Personal Injury Demand Letters Guide

A personal injury demand letter is often the first formal step in seeking compensation for injuries caused by someone else's negligence. This critical document can determine whether your claim settles quickly for fair value or drags on through expensive litigation. This comprehensive guide covers how to write an effective personal injury demand letter, calculate your damages, negotiate with insurance companies, and protect your legal rights throughout the process. For more legal resources, visit the American Bar Association's Public Education resources.

Understanding Personal Injury Claims

Before writing your demand letter, understand the legal basis for personal injury claims:

Elements of Negligence

Most personal injury claims are based on negligence. To succeed, you must prove:

1. Duty of care: The defendant owed you a duty to act reasonably
2. Breach: The defendant failed to meet that duty
3. Causation: The breach directly caused your injuries
4. Damages: You suffered actual harm or losses

Types of Personal Injury Cases

Case Type	Common Defendants	Legal Standard
Auto Accidents	Other drivers, their insurers	Negligence
Slip and Fall	Property owners, businesses	Premises liability
Medical Malpractice	Doctors, hospitals	Professional negligence
Product Liability	Manufacturers, sellers	Strict liability or negligence
Dog Bites	Pet owners	Strict liability (most states)
Assault/Battery	Attacker, negligent security	Intentional tort

When to Send a Demand Letter

Timing is crucial for personal injury demand letters:

Wait Until Maximum Medical Improvement (MMI)

Do not send your demand letter until you have reached MMI - the point where your condition has stabilized and further improvement is unlikely. Sending too early may undervalue future medical needs and leave money on the table.

Consider Statute of Limitations

Every state has a deadline for filing personal injury lawsuits. Send your demand letter at least 60-90 days before this deadline to allow time for negotiation before you must file suit.

State	General Personal Injury	Medical Malpractice
California	2 years	1 year (3 year discovery rule)
Texas	2 years	2 years
Florida	4 years	2 years
New York	3 years	2.5 years
Illinois	2 years	2 years
Pennsylvania	2 years	2 years
Ohio	2 years	1 year
Maine	6 years	3 years

Types of Damages

Understanding damage categories helps you calculate a fair demand:

Economic Damages (Special Damages)

These are calculable out-of-pocket losses:

• Medical expenses: Past and future treatment, therapy, medication, equipment
• Lost wages: Past income lost due to injury
• Loss of earning capacity: Future income impairment
• Property damage: Vehicle repair, damaged personal items
• Out-of-pocket costs: Transportation to appointments, home modifications

Non-Economic Damages (General Damages)

These compensate for intangible losses:

• Pain and suffering: Physical pain from injuries
• Emotional distress: Anxiety, depression, PTSD
• Loss of enjoyment of life: Inability to enjoy hobbies, activities
• Loss of consortium: Impact on marital relationship
• Disfigurement: Scarring, permanent visible injuries

Punitive Damages

Available only in cases of egregious misconduct (drunk driving, intentional harm). Many states cap punitive damages.

Calculating Pain and Suffering

Insurance adjusters and attorneys commonly use two methods to calculate non-economic damages:

Multiplier Method

Multiply economic damages by a factor (typically 1.5 to 5) based on injury severity:

Injury Severity	Typical Multiplier	Example ($20,000 economic damages)
Minor soft tissue	1.5-2x	$30,000-$40,000 total
Moderate (fractures, surgery)	2-3x	$40,000-$60,000 total
Serious (long-term impairment)	3-4x	$60,000-$80,000 total
Severe/permanent	4-5x or higher	$80,000-$100,000+ total

Per Diem Method

Assign a daily dollar value to pain and suffering, then multiply by recovery days:

• Common daily rates: $100-$500 depending on injury severity
• Example: $200/day × 180 days recovery = $36,000
• Works well for temporary injuries with clear recovery period

Essential Elements of a Demand Letter

Your personal injury demand letter should include these components:

1. Header and Recipient Information

• Your contact information
• Date
• Insurance adjuster name and address
• Claim number
• Date of loss
• Insured's name

2. Liability Statement

• Detailed description of the accident
• Explain how the defendant was negligent
• Cite relevant traffic laws, safety codes, or standards violated
• Note any witnesses or police reports

3. Injury Description

• All injuries sustained (use medical terminology)
• Emergency treatment received
• Follow-up medical care
• Current condition and prognosis
• Any permanent impairment or scarring

4. Treatment Summary

• Chronological list of all medical treatment
• Names of all treating physicians
• Facilities where treatment was provided
• Duration of treatment
• Future treatment expected

5. Damages Calculation

• Itemized list of all medical expenses (with totals)
• Lost wages calculation with documentation
• Future economic losses
• Property damage
• Pain and suffering calculation
• Total demand amount

6. Supporting Documentation

• Police/accident report
• Medical records and bills
• Photographs of injuries
• Employment records for lost wages
• Expert opinions if applicable

