Your Case · 5 min read · Published May 2025 · Last updated Jun 2026
What Is a Demand Letter in a Personal Injury Case?
Before a personal injury case goes to trial — or before a lawsuit is filed — the parties may exchange information and negotiate. A demand letter is a formal document commonly used in that process. Understanding what it is, what it may include, and how it can fit into a claim can help you prepare questions for your attorney and set realistic expectations.
What Is a Demand Letter?
A demand letter is a formal written document that an injured person or their attorney may send to the at-fault party or insurer. It can summarize the accident, injuries, treatment, damages, and requested settlement. It is not a lawsuit. A demand letter can begin or advance negotiations, but whether it is useful, and when to send it, depends on the facts and the applicable deadline.
What Does a Demand Letter Include?
A licensed attorney can review the facts, evidence, coverage, and applicable law for an individual matter. What belongs in a particular letter depends on the evidence, the claim, and the strategy chosen with counsel.
When Is a Demand Letter Sent?
Timing is fact-dependent. In some matters, a demand is prepared after the medical condition and treatment history are better understood; in others, a deadline, policy issue, or other circumstance may require earlier action. Maximum medical improvement (MMI) can be relevant when future needs are being evaluated, but it is not a universal prerequisite for every claim. An approaching legal deadline calls for prompt, individualized advice.
How Does the Insurance Company Respond?
An insurer may request additional information, make a counteroffer, dispute liability or damages, deny the claim, or agree to resolve some or all of it. Negotiation can involve multiple exchanges, and some matters do not settle. An attorney can assess a response against the record, the available coverage, and the options appropriate to the particular case.
What Happens If the Insurance Company Doesn't Respond?
A response date in a demand letter is often a negotiation tool, not an automatic court deadline. If an insurer does not respond or the parties do not agree, next steps may include follow-up, additional investigation, further negotiation, or evaluating whether litigation is appropriate. In California, many injury actions have a two-year limitations period under Code of Civil Procedure § 335.1, but exceptions and shorter government-claim deadlines can apply. A demand letter does not replace timely legal advice about the deadline.
Can I Write My Own Demand Letter?
You can write your own demand letter. Before doing so, consider whether you have enough information about liability, treatment, damages, available coverage, and the applicable deadline. The letter can affect negotiations, and omissions or broad statements may have consequences. A licensed attorney can review the facts, evidence, coverage, and applicable law for an individual matter.
Official Sources
These links provide the underlying statutory text for rules discussed in this guide. Application can depend on the facts and procedural posture.
Key Takeaways
- A demand letter is the formal start of settlement negotiations — not a lawsuit
- Timing and content depend on the facts, treatment, evidence, coverage, and deadline
- It may describe economic and non-economic losses with available support
- An insurer may request information, counter, deny, or negotiate
- A licensed attorney can review the facts, evidence, coverage, and applicable law for an individual matter.
- An attorney can help evaluate content and timing for the specific circumstances
Frequently Asked Questions
How long does it take to get a response to a demand letter?
The requested response date is set in the letter and can vary. Insurers may respond promptly, seek more information, or take longer depending on the claim. A requested response date does not replace the legal filing deadline, which can require separate attention.
What information should I prepare for attorney review?
No. A licensed attorney can review the facts, evidence, coverage, and applicable law for an individual matter. If the parties do not agree, the available options depend on the facts, the evidence, insurance coverage, and applicable deadlines. Litigation can be one option, but it is not automatic.
What is a policy limits demand?
A policy-limits demand seeks the full amount of identified liability coverage. It may be considered when claimed losses may exceed available coverage, but the legal and strategic consequences can be complex. An attorney can assess the policy language, evidence, timing, and governing law before recommending one.
How much should I demand in my letter?
There is no universal formula. A proposed demand can depend on liability evidence, treatment, documented losses, future needs, available coverage, and the governing law. A licensed attorney can review the facts, evidence, coverage, and applicable law for an individual matter.