Settlement Basics

How to Write and Send a Demand Letter to an Insurance Company

A demand letter is the document that starts the formal settlement negotiation with an insurance company. Written correctly, it tells the insurer that you know what your claim is worth, that you have the documentation to prove it, and that you are prepared to file a lawsuit if they do not offer a fair amount. Here is exactly how to write one.

Before You Write — Know Your Number

Do not write a demand letter until you have completed the valuation process. Read How to Value Your Georgia Car Crash Settlement first. Your demand letter needs to state a specific number, backed by documentation. Going in without a number — or without documentation — weakens your position significantly.

You also need to know the at-fault driver's policy limits. The demand cannot exceed those limits unless you are also pursuing a UIM claim with your own insurer.

The Structure of a Demand Letter

A demand letter is a business letter, not a personal essay. Keep it factual, organized, and professional. The format below works for auto accident claims in Georgia.

Section 1 — Header Information

At the top, include the following, left-aligned:

• Your full legal name and current address
• The date
• The adjuster's name (if you know it) and the insurance company's name and address
• The claim number (if one has been assigned)

Subject line should read: DEMAND FOR SETTLEMENT — [Your Name] v. [At-Fault Driver's Name] — Claim No. [if known]

Section 2 — Statement of Facts

Write a factual summary of the accident in plain language. Include:

• Date and location of the accident
• Description of what happened — you were stopped at a red light, the other driver failed to stop, rear-ended your vehicle
• Your injuries — brief, factual description of what you felt immediately after and in the following days
• Police response — that officers responded, that the other driver was cited or admitted fault

Do not editorialize, curse, or express anger. The adjuster reads hundreds of these letters. A calm, factual recitation of facts is more credible and harder to dismiss.

Section 3 — Your Injuries and Medical Treatment

List every medical provider you saw, the dates of treatment, and the diagnosis. Do not include every appointment in granular detail — a summary by provider is sufficient. Example:

Following the accident, I sought treatment for neck and shoulder pain. I was seen at [ER Name] Emergency Room on [date] and diagnosed with cervical strain and whiplash. I subsequently completed six weeks of physical therapy at [PT Clinic Name]. My treating physician has indicated I have reached maximum medical improvement as of [date], with ongoing restrictions.

Section 4 — Special Damages (The Money)

This is the most important section of the letter. List every item of damages with a specific dollar amount. Attach supporting documents as exhibits (see below).

• Medical expenses: Total of all bills. Example: "$8,247.00 in documented medical expenses (see Exhibit A)"
• Lost wages: Total of documented wage loss. Example: "$1,800.00 in lost wages for 6 days of missed work (see Exhibit B)"
• Property damage: Repair estimate or total loss settlement. Example: "$3,500.00 in vehicle damage (see Exhibit C)"
• Pain and suffering: State your position. Example: "$20,000.00 for pain, suffering, and inconvenience resulting from the injury and treatment"

Total demand: State a specific number at the end of this section. Example: "The total value of my claim is $33,547.00."

Section 5 — The Settlement Demand

State clearly what you are demanding. The standard approach is to demand at or slightly above your target settlement, giving the adjuster room to negotiate down while still landing in your acceptable range.

Based on the foregoing, I am demanding settlement of my claim in the amount of $30,000.00. This demand is reasonable given the documented liability, the nature and extent of my injuries, and the resulting damages. This demand will expire in 30 days from the date of this letter.

Why set an expiration? Insurance companies have no incentive to respond quickly unless there is a deadline. A 30-day expiration creates urgency. If they do not respond, you can file suit — and they know it.

Section 6 — Closing and Signature

Close professionally. Example:

I am prepared to provide any additional documentation you require and remain available to discuss resolution of this claim. Please direct all correspondence to the address listed above.

If this matter is not resolved within 30 days, I will consider filing a lawsuit in the appropriate Georgia court without further notice.

Sincerely,
[Your Name]

Attaching Your Exhibits

The demand letter is only as strong as the documents behind it. Every category of damages should have a supporting exhibit. Organize them as:

• Exhibit A — Medical Bills and Records: Include the ER records, therapy notes, and all billing statements. Organize chronologically.
• Exhibit B — Lost Wages: Pay stubs showing days missed, or a letter from your employer confirming your absence and pay rate.
• Exhibit C — Property Damage: Repair estimates or the total loss settlement letter from the insurer.
• Exhibit D — Police Report: The accident report showing the other driver was cited or admitted fault.

