What Is a Demand Letter?
If you’ve been injured, you may wonder why your lawyer sends out a demand letter. A demand letter is essentially a position statement. It outlines where your case stands in terms of liability, your legal claims, and the full extent of your injuries and damages.
As the name implies, it’s usually delivered in writing—either as a letter or an email. Sometimes lawyers also create video demand presentations. Regardless of format, the purpose is to clearly and comprehensively present your claims.
Demand letters are typically sent to insurance adjusters in car wrecks, trucking accidents, or similar cases. In situations like medical malpractice or aviation accidents, where lawsuits are often already filed, the letter may go directly to the opposing lawyer or the insurance company’s lawyer.
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How Long Does It Take to Get a Response?
Once the insurance company receives a demand letter, they usually take a few weeks to a month to respond. In some cases, it can take longer. Insurance companies may claim they need additional time to evaluate the case or request more information, such as missing medical records or unpaid medical bills.
When they do respond, their initial offer is almost always a lowball offer. Often, the first number they put forward is less than your medical bills. This is standard practice and something your lawyer will prepare you for.
When Is the Right Time to Send a Demand Letter?
The timing of a demand letter can make a big difference in how your case is handled. Send it too soon, and you risk settling before all the facts are known. Wait too long, and you may lose the chance to protect yourself financially. Here’s how timing can affect your settlement:
Settling Too Early
It’s possible to settle a case too early. For instance, in trucking accidents, companies sometimes push for a quick settlement or mediation. This urgency can be a red flag that they’re trying to hide something that would come out in litigation, such as a driver’s history of prior crashes or failed drug tests.
If you settle before those facts are uncovered, you may lose valuable leverage.
Settling Too Late
On the other hand, waiting too long can also hurt your case. Your lawyer evaluates several factors:
- Who is at fault
- The extent of your harms and damages
- The amount of your medical bills
- How much insurance coverage is available
Sometimes there simply isn’t enough coverage to compensate you fully. For example, if the at-fault driver carries only $50,000 in coverage but your future medical needs (like back surgery) exceed that, settling sooner may be financially smarter. By settling before medical bills climb too high, you may avoid situations where the insurance payout is swallowed entirely by health insurance liens.
In Tennessee, you can still pursue surgery after settling, and your health insurance will pay without requiring reimbursement from your settlement funds.
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What If You Don’t Want to Accept Their Best Offer?
If the insurance company’s “final” offer isn’t fair, your lawyer continues pushing the case forward in litigation. Many times, insurers increase their offers as trial approaches.
However, if a fair settlement can’t be reached, your case may proceed to trial. Statistically, only about 2–3% of personal injury cases go to trial, with the vast majority settling beforehand. Still, lawyers prepare for trial to secure the best possible outcome when settlement isn’t an option.
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CONSULTATIONS
NASHVILLE | FRANKLIN | MURFREESBORO | CLARKSVILLE
John
Griffith
Franklin Car Accident Lawyer
How Our Experienced Tennessee Injury Lawyers Can Help You
If you’ve been hurt in a crash, don’t go it alone. You deserve a legal team that will treat you like family and fight like hell on your behalf. At GriffithLaw, our experienced Injury Lawyers are ready to help you every step of the way.
???? Call (615) 823-8233 now or complete our online form for a free consultation. We’re available 24/7 and ready to take your call.
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