Below is a sample demand letter for an auto accident case. The original offer was $25,000, but the case was ultimately settled for $750,000.
So, in a sense, this demand letter to the insurance company did not work in terms of settling before the lawsuit. But this demand package did set up this car accident claim with the insurance company for future resolution. Erie likely increased its settlement reserves, which paved the way for settlement down the road.
David G. Masson, Esquire
Forest & Mason
426 Pratt Street
Baltimore, Maryland 21202
Re: Toll v. Dave’s Bar and Grill, et al.
Case No. 24-C-06-00860633
More Discovery Samples
Dear Dave:
It was nice speaking to you last week. As you know, our original intent was to file suit and see where the chips will fall. But you have asked me to give you a demand letter setting forth our claim for damages and why we believe this case is worth $1.8 million. Again, I believe that Dave’s Bar & Grill has two concurrent $1 million policies with Erie and Safeco, who have agreed to split any settlement/verdict.
We have to begin with Amy Toll. She is an amazing, beautiful young 24-year-old woman who has suffered injuries that will change the rest of her life. Your file does not and cannot, as I told you, document what a wonderful person she is. If you are looking for someone to spin a sob story, you will not be getting it in this trial.
Amy is a fighter who, while not conquering her injuries, fights like Ali fought Frazier. One reason we were so hesitant to send out a demand package before filing this case is that it is impossible to evaluate this claim without you meeting Amy. I think you will agree after taking her deposition that she will be an absolutely amazing witness at trial.
Facts of the Accident
Amy Toll was traveling northbound on Baltimore & Annapolis Boulevard in Glen Burnie, Maryland. Plaintiff Toll turned on her left-hand turn signal and got into the left-turn lane to make a left-hand turn onto Castle Harbour Way. Plaintiff Toll came to a complete stop in the left-turn lane and was waiting for traffic to clear so she could proceed onto Castle Harbour Way. Defendant Green was traveling southbound on Furnace Branch Road.
Defendant Green struck the Plaintiff”s vehicle head-on while it was completely stopped in the left-turn lane of northbound traffic. Defendants agree on liability and do not dispute that Defendant Mary Green was working as an agent of Defendant Dave’s Bar & Grill at the time of the accident.
Medical Summary of Treatment
At the time of the accident, Amy Toll was a healthy, 23-year-old girl with no prior medical history of back or neck complaints. Because of the accident, she developed pain in her right arm and neck and was seen in the Emergency Room at Anne Arundel Medical Center. She was ultimately diagnosed with cervical radiculopathy at C5-C6 and a herniated disc at L4-L5. After her complaints of pain did not resolve, Dr. Brian Sullivan performed a bilateral L4/L5 laminoforaminotomy discectomy and right-sided L5-S1 laminoforaminotomy and discectomy on April 6, 2022.
Regrettably, post-surgery MRIs revealed a residual disc herniation at L4-L5 and epidural fibrosis at several nerve levels. After complaints of pain continued through post-operative physical therapy, and Plaintiff Toll developed a problem with dragging of her right leg, she sought pain management treatment with Dr. Mark Coleman. After conservative efforts failed, Dr. Paul Asdourian performed bilateral L4-L5 revision laminectomies, L4-S1 posterolateral fusion with placement of Zodiac instrumentation, right iliac crest bone graft, and posterior lumbar interbody fusion at L4-L5 with PEEK cages on January 20, 2023.
Although Ms. Toll has had some improvement in recent months, this second back surgery has not made Ms. Toll significantly more functional. She attempted to return to school this semester by taking classes online with the Baltimore City Community College and physically on-campus at the University of Maryland at Baltimore County. While she could maintain her online classes, she dropped her UMBC classes because she could not attend class without disrupting other students with her inability to sit or stand still because of pain. She continues to take Hydrocodone, Skelaxin, and Lidoderm for pain.
Plaintiff Toll will elicit expert testimony from her treating doctors that she can only work only part-time because of the difficulty and pain she experiences when sitting. Vocational rehabilitation expert Lee Mintz is expected to testify that Plaintiff Toll has lost $81,412.50 in wages (5 months at an annual salary of $24,000.00 and $34,278.00 per year since April 2020).
