Baxley Maniscalco Attorneys At Law
In situations where your injuries are severe, and you suspect the insurance coverage is low, it can make sense to write your own demand letter to avoid sharing your recovery with an attorney.
Contrary to what you might think, it is not the best idea to write your own demand when your injuries are relatively minor or not permanent.
Why? In our experience, for “small” or “moderate” injuries (is any injury really small to the person experiencing it?), having a lawyer involved in the demand process typically more than triples the average amount of the settlement.
So, Who Should Write Their Own Demand Letters?
Our recommendation is that you should only write your own demand letters if two things are true:
- Your injuries are severe and lasting; and
- You were injured by an individual who doesn't appear to have enough coverage or deep pockets.
Why? Because in these cases your injuries are likely to be more severe and your medical bills more costly than the available insurance will possibly cover. If you can be fully compensated within the limits of the available insurance coverage, then it pays to have a lawyer. If you can’t, then it’s worth a try to make a demand on your own first.
OK, you’re ready to write your demand. But take a moment and make sure number two above sank in fully. If you were hit by a commercial truck driver, a UPS or FedEx delivery driver, or even a catering van, the insurance coverage is likely vast.
If the driver who hit you has a big corporation behind them, or even if one may be in the shadows somewhere (as an employer of the driver), we’d recommend an attorney. Making sure you’ve identified all the possible insurance policies that may cover your claim can be a huge task in and of itself.
Usually, you’ll need a lawyer who is experienced at beating the bushes for hidden insurance coverage to make sure you truly get all the money that is available to you.
But assuming that you’ve assessed fully and decided to write your own demand letter to start, here’s how we recommend going about it.
Step 1
Address the letter to the insurance company and the individual defendant.
Example: Dear State Farm Mutual Automobile Insurance Company and Mr. John Dutton.
Step 2
Using simple sentences, describe your injuries.
Example: I am hurt. I am still not better. I have problems that I never had before in my life. I have had X-rays and an MRI. I have migraines nearly every day now. I have seen a neurologist. My back hurts every day and I have trouble sleeping at night. I work as a cosmetologist and the pain is making it difficult to do my job. I missed three days of work after the incident. I am a mother and this is affecting my everyday life.
Attached are photos, the police report, and medical records.
Average Personal Injury Settlement
The average personal injury settlement typically ranges from $3,000 to $75,000. The likelihood of a payout of some amount is 70%.
About 4% of cases go to trial. Settlements include money for medical bills, lost wages for time off work, mileage to and from medical appointments, pain and suffering and loss of the ability to enjoy life.
Step 3
Make clear that you don't want to sue, but you know the law.
Example: I had hoped that I would be better by now, but I am not. I do not want to have to file a lawsuit. I have been an insurance policyholder for a long time and I know that often, the policy limits are not enough to pay in full when a person is injured by another person's negligence. I know in cases like these, the injured person's recovery would be limited to the policy limits, unless the person decided to pursue the case beyond the limits of the available coverage.
Step 4
Mention that you aren’t trying to hurt the defendant, you just want your damages to be covered by insurance. Talk about your concerns.
Example: I am not the type of person who wants to take the personal assets or wealth of the man who hurt me. I really hope that the insurance limits are enough to adequately compensate me. I would like for us all to be able to move on with our lives as best we can. But I am afraid—based on how much I am still hurting and what I have gone through so far—that this is not going to be the case.
That’s why I’m writing this letter. I really don’t want to have to hire a lawyer. I don’t want to have to go rounds with State Farm or any other insurance companies that provide excess or umbrella coverage for Mr. Dutton. I just want to wrap this up.
Step 5
Make a demand for the policy limits.
