How to Write a Demand Letter to an Insurance Company

A demand letter to an insurance company documents your claim. In other words, this letter is where you place all facts involved in your particular claim and address it to the insurance company. In the event where you must contact an insurance company with regards to your claim, a demand letter should be the first step taken. The demand letter takes the facts of the event and lays them out in a coherent and chronological way, which helps to ensure that all expenses and other losses are handled properly.

Remember that a demand letter to an insurance company is not a list of demands. Instead, it is a collection of facts regarding the event. It’s not an ultimatum, it’s a summary of events as they unfolded and damages incurred as a result. You don’t have to write a demand letter to an insurance company, but it does serve to move the process forward quickly while bettering your chances of a settlement.

How to Write a Demand Letter to an Insurance Company

Knowing that your demand letter to an insurance company is for facts only, let us start by getting a pad of paper and jot down all the facts as they happened. Keep in mind that you need to have documentation to back up the facts. For instance, if you sustained an injury, you’ll need medical documentation to back it up.

Next, what were the consequences of the event? For example, did an injury caused you to lose income, did they affect important family duties, what are the expenses involved? Other questions to ask yourself include:

  • Was there property damage? If so, what did it cost you?
  • How was the insurance companies client responsible for the event?
  • Were there injuries to yourself? If so, describe them.
  • What costs were incurred?
  • Did injuries cause you to alter your routine?

After you jot down your facts, the next step is to collect important documentation. This documentation includes police reports, medical expense documentation, eye-witness accounts, photos, receipts and so on. Without documentation, your facts will not hold water, period.

Basic Elements of a Demand Letter to an Insurance Company

Your demand letter to an insurance company could be thought of as a chronological narrative of the events as they unfolded. As such, your letter will have a beginning, middle, and end. There are no rules as to the length of the letter, but it should be as concise and compact as you can make it.

Section One: The Introduction

The first paragraph states the purpose of the letter: Settlement negotiations. As such, you must place the following phrase in the introduction: For Settlement Purposes Only. Try to keep the introduction to one to two paragraphs only. Consider the first paragraph of the introduction of the event in question. Include the date and name of who was at fault, and short description of what happened.

Section Two: Summary of Events

This section is where you’ll state the facts of the event in chronological order. Describe the situation as it unfolded. For instance, where were you, what were you doing before the event occurred, how the event occurred. Avoid digression at all costs. If you’ve no proof of a fact, then leave it out. Think of it this way; the claims adjuster was not there, so you are to write a brief narrative of what happened in chronological order so the adjuster can get a good idea of what happened.

How was the Insured at Fault

In this part of the body, you need to show how the insured was involved, how they caused the incident. State why it was their fault and how any damages or injuries were the results of the insured actions. Include your supporting documentation here. The documentation serves as evidence that backs up your claim.

Next, list any injuries and/or damages sustained due to the actions of the insured. Don’t be shy here; detail is important. List any physical or emotional pain, wages lost, etc. Be as specific as possible when listing and calculating the expenses due to you because of the actions of the insured.

There are two types of damages: Special damages and general damages. Special damages include medical expenses, wages lost, medication, and so on. General damages include emotional pain and psychological distress.

Section Three: The Conclusion

Be gracious, and thank the claims adjuster for their time. Next, list your demands. This should include total expenses and the intent to seek court action if necessary. Include a time frame for the reply.

Demand Letter to an Insurance Company Tips

  • Never threaten
  • Never use profanity
  • Include facts only
  • Consulting a lawyer before you send the letter can improve your chances for settlement
  • Never write anything that states you might be partly at fault–Never
  • Always include evidence: Documentation to back up your claim
  • Do not send the letter immediately. Hold back until you know just what the expenses will be
  • It’s perfectly okay to hire an attorney for a consultation, and to sign the letter if necessary.
  • Tell how the injuries affected your life
  • Only write the demand letter after you’ve received treatments
  • The insurer’s file number must be placed on all correspondence with the insurance company

Demand Letter to an Insurance Company Format

The following is how a demand letter to an insurance company should be formatted. Remember to include the phrase “for settlement purposes only” in the first paragraph. This is just a basic outline of a demand letter to an insurance company. As all letters will be unique, adapt your information into the framework.


