Write a Winning Demand Letter

The demand letter is the centerpiece of the insurance claim negotiation process. In it, you set out to the insurance company your strongest arguments concerning:

• what your injuries were and are
• why the other person is legally responsible for your injuries
• what your medical treatment was and how much it cost
• what your income loss was
• what other damages you suffered, and
• why you qualify to make a claim against someone else under no-fault automobile insurance, if that applies. (For detailed information about no-fault automobile claims, see How to Win Your Personal Injury Claim, by Joseph L. Matthews (Nolo).)

Your letter should conclude with a demand on the insurance company for a lump sum to settle your entire claim.

What to Emphasize in Your Demand Letter

Before beginning to write your demand letter, review your notes from the days and weeks following the accident to remind yourself of the details -- your pain, discomfort, inconvenience, disruption of life, and medical treatments. (See Take Notes After an Accident or Injury.) Then concentrate on the following elements as you draft your letter.

Liability

Start by describing how the accident happened and why the insured person was at fault. In plain language, briefly describe where you were and what you were doing immediately before the accident, then how the accident occurred.

You should also mention any outside support you have for your theory -- such as a police report, building code section, or eyewitnesses' statements.

Comparative Negligence

In many accidents, there is some question about whether your own carelessness contributed to the accident even though the other person was primarily at fault. Raise this issue in your demand letter by denying that you were at all at fault. (For information about how your own carelessness may affect your insurance claim, and to learn the basic rules of comparative negligence, seeProving Fault in Personal Injury Accidents: General Rules.)

Even if you believe that you might have been partly at fault for the accident, do not admit any fault in your demand letter. Although you must consider your own carelessness in deciding what a fair settlement is, it is not your job to make comparative negligence arguments for the insurance company. If and when an insurance adjuster brings up the subject during settlement negotiations, you can debate the question then.

Your Injuries and Treatment

Describe your injuries and treatments -- and don't be shy. Emphasize your pain, the length and difficulty of your recovery, the negative effects of your injuries on your daily life, and any long-term or permanent injury -- especially if it is disabling or disfiguring, such as permanent stiffness, soreness, or scarring.

Of course, you shouldn't make things up or be overly dramatic. Insurance companies will turn a deaf ear to claims they believe are false. Use appropriate medical terms wherever possible -- for example, "narrowing of disk spacing" rather than "strained back."

Medical Expenses

Include a complete list of each medical provider who treated you and the total amount charged by each.

Lost Income

Make a brief statement of the amount of time you missed from work because of your injuries, and refer to whatever letter you have from your employer verifying your pay and missed time. If you are irregularly or self-employed, explain how you arrived at the total figure for lost income.

Other Losses

If you suffered extra or unusual discomforts, embarrassments, inconvenience, or losses as a result of your injuries, mention them in your demand letter.

Your Settlement Demand Figure

In the last paragraph of your letter, demand a specific sum of money as total compensation for your pain, suffering, lost income, and other losses. Set out a figure that is higher than what you think your claim is actually worth (a general rule is 75% to 100% higher than what you would be satisfied with); this allows you some room to negotiate with the insurance adjuster. (For help determining the settlement demand figure, see Nolo's article How Does an Insurer Value an Injury Claim?)

Attach Supporting Documents

Along with your demand letter, send the insurance company copies of documents, records, letters, bills or other writings supporting the things you describe in your letter. (Keep all originals for your own files.)

Personal Injury Settlements - Is it worth it?

If you're considering filing a personal injury lawsuit over a car accident, slip and fall, or any other kind of injury, you may be wondering "What is my case really worth?" The answer comes down to "damages" -- figuring out what your injuries have cost you monetarily, physically, and mentally (and, in some cases, whether the defendant's conduct should be punished).

In a personal injury case, money damages are paid to an injured person (the plaintiff) by the person or company who is found to be legally responsible for the accident (the defendant or their insurer). A damage award can be agreed upon after a negotiated settlement -- among the parties, their insurance companies, and their attorneys, for example -- or may be ordered by a judge or jury following a court trial. (To learn more about how insurance companies value a claim after an accident, see Nolo's article How Do Insurers Value an Injury Claim?)