Example: Right now I am willing to settle everything and sign a release, without getting a lawyer involved, in exchange for payment of the limits of any and all policies of insurance there are. If the limits are $100,000, I’ll settle for that. If they are only the minimum Alabama policy limits of $25,000, I’ll settle for that. If there is only one insurance policy, then everything will be done and over with if State Farm tenders the limits of that policy. If there are two or more policies, then I need to know what the other policies are. I would be willing to settle the case quickly for the total amount of money available under all the insurance policies.
Average Length of Time to Resolve a Personal Injury Case
On average, it takes 11.4 months to resolve an injury claim arising from a car crash. It pays to negotiate instead of taking the first offer. Claims that resolve within the first month usually receive nothing for their injuries. The average claimant who accepts the first offer from insurance resolves their claim in about seven months. Those who hold out for a better deal take about eleven months to reach resolution but also end up settling for an average of $31,000 more than those who accepted the first offer.
Step 6
If anyone else in your family has a possible claim, offer to release it.
Example: My husband, who was in the car with me, was not injured, and he will also sign a release waiving any claim he has arising out of this incident. This will all be over with, and I will deal with the fallout from my injuries for however many years I’m going to suffer from them. Mr. Dutton will be finished with all of this and can move on with his life.
Step 7
Give a deadline and set up the bad faith.
Attach all of your supporting documents and photos. If you were out of work for any period of time after the accident, or missed hours to go to doctor’s appointments, include documentation showing your lost wages and a letter from your employer.
Example: I will accept the policy limits if they are tendered within the next thirty days, by November 14, 20XX. If State Farm chooses not to pay the limits in this timeframe, I will move forward with my claim and will not limit the compensation I am entitled to under the law to what the limits of the insurance are. I have enclosed the medical records and medical bills that document all of the treatment I have received so far. I have also attached photos of the vehicle, the accident scene, and my bruising after the collision. You have all of my records related to this incident. I don’t think there can be any question that your insured is at fault for negligently hurting me and causing this damage I am suffering.
Step 8
Request a copy of the declarations page.
Example: Please provide me with a copy of the declarations page of each policy of insurance that provides coverage for this accident. Please also let me know whether Mr. Dutton was driving his vehicle in the scope of his employment or was running an errand for anyone at the time he hit me.
Step 9
Warn them what will happen if they choose not to pay your demand.
Example: Please be aware that any response by you offering less than the policy limits will be a rejection of this time-limited settlement opportunity. If that happens, I will hire a lawyer and will pursue full compensation against everyone legally responsible for my injuries and damages.
Step 10
Sign and send it.
You, the injured person, should sign the demand letter. Then send it in three ways:
- By Mail
- By Fax
- By E-Mail
Send it directly to the insurance adjuster and include the claim number at the top of the letter. Don’t forget to attach all of your supporting documents
You’ve Sent the Demand Letter. Now What?
Now you wait. Do nothing. Don’t respond to calls or emails from the adjuster or a lawyer. Do not give any statements about the facts.
Don’t agree to go to mediation. You’ve made a reasonable demand, you’ve backed it up with records, and there’s nothing else you need to do. If the insurance company accepts your demand, congratulations! This part of your difficulties is over. You can accept the settlement for policy limits, sign the waiver, and move forward.
If the insurance company chooses not to pay the policy limits, they may try:
- Ignoring the deadline
- Offering an amount less than policy limits
In either of these scenarios, now comes the time to get a lawyer. You’ve tried to deal with the insurance company without the red tape, and they’ve refused to play ball. The unfortunate truth is that you’re going to need to sue to be treated fairly from this point forward. We encourage you not to feel defeated or to give up simply because they are making this hard.
There are many lawyers like us out there who will fight to make them pay every penny you are owed for your injuries and damages. When you are selecting your lawyer, ask them about their prior work on bad faith cases. This will be a good indication of whether they have experience opening policies of insurance and litigating cases beyond policy limits.
The worst thing you can do for yourself, your family and other injured people like you is to let the insurance companies get away with paying you less than you deserve.
“Let justice roll down like water, and righteousness like a river that never runs dry.”
— Amos 5:24