Demand letter
The written request that opens settlement talks on an injury claim, built from the records already in the file.
Collision Bureau is not a law firm and this is not legal or medical advice. It is general information about what happens after a crash. For advice on your situation, talk to an attorney licensed in your state or a treating clinician.
What it means
A demand letter is the document an attorney, or an unrepresented party, sends to the at-fault insurer to open settlement talks on an injury claim. It is not a filing with a court and it is not a required form. It is a letter, usually tens of pages long with exhibits attached, that lays out the facts of the crash, the records already produced, the losses the claim is being asked to cover, and a specific dollar amount the writer is asking for. The letter opens the conversation. It does not end it.
How it works
The letter is built from the file. Police report, photos, medical records, bills, pay stubs if lost income is part of the claim, and any subrogation notices already received. The writer walks through each piece in a sequence meant to be read, states a theory of liability tied to the police report and any witness statements, and arrives at a number supported by the records. On the other side, an adjuster evaluates the letter against the file the insurer has been building, which may have more or less of the same material. The two reads of the same evidence meet, and the back and forth starts there.
Why it comes up
It comes up at the point where treatment reaches a stable state and the records tell the story the claim is actually about. Sending a demand before that point tends to understate the injury, which is why most attorneys wait. It also comes up as the structural piece between a claim that resolves without litigation and one that does not. If the letter produces a response within range, the file moves toward resolution. If it does not, the next step is filing, and the statute of limitations for the governing state is the deadline that sets the clock. The letter is also the first document the file produces that both sides read closely, which is why attorneys treat the drafting as serious work rather than a formality.
What it is not
A demand letter is not a lawsuit. It is not filed with a court, it does not start the clock on any procedural rule, and it does not obligate the recipient to answer by any particular date in most situations. It is also not a final number. The amount stated is an opening, chosen deliberately with the records in view and with room for the response. And it is not something to send without reading. The letter is going into a file that will be read by multiple people on the other side, and the position it takes is the position every later conversation returns to.
Questions people actually ask
01When does a demand letter usually get sent?
After treatment has reached a stable point and the records tell the story the claim is actually about. Sending a letter before that point tends to understate what the injury turned out to be, which is why attorneys usually wait until the medical picture is clear. The timing in your situation depends on your condition and your state's deadlines, and an attorney licensed in your state can lay out the sequence that fits your file.
02Does the insurer have to respond?
The letter does not create a legal obligation to respond by any particular date in most situations, though some state statutes impose timelines on specific kinds of claims. In practice the insurer evaluates the file, writes an opening response, and the conversation begins. How close that first response lands to the demand depends on the records, the policy limits, and the facts of the crash. What any specific response means for your file is attorney territory.
03What if the demand is ignored?
Silence is a position in itself, and the claim's next step moves from writing to filing. The statute of limitations in the governing state fixes how long the claim has before the courthouse door closes, which is why unresolved letters do not sit forever. The decision about whether and when to file is one of the main reasons an attorney is involved in the first place. The letter is one step. The deadline behind it is the real clock.