A demand letter is a formal written document sent to the person or company that injured you, requesting that they pay a specific amount of money to settle your claim without going to court. This letter typically outlines what happened in the accident, explains why the recipient is legally responsible for your injuries, details your medical treatment and other losses, and states exactly how much compensation you're seeking. Think of it as your opportunity to present your case and make a settlement offer before filing an expensive and time-consuming lawsuit.
The demand letter serves several important purposes: it officially notifies the other party of your claim, demonstrates that you're serious about pursuing compensation, and often triggers settlement negotiations that can resolve your case faster and cheaper than going to trial. Many personal injury cases are settled after the insurance company receives a well-written demand letter that clearly shows their insured was at fault and that you have legitimate damages. If they reject your demand or make an unreasonably low counteroffer, you can then decide whether to negotiate further or file a lawsuit to force them to pay fair compensation.
