What Is a Settlement Demand Letter?

When you hire a car accident lawyer Phoenix, they will send the insurance company and any other parties responsible for the crash a letter outlining your claims, damages you’ve incurred, and the amount you want to settle the case. The settlement demand letter typically triggers settlement negotiations and the legal process.

What’s Included in a Settlement Demand Letter

A demand letter is not legally binding. It explains the damages and the amount a victim of an accident wants as compensation for their losses. 

Arizona does not have specific legal requirements for a demand letter, but there are certain elements that should be included to convey the seriousness of your claims. These include:

• Identification of the victim, the wrongdoer, and their roles in the incident
• Details of the incident, including dates, locations, and parties involved
•  Legal reasons why the other party is at fault
• Medical care and any disabilities that resulted from the incident
• Detailed explanation of the losses incurred because of the accident, including non-economic damages such as pain and suffering
• Supporting evidence for your claim (e.g., police reports, medical records, photos, witness statements, lost wages statements, etc.)
• The amount you want to settle the claim
• Deadline for a response

The demand letter should be concise and not include information unrelated to the claim. Some damages (e.g., emotional distress damages in settlements) may be hard to quantify. Your attorney can advise you on how to put a number together and maximize your compensation.

Essential Elements of a Settlement Demand Letter

Why a Settlement Demand Letter Is So Important

Lawsuits can take a long time to resolve, even for the most common car accident injuries Phoenix. It can be very expensive and emotionally exhausting for everyone involved. There is also no guarantee of a win or a fair award if the case goes to court, regardless of how strong the claims seem.

Sending a professionally written demand letter with a tracking number is a critical step that creates a paper trail and demonstrates how serious you are about your claims. It’s often the best way to bring all parties together to have meaningful discussions about a fair settlement.

What Happens Next?

In most cases, the dollar amount in the initial settlement demand letter is higher than what is expected, leaving room for negotiations. In Phoenix, the party that receives the demand letter will usually respond with a low-ball counteroffer or a willingness to negotiate. 

Sometimes, the wrongdoer will ignore the demand letter, and sometimes, the wrongdoer will accept responsibility and agree to pay the amount you’re requesting. If an agreement can’t be reached within the time stated in the letter, it may be time to start formal legal action to enforce your rights.

Don’t Wait. Contact Gage Mathers Now

The highly experienced personal injury attorneys at Gage Mathers understand the intricacies of Arizona personal injury laws. We are intimately familiar with legal deadlines and can help you avoid making mistakes in your settlement demand letter that might impact your ability to receive a fair settlement for your losses.

Contact us today for a free consultation and to learn more about how we have recovered more than $325 million for our clients!

About the Author

Joseph D'Aguanno

Guided by the belief that being a highly skilled specialist in a narrow field is better than being ordinary in everything, Joseph “JD” D’Aguanno leads Arizona’s best personal injury law firm in Phoenix, AZ. Having extensive cross-training in pre-litigation negotiations and trial lawyer skills, with decades of experience, JD strives to provide clients with the most valuable legal services a personal injury lawyer can provide. Under his direction, Gage Mathers Law Group is an award-winning personal injury law firm providing aggressive representation to victims of a car accident, medical malpractice, dog bite, motorcycle accident, and other injurious events. Gage Mathers is trusted by thousands of lawyers and clients throughout the country because of their reputation for getting clients the maximum compensation they deserve.

Years of experience: Over 24 years
Bar number: 020421
Location: Phoenix, AZ
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