The Role of Demand Letters in Personal Injury Cases

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If you’ve been injured in a car crash, truck collision, slip and fall, or any other type of personal injury accident caused by someone else’s negligence, you deserve financial compensation for your medical bills, lost wages, and pain and suffering. One of the first and most important steps in the claims process is sending a demand letter.

Although it might sound like just another piece of paperwork, a demand letter plays a critical role in setting the stage for negotiations. It gives the other side notice of your claim, outlines why they’re legally responsible, and specifies the amount you’re seeking in damages. A well-prepared demand letter often leads to a favorable settlement without going to court.

At Smith & Hassler, our Houston personal injury attorneys understand how an effective demand letter can push insurance companies to take claims seriously.

What is a demand letter?

A demand letter is a formal document sent to the person or party responsible for your injury, typically through their insurance company, demanding financial compensation for your accident-related losses. It’s often the first official step in the negotiation phase of a personal injury case and can influence whether the claim is resolved quickly or escalates to a lawsuit.

This letter serves both as a notice of your intent to pursue legal action and as a detailed summary of the evidence supporting your claim. In Texas, demand letters are often sent once the injured person reaches maximum medical improvement (MMI) – the point at which their condition has stabilized and the full extent of their damages is known.

While insurance companies often try to minimize payouts, a clear and well-supported demand letter can compel them to offer a fair settlement to avoid litigation.

What should go into a demand letter?

A strong demand letter does more than ask for money – it builds a case. For your letter to be taken seriously by the insurance company, it needs to be professionally written, factually accurate, and well-documented. Key components of an effective demand letter include:

Introduction and Statement of Facts – This includes your name, the date of the incident, and a brief summary of what happened. This section should also include where and how the accident occurred, and why the other party is at fault.
Description of Injuries – This is a detailed overview of your injuries. This includes initial diagnoses, ongoing symptoms, and long-term or permanent effects.
Medical Treatment and Costs – All treatment you received – emergency care, surgeries, physical therapy, medications, and future care needs – should be listed here, along with attached documentation of medical bills and provider notes.
Lost Wages and Earning Capacity – If the injury affected your ability to work, this section will include documentation from your employer and/or a medical professional verifying the time you missed and how your earning potential has changed.
Pain and Suffering – This section addresses non-economic damages, such as physical pain, emotional distress, reduced quality of life, and the impact of the injury on your daily activities and relationships.
Supporting Documentation – There should be attachments of any relevant evidence: police reports, medical records, photographs of injuries or property damage, witness statements, or expert opinions.
Demand for Compensation – The letter should state a specific dollar amount for total compensation and explain how this figure was determined. This shows the insurance company that your claim is well-founded and that your losses have been calculated thoughtfully.
Response Deadline – This is a clear deadline for the insurance company to respond, typically 30 days, and indicates that you may pursue legal action if a fair settlement is not offered.

An effective demand letter is persuasive, factual, and structured to show you’re serious and prepared to go to court if necessary.

Can I write my own demand letter?

While writing your own demand letter is possible, working with a personal injury lawyer dramatically increases your chances of success. Insurance companies tend to take claims more seriously when an experienced attorney is involved.

A well-crafted demand letter from a law firm shows that you have legal representation and are ready to escalate the matter to court if necessary.

An experienced Houston personal injury lawyer can:

Ensure accuracy and completeness – Your lawyer will gather all the relevant evidence and present it in a compelling, legally sound manner.
Calculate your damages – An attorney understands how to value pain and suffering, future medical needs, and long-term loss of income, which are often underestimated by people who have been injured.
Avoid mistakes – Inaccuracies or emotional language can weaken your claim. A lawyer can ensure your letter is professional and focused on facts.
Choose strategic timing – A skilled attorney knows when to send the demand letter – not too early (when damages aren’t fully known) and not too late (risking delay or reduced leverage).
Negotiate effectively – Once the demand letter is sent, your attorney will handle all communications with the insurance company, using legal knowledge and negotiation tactics to push for a fair settlement.

At Smith & Hassler, our Houston attorneys have decades of experience negotiating personal injury settlements and know how to draft demand letters that get results. We understand how insurers operate – and we’re ready to fight for the compensation you deserve.

What happens after the demand letter is sent?

After your demand letter is submitted, the insurance company or opposing party will typically respond within the timeframe you provided. Their response may vary depending on how strong your claim is and the insurer’s internal policies. Possible outcomes include:

Acceptance of the demand – If the insurance company agrees to your requested amount, a settlement agreement will be drawn up, and you’ll receive your compensation without needing to file a lawsuit.
Counteroffer – More commonly, the insurer will respond with a lower amount. This begins the negotiation process. Your attorney will advise you on whether the offer is fair and will push for an amount that better reflects the true value of your claim.
Denial of liability – In some cases, the insurance company may deny fault altogether, arguing that their insured is not responsible or that your injuries were pre-existing. If this happens, your attorney may recommend filing a personal injury lawsuit and taking the case to court.
Delay or no response – If the insurance company fails to respond within the deadline, your lawyer can follow up and begin preparing to move the case forward.

In every case, the demand letter serves a critical purpose: it creates a documented starting point for negotiations and signals your willingness to take the claim as far as necessary to secure justice. It also helps preserve evidence and can be used in court if the case progresses to litigation.

Our personal injury lawyers can help you demand the compensation you deserve

If you were injured in an accident in Houston, don’t let the insurance company minimize your losses. At Smith & Hassler, we’ve been representing the injured in Houston and throughout Texas for over 30 years. We know how to build strong cases and fight insurance companies to recover full and fair compensation. A powerful demand letter can be a key factor in your claim.

Contact us today for a free consultation. We’ll review your case, explain your legal options, and take care of every step in the process – including crafting a demand letter that sets the tone for a successful outcome. And because we work on a contingency fee basis, you don’t pay unless we win.

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