If you are injured in a car accident or similar manner in which you’ll be attempting to collect compensation from another party’s insurance provider, one of the first things your lawyer will do after learning all the facts of the case is drafting a demand letter. A demand letter is a detailed correspondence that explains what damages you believe you are entitled to receive and why the named party and the insurance company is liable for these damages. This demand letter gets the ball rolling on your claim and forces the insurance company to take action on the case.
But what types of response could you get after issuing a demand letter, and what are your options based on the response you receive from the insurance company. We explore what you can expect in response to your personal injury demand letter in today’s blog.
Typical Demand Letter Responses
Before we dig into the likely responses to your demand letter, we need to express how important it is that you have a lawyer draft this letter for you. A lawyer knows exactly how to position the letter, your demands and the proof so that the insurance company realizes that you have a clear and convincing case. Even if you have a strong case, if you poorly position your letter or undersell the worth of your claim, you’re going to get worked over by the insurance company. Let a lawyer draft this letter so that everything is spelled out clear as day to the insurance company.
Assuming the letter is clear and convincing and states a direct intent of how you will proceed if the insurance company does not respond to your demand letter, here’s a look at some of the responses you can expect to receive:
Denial – It’s possible that the insurance company will flat out deny your claim. The letter will likely explain why the insurance company believes that they are not on the hook for damages, and it may dive into the specifics of your policy. Denials are more common than many people realize, and it is not the end of your claim. Your lawyer can help you contest a denial or move forward with a lawsuit in spite of the denial.
Nothing – It’s possible that the insurance company will ignore or choose not to act after receiving your demand letter. This is why it’s important to state your intentions if they do not respond in a timely manner, and you and your lawyer should follow through on your intentions if the insurance company fails to respond to your demand letter.
Request For Additional Evidence – You may also get a letter informing you that the insurance company would like additional details or evidence about your claim before they proceed. Oftentimes this is a good sign that the insurance company takes your claim somewhat seriously, but make sure you consult with your lawyer before you just send off additional information pertaining to your case. In other instances, the insurance company may be asking for an independent medical review, and you’ll need to follow through with this assessment before they’ll make a ruling on your demand letter. Always consult with your attorney if additional information is requested.
Counteroffer – The insurance company may see that you make a good case in your demand letter and put forth a settlement offer that is less than your original demand amount. They may or may not explain why they came to the valuation they did. As you can imagine, it’s crucial that you talk with your lawyer before you agree to, decline or counter this offer.
Acceptance – In rare instances, the insurance company may see that they are clearly liable and agree to your assessment of the damages, in which case they will issue a response accepting the terms of your demand letter. Even if the insurance company feels this way, it’s much more likely that they’ll try to counter with a lower amount instead of just accepting your demand amount, but it’s possible they accept your demand.
Let us help you navigate the process of developing a demand letter and then acting on a response from the insurance company. We’ve helped countless clients get the compensation they deserve, and we can do the same for you. For more information, or for help with a different injury issue, reach out to the team at Margolis Law Firm today at (952) 230-2700.
- Never Do These Five Things After A Work Injury - September 11, 2024
- How Is Wage Loss Calculated For Self-Employed Workers In Minnesota? - September 6, 2024
- What You Need To Prove To Win Your Minnesota Injury Case - August 27, 2024