November 2, 2021 0 Comments Finance

Tips on Writing an Insurance Demand Letter

They say prevention is better than the cure, but there is nothing anyone can do when an accident occurs. Whether you are in the wrong or not, there are profound financial and health implications when you are involved in a car accident.

Most motor vehicle accidents are insured, and that’s why you need to understand how to write a demand letter so that you can get compensated for the losses and injuries sustained.

What Is a Demand Letter and What Should You Consider Before Drafting One?

A demand letter is a factual account to the insurance company on why you need compensation. It should contain documentation of all injuries sustained during the accident, no matter how small, the losses incurred, i.e., wages and property damage, and in case of any emotional distress caused directly as a result of the accident.

You will need all the information documented before the insurance company can start the process of compensation.

No one ever wants to admit they are at fault when it comes to accidents; therefore, before writing that letter, there are a few questions you must ask yourself:

  • Who was really at fault?
  • Was there any property damage, and how much would the repairs or replacement cost?
  • In case of injuries, how minor or significant are they? Do they pose long-term implications to you?
  • How much did the treatment cost?
  • Did the injuries sustained in the accident cause any lifestyle changes? If so, explain
  • Did the accident affect your ability to work? If so, explain

These are some of the questions the insurance company will need answers to, and you must be ready with relevant information. No matter how emotional you may be, avoid lies and profanity in your letter. These are sure ways to get your claims denied. 

What Next After Sending the Demand Letter?

The process of waiting after sending an insurance demand letter can be daunting. Still, several factors will determine the length of time you have to wait until you receive your compensation:

  • Your insurance adjuster might have a significant workload, and it is taking some time for them to review your claim. It’s therefore not uncommon for there to be delays, and this should be communicated to you by your insurance company.
  • Depending on the amount of evidence and documentation you provide, the insurance company may request additional material before paying you. Hence, this might take some time, hence the need to write an airtight demand letter from the word go.
  • If you claim a large amount of money, no matter how fair it may seem, it might take some time for the insurance company to approve the payment.
  • If there is contention as to who the liable party is, the process may drag while dealing with litigation. The insurance company might be inclined to shift blame to the other party to protect their policyholder.

 It might seem appropriate to rush the process to end this traumatic ordeal, but faster isn’t always better. The insurance companies want the process to end as quickly as possible and might offer low settlements immediately after the accident.

 This move shuts the door for further compensation when the aggrieved party discovers they got the short end of the stick. Your lawyer might also take the first offer they receive to reduce their workload, which is also unfair to the aggrieved.

Why You Will Need A Lawyer to File a Demand Claim

If you are not sure how to go about the process, you should get yourself a lawyer specializing in insurance claims. They will advise you on the process, start with writing the demand letter, and follow up with the insurance company and ensure that you get fair compensation.