The demand letter is often the first time that the other party's insurance company realizes that you are serious about pursuing financial compensation. A demand letter should be written carefully and concisely. It should contain all of the necessary sections and language to get your point across without saying something that will hurt your case. The basic sections of a demand letter are:
The heading. At the top of the page should be your name and address, the date, the name and address of the insurance company, the name and address of the insured party, the insurance policy number, and the insurance claim number.
A description of the accident. Explain what happened in the body of the letter. Give your side of the story. Provide all important details, dates, people, events, times, etc. Include any photos or physical evidence that you have to support your claim, as well.
The basis for damages. Include an itemized list of all of the losses that you suffered in the accident. Explain why you believe the insured party is liable, such as a description of that party’s act of negligence.
Your settlement demand (“the ask”). Your demand letter must include a specific demand. It must clearly ask for a specific amount of money, with reasons to support why you are asking for this amount. It should also give an alternative – taking the case to court if the insurer does not agree to your demands.
A conclusion. The conclusion of your demand letter should give the recipient a certain amount of time to respond, such as 15 days. Then, it will have your contact information, name and signature.
Your demand letter should use polite yet compelling language that shows the insurance company that you are to be taken seriously. It should clearly state what you are demanding in exchange for ending the legal dispute. It should be typed, not handwritten, and expressly state that you plan on taking action and going to court if the insurer does not agree to your demands. Make a copy of the demand letter for your own records, then send it to the insurance company or defendant.