What's a Demand Letter? How Do You Write One?

Most people think that filing a lawsuit is the norm after a motor vehicle accident.
In reality, a lawsuit only happens after negotiations have broken down and it’s clear that the two sides are so far apart that there’s no way to reconcile them.
Long before you hit that point, you’ll need to send a demand letter to the person responsible for the accident — or, rather, to his or her insurance company.
The demand letter is what tells the other side, in theory, what it would take for you to agree to settle out of court and close out the case.
An effective demand letter should be firm, not threatening. There’s no reason, for example, to threaten to file a lawsuit if you aren’t happy with their response — the insurance company is already aware of the direction things are headed.
It also needs to be reasonable, fact-based and fairly emotionless. You don’t want to seem either entirely unyielding nor desperate to settle.
Many people hire attorneys to write their demand letters after a motor vehicle accident because attorneys know exactly how to word them, apply the right amount of pressure and figure out how much the insurance company will likely pay.
If you’re doing it yourself, you need to follow some basic steps:
Finally, give the adjuster a deadline to respond with either an agreement or a counteroffer.
After that, it’s just a matter of negotiating until you hit a figure on which you both agree.
Source: FindLaw, “Ten Tips for Writing an Effective Demand Letter,” accessed Dec. 15, 2017