing care is needed
Typically, the demand letter is sent after treatment is completed, though it can include estimated costs for future care if necessary.
In addition to the letter, your attorney may provide evidence to support your claim, such as:
- Medical records and bills
- Photos from the accident scene
- Security camera footage
- Police or incident reports
- Receipts for expenses
Responding to a Demand Letter
The insurance company will take time to review the demand letter. During this period, they may conduct their investigation and gather evidence.
Three possible outcomes can follow:
- Demand Accepted: The insurance company agrees to the terms and pays the requested amount.
- Counteroffer and Negotiations: The insurer proposes a lower amount, and your lawyer negotiates.
- Claim Denied: If the insurer denies the claim, your attorney may file a lawsuit for compensation.
How Long After the Demand Letter Can I Expect a Settlement?
Your lawyer will typically request a response from the insurance company within 30 to 45 days. However, some companies may delay or fail to respond.
The timeline for settling a claim depends on factors like:
- Size of the Insurance Company: Larger companies often process claims faster than smaller ones.
- Regular Follow-Ups: A proactive lawyer can keep the process moving with consistent communication.
- Claim Complexity: Larger claims with extensive medical records and evidence may take longer to review.
Settlements usually take several months, and the process can extend further if the case goes to court.
Contact an Experienced Personal Injury Attorney Today
Since 2013, Clinton O. Middleton has been helping accident victims get the justice they deserve. Our skilled team focuses on giving personal attention and getting great client results.
Call us at 703-777-9630 for a free consultation if someone else's actions injured you. We'll review your case and discuss your legal options.
