Writing A Demand Letter: Auto Insurance Claims

A demand letter is a crucial step towards settling a car accident claim and receiving compensation for your losses. It is a formal, written document stating what compensation you want to receive and why. This letter should be sent to the at-fault party's insurance company and should include details such as the date of the accident, policy number, parties involved, and a detailed breakdown of economic and non-economic damages. It is important to provide supporting documentation, such as police reports, witness statements, and medical records, to strengthen your claim. The goal is to present your case clearly and concisely, avoiding emotional language or threats, to reach a timely settlement without the need for legal action.

Organise your expenses

Organising your expenses is a crucial step in writing a demand letter to an auto insurance company. This involves gathering all your receipts and out-of-pocket expenses related to the accident, which can be time-consuming and challenging if not done promptly. Here are some detailed instructions to help you organise your expenses effectively:

• Medical Expenses: Keep track of all medical bills and receipts related to your treatment. This includes costs for ambulance services, hospital stays, doctor visits, medical treatments, rehabilitation services, pharmaceuticals, and any other medical services you required due to your injuries.
• Property Damage: Document the costs to repair or replace your vehicle and any other property damaged in the accident, such as clothing, jewellery, or personal items that were in the car.
• Lost Wages: Calculate the immediate loss of income due to your inability to work during your recovery. Also, consider any long-term or permanent disabilities that may impact your earning capacity in the future.
• Pain and Suffering: While these damages are more subjective, you can include a variety of symptoms such as emotional distress, mental anguish, anxiety, depression, and loss of quality of life.
• Out-of-Pocket Expenses: Keep a close eye on these, as they can quickly add up. Examples include towing services, storage costs for your vehicle, car rental, other transportation costs (public transportation fares, tolls, etc.), travel expenses for long-distance medical treatment, childcare costs, and personal care expenses if you require in-home care.
• Incidental Expenses: These are costs related to seeking medical treatment but not directly part of your treatment plan. This includes rental car expenses, mileage reimbursement (as per IRS rates), parking fees, and costs of using driver services like Uber or Lyft.

Remember to save all your receipts and documentation related to these expenses. If you cannot find a receipt, contact the relevant service provider to request a copy of your records or bills. It is also helpful to keep a list or spreadsheet of your expenses to ensure you are accurately tracking every item.

Establish the facts

To establish the facts of your case, it is important to begin your demand letter by explaining the circumstances of the accident. This includes providing the date, time, and location of the incident, as well as any relevant details such as street names, traffic signals, and your direction of travel. You may also include information from the crash report, such as the at-fault driver's details and any citations issued. Witness statements can also be valuable in supporting your account of the events.

It is recommended to write as if the reader knows nothing about the accident. This way, you can ensure that all relevant facts are clearly communicated. For example, you could explain that you were waiting at a complete stop when another vehicle suddenly rear-ended you. Alternatively, you may have been driving in your lane when someone pulled out in front of you. By providing a clear and detailed description, you can effectively establish the facts of the accident.

In addition to the circumstances of the collision, it is also crucial to outline any relevant details regarding your injuries and the impact on your life. This includes describing any physical pain or emotional trauma you experienced, both at the scene and in the aftermath of the accident. Remember to be as detailed as possible when explaining your injuries and the subsequent impact on your daily life and overall well-being.

Furthermore, it is essential to provide an overview of your road to recovery. This entails explaining the medical treatment you received, including the dates, locations, and specific treatments administered. By presenting a comprehensive picture of your recovery process, you can effectively demonstrate the severity of your injuries and the steps taken to address them.

In summary, establishing the facts in your demand letter involves providing a detailed account of the accident, your injuries, and your subsequent recovery process. By including all relevant information and supporting documentation, you can effectively present the facts of your case to the insurance company.

Share your perspective

Sharing your perspective is an important part of a demand letter. It is your chance to explain what happened from your point of view and outline the pain and suffering you experienced as a result of the accident.

Begin by describing what you remember from the incident, including any details about the pain you felt at the scene and immediately following the collision. Outline the severity and location of your pain. For example, if you hit your head on the window or your knee pushed into the dashboard, include this information.

It is also important to explain how the injury has impacted your life and how it makes you feel. You can use a pain journal to outline any daily restrictions and emotional trauma you are experiencing. Be sure to mention any loss of consortium and overall lower quality of life.

Remember, only you know the amount of pain you were in, so clearly spell out to the insurance adjuster exactly when you first started experiencing pain and in what areas of the body. This will help them understand the extent of your injuries and how they have affected your life.

By sharing your perspective, you can provide valuable information that may not be included in medical records or other documentation. This will help the insurance company understand the full extent of the impact the accident has had on your life and make a more informed decision about your claim.

Detail your road to recovery

When discussing your road to recovery in a demand letter to an auto insurance company, it's important to provide a comprehensive overview of your medical treatment and recovery process. Here are 4-6 paragraphs to help you detail your road to recovery effectively:

Paragraph 1: Begin by explaining when and where you sought medical attention after the accident. This could be at the scene of the accident if paramedics provided treatment or if you were transported to the emergency room. It's crucial to mention the date and location of your initial medical care.

Paragraph 2: Provide details about the specific treatments and procedures you received. For example, did you undergo X-rays, CT scans, MRI imaging, surgery, or physical therapy? Explain the nature and extent of your medical care, as this showcases the severity of your injuries.

Paragraph 3: Discuss the doctors, specialists, or therapists who treated you. Mention their qualifications or specialisations to emphasise the validity and necessity of your treatment plan. For instance, "I was treated by Dr. Smith, a renowned orthopaedic surgeon, who performed surgery to repair my fractured leg."

Paragraph 4: Describe the duration of your treatment and any ongoing or future medical needs. For example, "I underwent three months of physical therapy to regain mobility in my injured arm, and I am expected to continue with periodic therapy sessions for the next six months." This information highlights the long-term impact of your injuries.

Paragraph 5: If applicable, mention any medications prescribed to manage pain or other symptoms. This adds another layer of detail to your recovery journey and underscores the discomfort and challenges you faced.

Paragraph 6: (Optional) If your injuries required lifestyle adjustments or impacted your ability to perform daily tasks, include this information. For example, "Due to my limited mobility during recovery, I required assistance with basic activities such as bathing and dressing, and I was unable to drive for several months."

Remember, the goal is to paint a clear picture of your medical journey and the challenges you faced. By providing specific details and a chronological account of your road to recovery, you can effectively convey the extent of your injuries and the impact on your life.

Calculate a reasonable settlement amount

When calculating a reasonable settlement amount, it's important to consider both your economic and non-economic losses. Economic losses, also known as "special damages", include medical bills, property damage, and lost income. Non-economic losses, or "general damages", include pain and suffering, emotional distress, and loss of consortium.

To calculate your economic losses, gather all your receipts and out-of-pocket expenses related to the accident, such as medical bills, prescriptions, repair bills, and lost earnings. Calculate the total sum of these expenses.

To calculate your non-economic losses, you can use the "multiplier method". This involves multiplying your total medical expenses by a factor, typically between 1.5 and 5, to estimate your general damages. The more serious, long-lasting, and painful your injuries are, the higher the multiplier should be.

Add your economic and non-economic losses together to get a reasonable settlement amount. This amount should be higher than what you think your claim is worth to leave room for negotiation with the insurance adjuster. However, be realistic in your settlement figure to ensure the adjuster takes your demand seriously.

It's worth noting that there is no universal settlement formula, and the calculation may vary depending on specific circumstances. Consulting with a lawyer or using an online settlement calculator can help you determine a more accurate settlement amount.

Frequently asked questions