Fair Claims Settlement Practices Regulations establish rules for settlements in insurance claims, but they provide only limited protection to victims during the settlement negotiation process. Insurers routinely offer low amounts of compensation to victims or try to pressure victims to accept less money than would be reasonable given the extent of their losses. A car accident lawyer deals with insurers on behalf of victims, using legal and negotiating skills to reach a favorable settlement for those hurt in accidents. A demand letter is one of the tools often used during the negotiation process.
What is a Demand Letter?
The attorney representing an auto accident victim will send a demand letter to the at-fault driver’s insurance carrier. The letter will contain identifying information including the name of the victim, the name of the at-fault driver, the claim number, and the date the crash occurred. The letter will also provide the details about the accident, explaining when it occurred and how the at-fault driver’s actions caused the crash.
Lastly, the letter will provide information about the impact the accident has had on the victim. It will specify the extent of physical injuries resulting from the crash including medical treatments received, and all medically-confirmed diagnoses. The demand letter will also offer information on the physical and emotional pain the crash victim is experiencing, and how the car accident has affected the quality of life of the injured victim.
Demand letters are sent once the extent of injuries are apparent, and are comprehensive in describing the tremendous loss the crash has caused. It will also specify the amount of compensation that would be appropriate to cover economic and non-financial losses for the victim. Demand letters are customarily aggressive in the amount of money requested for compensation.
How a Demand Letter Helps in Insurance Claims
When an insurance claim is made with the at-fault driver’s insurance carrier, the insurer should pay full and fair compensation for economic and non-financial losses incurred due to the crash. Some losses, like medical bills incurred to-date, can be calculated exactly. Others are more subjective, like future loss of earning power, future medical bills, and the value of pain or emotional distress.
A demand letter lets the insurer know the full extent of losses the insurance company should be responsible for covering and it lets the insurer know what the victim believes is reasonable compensation for damages. The demand letter can create a jumping off point for negotiations, so a settlement agreement may hopefully be reached.
Why A Long Beach Car Accident Lawyer Should Write a Demand Letter
Your Injuries are Personal to Me
Demand letters are a key component in getting a good settlement from an insurance company. Properly done, demand letters can help cases settle rather than going to trial. I exclusively represent personal injury victims and have extensive experience negotiating with insurance companies and getting my clients the maximum compensation they deserve.
Call the Law Office of Michael D. Waks at 888-394-1174 or use the convenient online contact form to schedule a free consultation to learn how I can help you if you’ve suffered a work injury.
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