Make copies of everything before you send. Keep the originals. Send the exhibit copies with the letter.

How to Send It

Send your demand letter by certified mail with return receipt requested — and by email if the adjuster has provided an email address. Using both methods ensures there is no dispute about whether the letter was received and when.

Certified mail creates a paper trail that is useful if this case ends up in court. The return receipt proves the date of delivery.

Address the letter to:

• The adjuster by name (call the insurer and ask for the adjuster assigned to your claim)
• Send a copy to the at-fault driver's insurer's claims department if you want a record with the company itself

What Happens After You Send It

Once the insurer receives your demand letter, one of three things happens:

1. They accept or counteroffer. Most claims settle this way. The adjuster will either accept your demand (rare), send a counteroffer with a lower number (common), or ask for more documentation (common). A counteroffer is not a rejection — it is the start of real negotiation.
2. They reject the demand. If they offer nothing or an amount you find insulting, you have the right to file a lawsuit. Before you do, consider whether the cost of litigation is worth it relative to the policy limits at stake.
3. They do not respond. If the 30-day deadline passes with no response, follow up in writing. If they continue to ignore you, proceed with filing in the appropriate Georgia court.

How to Handle the Negotiation

Insurance adjusters are trained negotiators. They will open low. Here is how to respond:

• Do not get emotional. The adjuster is not your enemy — they are doing their job, which is to minimize the payout. Your job is to maximize it.
• Know your floor. Before you receive any offer, know the minimum you will accept. If the offer does not cover your documented special damages, you are losing money on the deal.
• Justify every number. When you receive a lowball offer, respond with specifics: "Your offer of $12,000 does not account for the $8,247 in documented medical expenses alone. Please review Exhibit A."
• Be willing to walk away. If the insurer will not move to a fair number and your damages exceed the policy limits, filing suit is your right. Most cases settle before trial, but the ones that don't settle are the ones where one side miscalculated.

Dealing with State Farm Specifically

State Farm is one of the largest auto insurers in Georgia and is known for aggressive claims handling. If you are dealing with a State Farm adjuster:

• Document every conversation. Write down the date, the adjuster's name, and what was said. Follow up phone calls with an email summarizing the conversation.
• Do not give a recorded statement without understanding why they are asking. In most straightforward liability cases, you are not obligated to give one — and anything you say can be used against you.
• State Farm will request an Independent Medical Examination (IME). This is not optional — your policy likely requires you to submit to one if requested. It is not independent; it is paid for by the insurer. Be honest about your symptoms and do not exaggerate or minimize.
• Be patient but firm. State Farm adjusters are often handling high caseloads. Follow up consistently, but professionally.

If the Policy Limits Are Too Low — UIM Claims

If the at-fault driver's $25,000 policy limits do not cover your actual damages, do not overlook your own uninsured/underinsured motorist (UIM) coverage. This is coverage you pay for on your own policy that covers the gap.

To pursue a UIM claim, send a separate demand letter to your own insurance company. Your own insurer has the same obligation to investigate and pay your claim — but they have a conflict of interest because every dollar they pay you is money they lose. Treat your UIM claim the same way you would treat a claim against the at-fault driver: with documentation, a specific demand, and a deadline.

Sample Demand Letter Template

Use this template as a starting point. Fill in your specific facts, replace the bracketed items, and attach your exhibits.

[Your Full Legal Name]
[Your Current Address]
[City, State ZIP]
[Phone Number]
[Email Address]

[Date]

[Adjuster Name]
[Insurance Company Name]
[Company Address]

RE: DEMAND FOR SETTLEMENT — [Your Name] v. [At-Fault Driver]
Claim No.: [if available]

Dear [Adjuster Name]:

I am writing to demand settlement of my personal injury claim arising from an automobile accident that occurred on [date] at approximately [time] at or near [location]. The accident was caused by the negligence of [at-fault driver's name], who failed to stop and rear-ended my vehicle while I was lawfully stopped at a red light.

[Continue with facts, injuries, damages, total demand, and expiration per the guidance above.]

Sincerely,
[Your Signature]
[Your Printed Name]