Legal Disclaimer: This article provides general information for educational purposes only and does not constitute legal advice. Consult a licensed attorney for advice specific to your situation.
You've been in a car accident that wasn't your fault. Maybe you're dealing with the at-fault driver's insurance, or maybe they don't have insurance at all. Either way, you're owed money — for car repairs, medical bills, lost wages, or all three.
A demand letter is how you formally request that compensation. Here's everything you need to know about writing one that gets results.
In This Guide
When to Send a Demand Letter After an Accident
Timing matters. Send your demand letter:
After You Know Your Full Damages
Don't send a demand letter before you know the total cost of your damages. This means:
- You've finished medical treatment (or have a clear prognosis)
- You've gotten repair estimates or your car has been declared totaled
- You know how much work you've missed
Sending too early locks you into a number before you know the real cost.
Before the Statute of Limitations
Every state has a deadline for filing personal injury and property damage claims:
| State | Personal Injury | Property Damage |
|---|---|---|
| California | 2 years | 3 years |
| Texas | 2 years | 2 years |
| Florida | 4 years | 4 years |
| New York | 3 years | 3 years |
| Illinois | 2 years | 5 years |
Send your demand letter at least 60-90 days before the statute of limitations expires to leave time for negotiation.
After Insurance Has Had Time to Investigate
If you're dealing with insurance, give them 2-4 weeks to investigate the claim before sending a demand letter. A letter sent Day 1 often gets ignored.
What to Include in Your Car Accident Demand Letter
1. Clear Identification of the Accident
- Date, time, and location of the accident
- Vehicles involved (make, model, year, license plates)
- Police report number (if applicable)
- Claim number (if dealing with insurance)
2. Statement of Facts
A clear, chronological account of what happened:
- Where you were going and what you were doing
- What the other driver did that caused the accident
- The impact and immediate aftermath
- Any witnesses
Tip: Stick to facts. "The other driver ran a red light" is better than "The other driver was being reckless and careless."
3. Liability Statement
Explain why the other party is at fault:
- Traffic laws violated (cite your state's vehicle code if possible)
- Police report findings
- Witness statements supporting your account
4. Description of Injuries and Treatment
- Every injury, from major to minor
- All medical treatment received
- Ongoing or expected future treatment
- How injuries affect your daily life
5. Property Damage
- Vehicle damage (with repair estimates or total loss valuation)
- Other damaged property (phone, glasses, cargo, etc.)
6. Itemized Damages
A complete accounting of all your losses (see next section).
7. Your Demand
A specific dollar amount with a response deadline (typically 30 days).
8. Supporting Documentation
List all enclosed documents:
- Police report
- Medical records and bills
- Repair estimates
- Photos of damage and injuries
- Proof of lost wages
Calculating Your Damages
Economic Damages (Out-of-Pocket Costs)
| Category | Examples | Documentation |
|---|---|---|
| Medical expenses | ER, surgery, physical therapy, medications, medical equipment | Bills and receipts |
| Future medical costs | Expected surgeries, ongoing therapy | Doctor's estimate |
| Lost wages | Time off work for treatment, recovery | Pay stubs, employer letter |
| Future lost income | Reduced earning capacity | Expert opinion if available |
| Vehicle repair/replacement | Repair estimate or actual cash value if totaled | Repair estimates, NADA value |
| Rental car | Transportation while car was unusable | Rental receipts |
| Other property | Phone, laptop, glasses damaged in crash | Receipts, repair costs |
Non-Economic Damages (Pain and Suffering)
These are harder to calculate but often make up the largest part of a personal injury claim:
- Physical pain and suffering: The actual pain from injuries
- Emotional distress: Anxiety, PTSD, depression
- Loss of enjoyment: Activities you can no longer do
- Disfigurement: Scarring or permanent changes
- Loss of consortium: Impact on relationships
How to Calculate Pain and Suffering
Insurance companies typically use one of two methods:
Multiplier Method: Economic damages × 1.5 to 5
- Minor injuries, quick recovery: 1.5-2x
- Moderate injuries, longer recovery: 2-3x
- Serious injuries, permanent impact: 3-5x
Per Diem Method: A daily rate for every day you suffered
- Example: $100/day × 180 days of recovery = $18,000
Sample Damage Calculation
- Medical bills: $12,500
- Lost wages: $4,000
- Vehicle repair: $8,200
- Rental car: $1,100
- Total economic damages: $25,800
- Pain and suffering (2.5x multiplier): $41,250
- Total demand: $67,050
Car Accident Demand Letter Template
[Your Name]
[Your Address]
[City, State ZIP]
[Date]
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
[Insurance Company/At-Fault Driver Name]
[Address]
[City, State ZIP]
Re: Claim #[Number] | Date of Loss: [Accident Date] | Insured: [At-Fault Driver Name]
Dear [Adjuster Name/At-Fault Party]:
This letter constitutes a formal demand for compensation arising from the motor vehicle accident that occurred on [DATE] at [LOCATION]. Your insured, [NAME], caused this collision by [DESCRIBE NEGLIGENT ACTION — e.g., "running a red light at the intersection of Main Street and Oak Avenue"].