7. Demand and Deadline

• Specific dollar amount demanded
• Response deadline (typically 30 days)
• Statement reserving rights to pursue litigation

Documenting Your Claim

Thorough documentation strengthens your demand:

Medical Documentation

• Complete medical records from all providers
• Detailed billing statements
• Doctor's prognosis letter
• Medical narrative from treating physician
• Prescription records

Financial Documentation

• Pay stubs showing pre-injury earnings
• Employer letter confirming missed work
• Tax returns (for self-employed)
• Property damage repair estimates/invoices

Evidence

• Accident scene photos
• Injury photos (taken regularly during recovery)
• Police report
• Witness statements
• Surveillance video if available

Negotiating with Insurance Companies

After sending your demand, expect negotiation:

What to Expect

1. Acknowledgment letter: Confirming receipt within 7-14 days
2. Initial response: Often a low counteroffer or request for information
3. Negotiations: Several rounds of back-and-forth
4. Settlement or impasse: Either agreement or decision to litigate

Common Insurance Tactics

• Lowball offer: Initial offers are typically 25-50% of claim value
• Delay: Hoping you'll accept less out of frustration
• Denial of liability: Blaming you for the accident
• Minimizing injuries: Claiming injuries are pre-existing or exaggerated
• Recorded statement requests: Trying to get you to say something damaging

Negotiation Tips

• Never accept the first offer - it's always negotiable
• Counter in writing with specific justification
• Don't reveal your minimum acceptable amount
• Be patient - good settlements take time
• Know your BATNA (Best Alternative to Negotiated Agreement)
• Be prepared to walk away and file suit

Comparative Negligence

Your recovery may be affected if you share fault for the accident:

Rule Type	How It Works	States Using This Rule
Pure Comparative	Recover damages reduced by your % fault (even 99%)	CA, NY, FL, AZ, NM + 8 others
Modified 50%	Recover if 50% or less at fault	AR, CO, GA, ID, KS, ME, NE, ND, OK, TN, UT, WV
Modified 51%	Recover if 51% or less at fault	CT, DE, HI, IL, IN, IA, MA, MI, MN, MT, NV, NH, NJ, OH, OR, PA, SC, TX, VT, WI, WY
Contributory Negligence	Any fault bars recovery completely	AL, DC, MD, NC, VA

When to Hire an Attorney

While minor injury claims can be handled without a lawyer, consider hiring an attorney for:

• Serious injuries: Broken bones, surgery, permanent impairment
• Significant damages: Claims over $25,000
• Disputed liability: Insurance denies fault
• Multiple parties: Complex liability situations
• Bad faith: Insurer refusing to negotiate fairly
• Medical malpractice: Requires expert testimony
• Government defendant: Special rules and short deadlines

Frequently Asked Questions

How much should I demand in my personal injury letter?

Your demand should be 2-3 times what you expect to accept, giving room for negotiation. Calculate your total economic damages (medical bills, lost wages), add non-economic damages using the multiplier method (1.5-5x economic damages depending on severity), and add additional amounts for permanent injury or egregious conduct. Most initial offers will be 25-50% of your demand.

How long do I have to file a personal injury claim?

The statute of limitations varies by state, ranging from 1 year (Kentucky, Louisiana) to 6 years (Maine, North Dakota). Most states have 2-3 year limits for personal injury. Medical malpractice and claims against government entities often have shorter deadlines. Missing the deadline bars your claim permanently.

What if the other party has no insurance?

For auto accidents, check if you have uninsured/underinsured motorist coverage on your own policy. You can sue the individual directly, but collecting may be difficult. For premises liability, check if the property owner has homeowner's or business insurance. Personal assets may be reachable through judgment collection.

Should I accept the insurance company's first offer?

Almost never. First offers are typically 25-50% of claim value and are intentionally low. Insurance adjusters expect negotiation. Counter with a specific amount backed by documentation. Multiple rounds of negotiation are normal. Only accept if the offer fairly compensates your damages or the claim is very minor.

Can I handle my own personal injury claim without a lawyer?

Yes, for minor soft tissue injuries with clear liability and damages under $10,000-$15,000. You'll keep 100% of the settlement instead of paying 33-40% to an attorney. However, for serious injuries, disputed liability, or complex cases, attorneys typically recover more even after their fee. Most offer free consultations.

How long does the settlement process take?

Simple claims may settle in 1-3 months after sending the demand letter. More complex claims take 6-12 months. Cases that go to litigation can take 1-3 years. Don't send your demand until you've reached maximum medical improvement (MMI), even if that takes months - settling too early often means undervaluing your claim.

What if my claim is worth more than small claims limits?

If your damages exceed small claims limits ($5,000-$25,000 depending on state), you have options: file in regular civil court (more complex, may need attorney), waive the excess and sue in small claims for the maximum allowed, or negotiate a settlement with the insurance company. Most significant personal injury cases settle through negotiation or civil court, not small claims.