Car Accident Settlement Demand Letter Template – Sample

A car accident settlement demand letter is a document issued to a defendant or their insurance company by a claimant informing them of their intent to pursue a settlement for their injuries. It outlines the accident, the claimant’s injuries, and the amount they would like as compensation. Depending on your preferences, this letter could be drafted by or with the help of an attorney.

The aftermath of a car accident can be traumatic, and often, the only consolation is that you might be eligible for compensation. A well-written settlement letter sets the stage for such conversations, and may put you on a sure path to recovery.

Describing Your Accident

Recounting the circumstances surrounding your accident may make for a traumatic experience, but it is crucial to the success of your demand. The reader needs to understand how the accident happened, the damaged it caused, and why you believe it is their insured’s fault. Generally, your description should include the following details:

  • The make, model, color, and license plates of both vehicles
  • The direction in which you and the insured were heading
  • The prevailing weather, road, and traffic conditions
  • Any defensive maneuvers you took to avoid the collision
  • The nature of the collision e.g. head-on, rear-end, or side-impact
  • Your account of the police report and witness statements.
  • A statement explaining why you believe the insured is liable for the accident

How to Make a Monetary Demand

Once you outline all the facts of the accident, you should describe the nature of your injuries, the subsequent treatment, any lost income, and the general impact of the injuries on your life. You should then assign a monetary value to the following damages:

  • Medical expenses
  • Rehabilitation costs
  • Physical therapy
  • Lost income
  • Pain and suffering
  • Vehicle damage
  • Lost earning capacity

Tips for Writing a Car Accident Settlement Letter

Consider the following tips when drafting your car accident settlement letter:

  • Always gather all the information and documents you need beforehand
  • Create a powerful, coherent, and professional argument for yourself
  • Include all the details in a factual way
  • Attach all relevant documents including the police report and your medical records

Car Accident Settlement Letter Format


{Adjuster’s Name}

{insurance Company Name}

{Insurance Company Address}

{City, State, Zip Code}

Re: Claim {Claim No.}

Dear {Mr./Mrs./Ms. Last Name},

On {date of accident}, {insured’s name} was driving a {describe the insured’s car}. {He/she} {describe the accident in detail, including location, time, and nature}. As a result of the accident, I suffered {describe your injuries} and had to {describe your treatment}.

Since then, I have been experiencing {mention any lingering pain or discomfort}. I was also forced to {describe any time spent away from work, if applicable}.

In total, my treatment cost {total medical expenses} and I suffered other losses including:

{List losses and corresponding amounts}

All these losses were brought about by the action of your insured who owed me a duty of care to drive safely and within the law. I am, therefore, demanding compensation in the amount of {insert amount}.

I hope to hear from you within {provide timeline}, else I be forced to {consequence of not responding}.

Thank you for your time.


{Your Name}

{Your Signature}

Sample Car Accident Settlement Letter

2 March 2031

Victor Williams

Life Insurance Company

187 Hiking Lane

Austin, TX 50009

Re: Car Accident Claim 009/98/LIC

Insured: Patrick Kimmel

Dear Mr. Williams,

Your insured, Mr. Patrick Kimmel, swerved into the wrong lane on 20 February 2031 along First Street 009 Grace lane, causing a head on collision between his vehicle and mine. The accident was as unexpected as it was tragic, and I was admitted to Texas National Hospital with whiplash, a broken leg, and a herniated disc in my lower spine.

Due to my injuries, I was hospitalized for 1 week and have had to stay home to continue my recovery. I am currently facing the following losses:

Medical expenses – $15,000

Physical therapy – $3,000

Lost income – $4,000

Vehicle damage – $3,000

All these damages, including my pain and suffering, resulted from your insured’s negligence. I am, therefore, demanding a settlement in the amount of $40,000.

I hope to hear from you within the next 7 business days, else I will be forced to take legal action against your insured.


Philip Ulises

Car Accident Settlement Letter (Word Template)

Car Accident Settlement Letter (Word Template)

Key Takeaways

The car accident settlement letter is one of the most crucial steps in the car accident claim process. Essentially, it outlines the circumstances of the accident, the injuries resulting from it, and the settlement you would like to receive. The letter should be factual, short, and professionally written.

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