Facts of the Accident
On [DATE] at approximately [TIME], I was [describe what you were doing — e.g., "traveling northbound on Main Street approaching the intersection of Oak Avenue"]. At that time, [describe what the other driver did — e.g., "your insured, traveling westbound on Oak Avenue, ran a red light and struck the driver's side of my vehicle"].
The police responded to the scene and documented the accident in report number [NUMBER]. [Mention any witness statements or traffic camera footage if available.]
Injuries and Medical Treatment
As a result of this collision, I sustained the following injuries:
- [List injuries — e.g., "Cervical strain (whiplash)"]
- [Additional injuries]
I received the following medical treatment:
- [List treatment — e.g., "Emergency room visit at City Hospital on [DATE]"]
- [Physical therapy, follow-up visits, etc.]
[Describe ongoing symptoms or limitations if applicable.]
Property Damage
My [YEAR MAKE MODEL] vehicle sustained significant damage to the [describe damage]. Per the enclosed repair estimate from [SHOP NAME], the cost to repair is $[AMOUNT]. [Or: My vehicle was declared a total loss. The fair market value is $[AMOUNT] based on [NADA/KBB/comparable sales].]
Damages
| Medical expenses | $[AMOUNT] |
| Future medical (estimated) | $[AMOUNT] |
| Lost wages | $[AMOUNT] |
| Vehicle repair/replacement | $[AMOUNT] |
| Rental car | $[AMOUNT] |
| Other property damage | $[AMOUNT] |
| Pain and suffering | $[AMOUNT] |
| TOTAL DEMAND | $[TOTAL] |
Demand
Based on the clear liability of your insured and the damages I have suffered, I demand payment in the amount of $[TOTAL AMOUNT].
Please respond to this demand within thirty (30) days. If I do not receive an acceptable response, I am prepared to file suit and seek full recovery through the courts, including additional costs and attorney's fees where permitted by law.
Enclosed Documentation:
- Police report
- Medical records and bills
- Proof of lost wages
- Repair estimates/total loss valuation
- Photos of damage and injuries
Sincerely,
[Your Signature]
[Your Printed Name]
[Phone Number]
[Email Address]
Negotiating with Insurance Companies
Your demand letter is the opening of a negotiation. Here's how to handle the back-and-forth:
Start High, But Be Reasonable
Demand more than you'd accept, but stay within reason. Asking for $500,000 on $5,000 in damages gets you ignored. Asking for $15,000-$20,000 when you'd accept $10,000 gives room to negotiate.
Expect a Low First Offer
Insurance adjusters are trained to start low. A first offer of 30-50% of your demand is normal. Don't accept it — but don't be insulted either. Counter with 10-15% below your original demand.
Don't Accept Verbal Offers
Get everything in writing. Verbal offers aren't binding. Before accepting any settlement, get a written offer that spells out exactly what you're receiving.
Know Your BATNA
Your Best Alternative To a Negotiated Agreement is small claims court (for smaller claims) or a personal injury lawsuit (for larger ones). If the insurance company knows you'll actually sue, they negotiate more seriously.
Don't Discuss the Accident in Detail
If an adjuster calls to "discuss" the accident, be careful. They're looking for statements they can use to reduce your claim. Let your demand letter speak for itself.
What If They Don't Have Insurance?
About 13% of U.S. drivers are uninsured. If the at-fault driver has no insurance:
1. Check Your Own Policy
If you have uninsured motorist (UM) coverage, file a claim with your own insurer. They'll pay you and then try to recover from the at-fault driver.
2. Send a Demand Letter Anyway
Send the letter directly to the at-fault driver. They may have assets or be willing to set up a payment plan to avoid a lawsuit.
3. Sue Them
For smaller amounts, small claims court is quick and doesn't require a lawyer. For larger amounts, a personal injury attorney may take your case on contingency.
4. Wage Garnishment
If you win a judgment, you can garnish their wages or levy their bank accounts. Having a judgment also affects their credit and ability to get future insurance.
What Happens After You Send Your Demand Letter
After mailing your demand letter, expect one of four outcomes:
1. They Pay (Best Case)
Some defendants or insurers will pay the full demand to avoid further hassle. More common with straightforward liability and well-documented damages.
2. They Counter-Offer (Most Common)
You'll go through several rounds of negotiation, meeting somewhere in the middle. This is normal and expected.
3. They Deny Liability
If they deny they're at fault, you'll need to decide whether to sue. For car accidents, the police report and physical evidence usually make liability clear.
4. They Ignore You
If they don't respond within your deadline, send a brief follow-up giving them 10 more days. Then follow through: file in small claims court or consult a personal injury attorney.
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Start Your Demand LetterKey Takeaways
- Wait until you know your full damages before sending a demand letter
- Include all economic damages (medical, lost wages, property) plus pain and suffering
- Use the multiplier method (1.5-5x economic damages) to calculate pain and suffering
- Send via certified mail with return receipt for proof of delivery
- Expect negotiation — your demand letter is the opening offer, not the final number
- If they have no insurance, check your own uninsured motorist coverage first
Related Articles
- Demand Letter to Insurance Company: How to Get Your Claim Paid
- How to Write a Demand Letter: Complete Guide
- What Happens After You Send a Demand Letter
- Demand Letters and Small Claims Court
Free Tools: Try our Damages Calculator, Dispute Diagnostic Quiz, or Statute of Limitations Lookup.