One advises against including a figure in your demand letter, instead letting the other side make the first offer. This method prevents the injured victim from asking for an amount less than what the insurance company is willing or preparing to offer. You can run into a problem, though, where neither side is willing to give an opening bid, thus stalling the negotiations. The second school of thought says the party making a claim should throw out the first figure. If you do include an asking price, you shouldn't include one that is the same as the amount you'd like to settle for.
Some lawyers suggest asking for double or even triple the amount the claim is worth.
There is a danger, however, in asking for too much right off the bat because it puts the other side in a no-lose position. If you ask for a settlement that is excessively high, the adjuster will usually counter with a figure that is excessively low. After you present your demand letter to the opposing side, the defense attorney or insurance adjuster will respond with a counteroffer or a rebuttal to your arguments. When you receive this rebuttal, it is time to reevaluate your case. Work with an experienced lawyer in your state.