{Your Name and Mailing Address}

{Name of Claims Adjuster}

{Name and Address of Insurance Company}

{Your Claim Number}

{Insured Name and Date of Birth}

{Your Name and Date of Birth} {Date of the Accident}

Dear {Name of Adjuster}

This letter is for settlement purposes only, and is in reference to the incident which occurred on [Date of Incident} involving your client, the insured {Name of Insured}. I {Your Name} have completed medical exams and treatment for injuries incurred as a result of the incident.

I sustained {Type of Injuries} due to the actions of your insured as they {State How Insured was Responsible}. Law enforcement arrived and {Describe What Law Enforcement Did}.

I was in pain and reported it to the police {Describe the Type of Pain and Location}. I went home to rest. The next day I went to see {Name of Doctor}. I was diagnosed with {Diagnosis}. The doctor ordered me {List Doctors Orders}. As such, I lost 2 weeks wages. {State How Injury Affected Your Life}.

Medical expenses are {List Expenses}:

· {Physician Expenses}

· {Medication Expenses}

· {Total Expenses}

Wages Lost:

· {Total Wages Lost}

Thank you for your kind attention to the above matter. I will be expecting a reply within 30 days of this letter. As your insured was negligent in this case, I demand {Total Dollar Amount}. I include all documentation to back up my claim as an attachment. Thank you again.

Best Regards,

{Your Name}

Demand Letter to an Insurance Company Sample

April 20, 2021

Richard York

555 South Pembroke

Doral, FL 62135

Edward Billings

Trainor Insurance Company

3636 W. Lyle Ave.

Doral, FL 62135

Claim Number: 1234556

Bert Connors DOB: 10/10/1960

Richard York DOB: 12/05/1975

Dear Mr. Billings

This letter is in reference to the automobile accident which occurred on March 17, 2021, involving your client, the insured Bert Connors. I, Richard York, was sitting on the stoplight at Main and Kramer, in Doral, Florida in my 2005 Ford Taurus. I was subsequently rear-ended by your client, Bert Connors at approximately 3:05 pm. Damages to my car totaled $2,500. The police report shows Bert Connors was at fault.

That evening of the accident, I found myself feeling light-headed and throbbing in my lower back. I paid a visit to my personal physician, Dr. Wheeler, for an examination. The doctor diagnosed me with cervical strain. I received a cervical collar and was told to stay home from work for two weeks. He subscribed to pain medication.

The pain continued for 7 days. I was on bed rest at home. In the end, I missed 2 weeks of work, my parent’s wedding anniversary party, and had to hire a cleaner from Cleaners R Us in order to help me clean and cook my meals.

After 2 weeks, I returned to work. I used Uber in order to get to and from work as the doctor advised me not to do drive or do any strenuous work. At the time of this writing, I continue to suffer soreness and difficulty moving around. The expenses are as follows:

· Doctor Wheeler: $150.00

· Cervical Collar: $60.00

· Pain Medications: $200.00

· Lost wages: $2,500.00

· Uber: $500.00

· Caregiver…$1,000.00

· Total Expenses: $4,410.00

Due to the negligence of your client, I experienced pain, lost wages, paid for Uber transportation, a professional caregiver, and medical expenses. I also missed my parents anniversary celebration. As such, I demand compensation for injuries incurred along with general damages to a total of $6,000.00.

Thank you for your attention to the above matter, it is appreciated. I hope to hear from you within 30 days from the date on this letter. I include all relevant documentation as an attachment. Documentation includes a police report, medical documents, work documents, receipts from Cleaners R Us, and Uber receipts.

Best Regards,

Richard York

Demand Letter to an Insurance Company (Word Template)

Demand Letter to an Insurance Company (Word Template)


There you have it, a basic introduction to how to write a demand letter to an insurance company. However, this is for instructional reasons only. It is strongly advised that you seek out a personal injury lawyer for consultation before you send the letter. A lawyer is well versed in such issues and will increase your chances of a settlement, especially if the letter is signed by a lawyer as this shows the insurance company you are serious about your settlement.

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