If another party caused your accident or injury, they may be legally responsible for your damages. Economic and non-economic damages compensate you for financial losses, pain and suffering, and more. Most personal injury cases are resolved by negotiating a settlement with the at-fault party’s insurance company.
The insurance company may make a settlement offer. Beware! Insurance companies undervalue damages to avoid large payouts for claims. Therefore, you may need to prepare a settlement demand letter as a counteroffer or an initial settlement offer.
Receiving a fair settlement may depend on how well you write your demand letter. Of course, the best way to protect your rights is to allow an experienced personal injury lawyer to handle the claim.
How Much Is Your Personal Injury Claim Worth?
You must determine how much your damages are worth before you write a demand letter. It is important to remember that you cannot calculate how much your case is worth until you reach maximum medical improvement (MMI).
You reach MMI when you fully recover from your injuries or your doctor tells you that your condition is unlikely to improve with further treatment. Until you reach MMI, you cannot know the full extent of your damages. For instance, if you sustain a lifelong impairment, you should include future damages in your settlement demand letter.
Economic damages for a personal injury case include:
- Medical bills and costs
- Out-of-pocket expenses
- Lost wages and employment benefits
- Personal care and household services
- Loss of earning capacity
- Rehabilitative therapy and treatment
Non-economic damages represent your pain and suffering. They include diminished quality of life, impairments, disfigurement, and scarring. You can also receive compensation for mental anguish and emotional distress.
Insurance companies undervalue pain and suffering damages. If you sustain a permanent impairment or catastrophic injuries, you may want to hire an attorney to ensure you do not accept a settlement that is lower than the value of your claim.
What Should I Include in a Demand Letter to the Insurance Company?
The contents of a demand letter are customized based on the facts and circumstances of a claim. Information for a demand letter includes, but is not limited to:
- Your name and contact information
- The name of the person who caused your injuries and the insurance policy number (if known)
- A discussion of the facts of the accident
- The legal basis for your claim, such as negligence, intentional torts, or strict liability
- A description of your injuries, including the medical treatment you received
- A list of your medical bills, lost wages, and other financial losses and expenses
- A discussion of your pain and suffering
- A settlement demand (i.e., the amount of your damages)
- A deadline you expect to receive a response before beginning legal action, usually at least 30 days
You also want to include supporting documentation, such as copies of medical bills, accident reports, statements of lost wages, and more. If the insurance company has not sent a reservation of rights letter, you can expect to receive one in response to your demand letter. A reservation of rights letter informs you that the insurance company reserves the right to deny your claim if it finds no liability for the claim.
A demand letter should be concise and professional. It should also be organized and thorough. You must also be careful not to include any information or statements that the insurance company could use against you later.
How Can I Afford To Hire a Personal Injury Lawyer To Write a Settlement Demand Letter?
Most personal injury lawyers take cases based on a contingency fee. Instead of paying an upfront fee to hire the attorney, the lawyer agrees to accept a percentage of what they recover for your case. You do not have to worry about paying the attorney until they win compensation for your case.
Hiring a lawyer to handle your case has many benefits, including protecting you from an insurance company trying to take advantage of you. Although you may be able to write a settlement demand letter on your own, it is strongly advised that you have help from a lawyer. Set up a free consultation today.
Contact the Chicago Personal Injury Law Firm of Zayed Law Offices Personal Injury Attorneys for Help Today
For more information, please contact the experienced Chicago personal injury lawyers at Zayed Law Offices Personal Injury Attorneys today. We offer free consultations.
We proudly serve Cook County, Will County, Kendall County, and its surrounding areas:
Zayed Law Offices Personal Injury Attorneys – Chicago Office
10 S La Salle St STE 1230, Chicago, IL 60603
Phone:(312) 726-1616
Hours: Open 24/7
Our firm is located near you. We have an office in Chicago
Find us with our GeoCoordinates: 41.8815493,-87.6327515
Zayed Law Offices Personal Injury Attorneys – Joliet Office
195 Springfield Ave, Joliet, IL 60435
Phone: (815) 726-1616
Our firm is located near you. We have an office in Joliet
Find us with our GeoCoordinates: 41.5254295,-88.1381011