Additionally, Ms. Mintz will testify that Plaintiff Toll would have eventually assumed a teaching position in the Baltimore City Public School System at a starting salary of $41,226.00 per year; and that within 10 years Plaintiff Toll would be earning $62,010.00 annually. Concerning a part-time job, which is all Ms. Toll is expected to work, Ms. Mintz does not expect Ms. Toll’s salary to grow significantly beyond the range of $12,000.00 to $13,000.00 per year (50% of the clerical mean) in today’s dollars.
Accordingly, her future lost wage claim is $1,372,000.00. This number is for the purpose of this mediation. At trial, we expect the number will be higher to include the yearly raises she would receive after the first 10 years and the value of the benefits she would receive as a teacher as opposed to a part-time clerical worker where benefits are typically nonexistent.
DAMAGES
| Category | Amount |
|---|---|
| Past Medical Expenses to Date | $167,177.78 |
| Future Medical Expenses | TBD |
| Past Lost Wages | $81,412.50 |
| Future Lost Wages | $1,372,000.00 |
| Pain & Suffering Cap (as of July 29, 2022) | $920,000.00 |
| Total Claim for Specials | $2,590,590.20 |
Ms. Toll is a beautiful young woman who will never be the same no matter what the outcome of this case. She is willing to settle today for $1.9 million, a nearly $700,000 discount on what this case will be worth at trial. When we file suit, this offer will be off the table.
I look forward to hearing from you.
Very truly yours,
Miller & Zois, LLC
Ronald V. Miller, Jr.
Seven Things to Keep in Mind When Writing a Demand Letter
Writing a demand letter in a car accident case is a critical step for any lawyer seeking a settlement from an insurance company. You should send a demand letter even in cases where you have no intention of settling before filing a lawsuit. Why? Because, as we allude to above, it helps set up your claim for future settlement.
Here’s a summary of advice for crafting an effective letter.
- Begin with the Basics: Start your demand letter to the insurance company for an auto accident by clearly stating the purpose of the letter and providing the basic facts of the accident and the resulting damages. This sets the stage for your arguments and helps the adjuster understand the context.
- Detail the Accident: Use a section in your letter to precisely outline the circumstances of the car accident. A clear, concise description ensures that the facts are understood and helps prevent any disputes over what happened.
- Document Injuries and Treatments: At least 90% of your demand letter should focus on the specifics of the injuries and why the insurance company should view the medical records as you do. So every demand letter for personal injury from a car accident should include a thorough list of injuries sustained by your client and how they are impacting their lives, along with detailed medical records and expenses. Highlight any long-term rehabilitation needs or permanent disabilities.
- Include a Financial Summary: When drafting your settlement demand letter for a car accident, present a calculated total of all costs incurred, such as medical expenses, lost wages, and pain and suffering. This part of the letter is your demand package for the auto accident, outlining the financial impacts comprehensively.
- Support with Evidence: Attach all relevant documentation to your auto accident demand letter. This might include police reports, medical bills, proof of lost wages, and statements from witnesses. This evidence is crucial in substantiating the claim, and it lets the insurance company know you are ready to fire the gun. (Also, consider sending a sample complaint. You want them to know you are ready to file suit and there are not many better ways to send that message better than sample pleadings and discovery that is ready to go.)
- Make a Specific Demand (or not): Give real thought to whether you want to put a specific number in your demand letter. We sometimes do and we sometimes do not. You can almost never go wrong demanding the policy limits. At the close of your demand letter for a car accident, specify the amount you are requesting as a settlement. Be clear and assertive in your demand, as this communicates the seriousness and confidence in your client’s position.
- Make the Length Proportional to the Case: Writing an overly long demand letter in a car accident case where the injuries are not significant can be counterproductive and may signal inexperience. Tailor the length to the severity of the injuries and the value of the claim.
More Information
- How long until the insurance company responds to your demand letter? We took a look at our last 110 cases to compare different insurance companies to see how fast they respond to a demand letter.
- Another sample demand letter
- Template letter for first party and third party bad faith cases
- How lawyers and juries determine value
- Sample agreement to arbitrate a serious personal injury case
- Free guide to handling personal injury cases which includes scores of templates for personal injury lawyers