When employing a law firm, the national average cost of a demand letter is around $1,400. It's most likely slightly shy of that figure. It is not inexpensive. Most attorneys charge $250 per hour and devote 5 hours to your case, producing and submitting the letter. Add another $175 for out-of-state attorneys if they don't have a local office where they can bill their time. The demand letter is the first contact you make with the insurance company after your car accident. Therefore, it is important that you write a clear and concise letter. The more information you include, the easier it will be for the insurance company to respond. In addition to including all the necessary information, you also need to consider how much the insurance company's policy limits are. If your claim exceeds their policy limit, you cannot collect any additional money from them. Before you send out your demand letter, ask yourself whether or not your claim is worth their maximum coverage. If not, think about ways to reduce the amount you're asking for. Finally, know what your attorney fee contract says about how much an attorney must be paid in order to submit a demand letter on your behalf. Some firms may be able to submit letters on a contingency basis, which means they do not charge unless they win your case. Other firms may only accept cases that cannot be settled within policy limits.