What Is a Personal Injury Settlement Demand?

One of the first steps in the personal injury claim process is submitting a personal injury settlement demand to the at-fault party’s insurance company. Our personal injury lawyers in New Iberia draft these letters every time we take a case.

We understand the importance of crafting a compelling settlement demand to maximize your chances of receiving fair compensation. Here’s what you need to know about personal injury settlement demands and what they mean for your case.

Understanding Settlement Demands

A settlement demand is a formal request for compensation that outlines your case and the damages you have suffered. The demand is typically sent to the at-fault party’s insurance company. It is a starting point for settlement negotiations. 

The purpose of the demand is to present the facts of your case, demonstrate the extent of your damages, and request a specific amount of compensation. The insurance company can accept the letter, refuse it, or offer a counteroffer.

Once both sides accept the settlement demand letter, the case has reached a settlement. If an agreement cannot be reached through settlement demands then the case will proceed to a trial so a judge and jury can decide.

Key Components of a Personal Injury Settlement Demand

A well-crafted settlement demand should include the following key components:

1. Introduction: Begin with a brief introduction that summarizes the purpose of the demand and the main points of your case.
2. Liability: Clearly explain why the at-fault party is liable for your injuries. This may include a description of the accident, witness statements, and supporting evidence, such as police reports or photographs.
3. Injuries and Treatment: Provide a detailed account of your injuries, including the diagnosis, treatment received, and any ongoing or future medical needs. Include copies of your medical records and bills to support your claims.
4. Damages: Outlines all the damages you have suffered, including economic damages (medical expenses, lost wages, property damage) and non-economic damages (pain and suffering, emotional distress, loss of enjoyment of life). Evidence is added to the letter to support these claims.
5. Settlement Demand: Conclude your demand with a specific settlement amount that you believe fairly compensates you for your injuries and damages. This amount should be based on a thorough evaluation of your case and the guidance of your personal injury attorney.

A skilled attorney knows how to craft settlement demands that effectively communicate the strength of your case and the extent of your damages to a reluctant insurer. We work closely with our clients to gather the necessary evidence and documentation to support their claims.

The Role of Your Personal Injury Attorney

Your personal injury attorney plays a crucial role in preparing your settlement demand and negotiating with the insurance company. Here are some ways your attorney can help:

1. Investigating Your Case: Your attorney will thoroughly investigate your case, gather evidence, and consult with experts to build a strong claim on your behalf.
2. Evaluating Your Damages: Your attorney will help you assess the full extent of your damages, including future medical needs and the long-term impact of your injuries on your life and earning capacity.
3. Drafting the Settlement Demand: Your attorney will use their knowledge and experience to craft a persuasive settlement demand that presents your case in the strongest possible light.
4. Negotiating with the Insurance Company: After submitting the settlement demand, your attorney will handle all communications with the insurance company and work to negotiate a fair settlement on your behalf.
5. Advising You on Settlement Offers: If the insurance company makes a settlement offer, your attorney will advise you on whether it is fair and reasonable, given the specifics of your case, and help you make an informed decision on whether to accept the offer.

At Laborde Earles Injury Lawyers, our attorneys have more than 250 combined years of experience handling personal injury cases. We know how to fight for the maximum compensation our clients deserve through personal injury settlement demands

Why Do Insurance Companies Reject Settlement Demands?

There are several reasons why an insurance company may reject a personal injury settlement demand:

1. Disputing Liability: The insurance company may argue that their policyholder was not at fault for the accident or that you were partially or fully responsible for your injuries.
2. Questioning the Extent of Your Injuries: The insurance company may challenge the severity of your injuries or argue that your injuries were pre-existing and not caused by the accident.
3. Challenging Your Damages: The insurance company may dispute the amount of damages you are claiming, such as the cost of your medical treatment or the extent of your lost wages.
4. Low Policy Limits: If the at-fault party has low insurance policy limits, the insurance company may not have sufficient funds to cover your damages, leading to a rejection of your demand.
5. Tactics to Delay or Minimize Payout: Insurance companies are businesses that aim to maximize their profits. They may reject a settlement demand as a tactic to delay payment or pressure you into accepting a lower settlement.

When an insurance company rejects a settlement demand, it doesn’t mean that your case is over. It simply means that further negotiation or legal action may be necessary to secure the compensation you deserve.

Conclusion

Personal injury settlement demand letters are formal legal instruments to demand that an insurer or a defendant owe you compensation. You don’t have to draft one yourself. Instead, let a personal injury attorney do it for you.

If you need personal injury assistance, contact Laborde Earles now for a free consultation. We’re here for you 24/7, ready to listen to your story and help you seek justice.