What Is a Demand Letter and How Does It Start a California Personal Injury Case?

A demand letter is a formal written document that an injury victim or their attorney sends to the at-fault party's insurance company, setting out the facts of the accident, the nature of the injuries, and a specific dollar amount demanded to settle the claim. In California personal injury cases, the demand letter typically begins the negotiation phase that resolves the majority of cases before any lawsuit is filed.

What Information Does a California Personal Injury Demand Letter Include?

A well-crafted demand letter presents a complete factual and legal argument for liability and damages, giving the insurer everything it needs to evaluate the claim and make a serious settlement offer.

• A detailed narrative of how the accident occurred and why the defendant is legally at fault
• A summary of the medical treatment received, including a chronological list of providers, procedures, and diagnoses
• Itemized economic damages including all medical bills, lost wages, and out-of-pocket expenses
• A description of non-economic damages including pain and suffering, emotional distress, and loss of enjoyment of life
• The specific settlement amount demanded, with a deadline for the insurer to respond

When Should You Send a Demand Letter in a California Personal Injury Case?

The timing of the demand letter is critical because sending it too early, before your medical treatment is complete, can result in a settlement that undervalues your future expenses.

• Wait until you reach maximum medical improvement so all treatment costs are known and documented
• For soft-tissue injuries with full recovery, a demand letter may be appropriate 3 to 6 months after the accident
• For serious injuries requiring ongoing treatment, waiting 12 months or longer ensures the demand reflects the true cost of recovery
• The demand should be sent before the 2-year statute of limitations approaches to preserve your negotiating leverage

How Do Insurance Companies Respond to a California Personal Injury Demand?

Insurance companies rarely accept the initial demand amount, but a strong, well-documented demand letter sets the floor for negotiations and signals that you are prepared to litigate if necessary.

• The insurer assigns the claim to an adjuster who reviews the supporting documentation and evaluates liability
• A counteroffer is typically made below the demand amount, beginning a negotiation back-and-forth
• Insurers are more likely to make serious offers when the demand is supported by thorough medical records and clear liability evidence
• If negotiations fail, the demand letter becomes part of the case file and shows the jury the amount you asked for before filing

What Happens After the Demand Letter Is Sent?

The period after the demand letter is sent is the most active phase of negotiation, and most California personal injury cases settle during this window without ever going to court.

• Negotiations typically last 30 to 90 days, with multiple rounds of offers and counteroffers
• If the parties cannot agree on a settlement, a lawsuit is filed in the appropriate California superior court
• Even after a lawsuit is filed, settlement remains possible at any point before a jury verdict
• Mediation is required in most California civil cases and produces settlements in the large majority of personal injury disputes

A well-prepared demand letter sets the tone for your entire claim. The personal injury lawyers at Avian Law Group draft comprehensive demand letters backed by thorough documentation for clients throughout California, Arizona, and Nevada. Contact our car accident attorneys and personal injury team for a free consultation today.

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