Below you'll find an explanation of the different kinds of damages that are common in many personal injury cases and how a personal injury damages award can be affected by the plaintiff's action (or inaction).

Compensatory Damages in Personal Injury Cases

Most personal injury damages are classified as "compensatory," meaning that they are intended to compensate the injured plaintiff for what was lost due to the accident or injury. A compensatory damages award is meant to make the injured plaintiff "whole" again from a monetary standpoint (to the extent that's possible). This means trying to put a dollar figure on all the consequences of an accident. Some compensatory damages are relatively easy to quantify -- like reimbursement for property damage and medical bills. But it's harder to place a monetary value on pain and suffering or the inability to enjoy hobbies because of physical limitations caused by lingering accident-related injuries.

Here's a rundown of the different types of compensatory damages that are common in many personal injury cases.

Medical treatment. A personal injury damages award almost always includes the cost of medical care associated with the accident -- reimbursement for treatment you've already received and compensation for the estimated cost of medical care you'll need in the future because of the accident.

Income. You may be entitled to compensation for the accident's impact on your salary and wages -- not just income you've already lost but also the money you would have been able to make in the future, were it not for the accident. In personal injury legalese, a damage award based on future income is characterized as compensation for an accident victim's "loss of earning capacity."

Property loss. If any vehicles, clothing, or other items were damaged as a result of the accident, you'll likely be entitled to reimbursement for repairs or compensation for the fair market value of the property that was lost.

Pain and suffering. You may be entitled to get compensation for pain and serious discomfort you suffered during the accident and in its immediate aftermath -- also for any ongoing pain that can be attributed to the accident.

Emotional distress. Usually linked to more serious accidents, emotional distress damages are meant to compensate a personal injury plaintiff for the psychological impact of an injury -- including fear, anxiety, and sleep loss. Some states consider emotional distress as part of any "pain and suffering" damage that is awarded to a personal injury plaintiff.

Loss of enjoyment. When injuries caused by an accident keep you from enjoying day-to-day pursuits like hobbies, exercise, and other recreational activities, you may be entitled to receive "loss of enjoyment" damages.

Loss of consortium. In personal injury cases, "loss of consortium" damages typically relate to the impact the injuries have on the plaintiff's relationship with their spouse -- the loss of companionship or the inability to maintain a sexual relationship, for example. Some states also consider the separate impact on the relationship between a parent and their child when one is injured. In some cases, loss of consortium damages are awarded directly to the affected family member rather than to the injured plaintiff.

Punitive Damages in Personal Injury Cases

In cases where the defendant's conduct is deemed particularly egregious or outrageously careless, a personal injury plaintiff may be awarded punitive damages on top of any compensatory damages award. Punitive damages stem from a rationale thats quite different from the justification tied to compensatory damages, which is to attempt to "make someone whole."

Punitive damages are awarded to the injured plaintiff, but the real goal of these kinds of damages is to punish the defendant for its conduct -- to hit them in the pocketbook -- and to act as a deterrent. Since it isn't unusual for punitive damage awards to top tens of millions of dollars, most states have set some type of cap on punitive damage awards in personal injury cases.

How Plaintiff's Actions (or Inaction) Can Affect a Damages Award

In some cases, an injured person's role in causing an accident -- or their inaction after being injured -- can diminish the amount of damages available in a personal injury case.

Comparative negligence. If you're at fault (even partially) for the accident that caused your injuries, chances are that any damage award will reflect that. That's because most states adhere to a "comparative negligence" standard that links damages to degree of fault in a personal injury case.

Contributory negligence. In the small handful of states that follow the concept of "contributory negligence" for personal injury lawsuits, you may not be able to recover any compensation at all if you're deemed partially to blame for the accident.

After the accident: failure to mitigate damages. The law in most states expects plaintiffs in personal injury cases to take reasonable steps to minimize or "mitigate" the financial impact of the harm caused by the accident. If an injured plaintiff just sits back and rests on their proverbial laurels when it isn't reasonable to do so (by failing to get necessary medical treatment after an accident, and making their injuries much worse, for example) a damage award might be significantly reduced. (For more information on defense strategies that can counter an injury claim, read Nolo's article Defenses in Personal Injury Cases.)

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