A demand letter is a formal request for compensation sent to the at-fault party’s insurance company in a personal injury case. It outlines the accident details, injuries, medical expenses, lost wages, pain and suffering, and a specific dollar amount demanded for settlement. If negotiations fail, the next step may be filing a personal injury lawsuit under California law.
A well-crafted demand letter can help secure a fair settlement before litigation. If negotiations fail, our experienced California personal injury lawyers can take further legal action to protect your rights.
The purpose of a demand letter in a personal injury case
A demand letter serves several key functions in a personal injury claim:
- Initiates the settlement process – It formally notifies the at-fault party and their insurance company that you seek compensation.
- Presents your case clearly – It summarizes how the accident occurred, who is responsible, and the damages you have suffered.
- Provides evidence of liability – It includes medical records, bills, lost wage documentation, and other proof of damages.
- Encourages settlement – A strong demand letter can persuade the insurance company to settle out of court, avoiding a lengthy trial.
California law does not require a demand letter before filing a lawsuit, but it is a common and effective step in personal injury claims.
What should be included in a demand letter?
A well-prepared demand letter is essential in a California personal injury case, outlining the details of the accident, injuries, and financial losses while demanding fair compensation. It should include:
1. A clear statement of the incident
A detailed account of the accident, including date, time, location, and fault determination.
Example:
“On June 5, 2024, at approximately 3:30 p.m., I was lawfully crossing Main Street in San Luis Obispo at a marked crosswalk when your insured, John Doe, ran a red light and struck me with his vehicle.”
2. Description of injuries and medical treatment
Documentation of hospital visits, surgeries, rehabilitation, and future medical needs.
Example:
“As a result of the accident, I suffered a fractured femur, requiring emergency surgery and extensive physical therapy. My total medical expenses to date amount to $35,000, with additional treatment expected.”
3. Lost wages and financial losses
Compensation for missed work, reduced earning capacity, and career limitations caused by the injury.
Example:
“Due to my injuries, I was unable to return to work for eight weeks, resulting in lost wages of $12,500. Furthermore, my ability to perform manual labor has been permanently affected.”
4. Pain and suffering
In California, personal injury victims can recover non-economic damages for:
- Physical pain and discomfort.
- Emotional distress, anxiety, or PTSD.
- Loss of enjoyment of life.
These damages are harder to quantify, but an experienced attorney can justify them with medical reports and expert testimony.
5. The demand for compensation
A total amount requested based on medical expenses, lost wages, and suffering calculations.
Example:
“Based on my medical expenses, lost wages, and pain and suffering, I demand a settlement of $150,000 to resolve this matter.”
6. Deadline for response
A typical 30-day deadline for the insurance company to respond, signaling intent to pursue legal action if necessary.
Example:
“Please respond to this demand no later than May 15, 2025. If no resolution is reached, I will proceed with filing a personal injury lawsuit.”
What If the insurance company refuses to settle?
If the insurance company ignores your demand, denies liability, or offers an unfairly low settlement, your next step may be filing a personal injury lawsuit in civil court. Under California Code of Civil Procedure Section 335.1, you have two years from the date of injury to file a lawsuit.
At Ernst Law Group, we are prepared to fight for you—whether through settlement negotiations or in court.
Contact Ernst Law Group for a free consultation
If you have been injured in an accident, a well-crafted demand letter can be a critical first step toward obtaining full and fair compensation. At Ernst Law Group, we have the experience and legal knowledge to:
- Draft compelling demand letters.
- Negotiate strong settlements with insurance companies.
- Take your case to trial if necessary.
Contact us online or call (805) 541-0300 for a free consultation.
