Sample Demand Letter: Claim for Vehicle Damage After a Car Accident

If your car has been damaged in an accident that was someone else's fault, you'll likely send the at-fault party's insurance company a demand letter asking for compensation to have your car repaired or replaced. A demand letter is your attempt to settle your car accident claim before you file a civil lawsuit.

Let's look at some basics on demand letters in vehicle damage claims, and walk through an example of what this kind of letter might look like in a hypothetical case.

What Is a Demand Letter?

An effective demand letter is the centerpiece of a car accident settlement. Your letter should explain:

• why the other party was at fault for the car accident
• your total losses (damages) and
• your settlement demand figure.

How To Put Together a Professional Demand Letter for Car Accident Damage

When you write your demand letter, keep your goals in mind. The best demand letters stick to the facts and include supporting documentation. Here are a few tips on how to write a professional demand letter that the insurance adjuster will take seriously:

Type your letter. If you don't have a computer, ask if you can use a friend's or use one of the computers at your local public library.

Be polite. Don't personally attack the other side or use overly emotional language in your demand letter. Your goal is to reach an agreement, not to provoke an angry or dismissive response.

Keep it short, but not too short. Your letter needs to include all of the important facts, but unnecessary details and dramatic elaborations will only distract from your position. Your letter should include a concise factual summary of the accident, an overview of your damages, your settlement demand, and not much more.

Tell your side of the story. Explain your version of how the accident happened— and why the other side was at fault—with documents like police reports, witness statements, photographs, and state laws (like the Vehicle Code) to support your position. Validate your losses with repair estimates, appraisals, and other evidence. Organize your story in chronological order with specific dates.

Ask for what you want, but be reasonable. Don't expect the other side to read your mind. Demand a specific amount. You might want to ask for a little more than what you want so that you have room to negotiate, but don't be unreasonable. Your settlement demand figure has to be connected to your actual losses.

Set a deadline. If you want to motivate a timely response, include a deadline in your letter. For example, you might end your letter with something like, "I look forward to receiving your reply no later than 10 days from the date of this letter. If I don't hear back from you by then, I'll pursue legal remedies."

Keep copies. Make a copy of your demand and all documents you receive in response. If you are corresponding by email, make a folder to keep all emails and replies.

Use certified mail. Send your demand letter by certified mail with a return receipt requested. You can try email first, but if you don't get a response, send the letter by certified mail.

Get more tips on writing a demand letter in a vehicle damage claim.

Sample Demand Letter: Claim for Vehicle Damage After a Car Accident

Here is an example of what a winning demand letter might look like in a vehicle damage claim after a car accident. (Note: This sample letter is not a replacement for qualified legal advice. It's for illustrative purposes only. If you have questions about a car accident case and are unsure about how to proceed, it might make sense to discuss your situation with a lawyer.)

August 21, 20xx

Mr. Abner Kenny
Northern Insurance
P.O. Box 337
Milwaukee, WI

Re: Your insured: William Jenkins
Date of incident: July 12, 20xx
Your file number: 23SCV666 [Always include the insurer's file number when you write or email the insurer.]

Dear Mr. Kenny:

As I informed you by email on July 16, 20xx, my car was damaged in an accident with your insured, William Jenkins. I was stopped at a stop sign on July 12, 20xx in Waukesha, WI when Mr. Jenkins slammed into the back of my car with his van. [The words "slammed into" are more dramatic than "hit," and they set the tone for a claim of significant property damage.]

Mr. Jenkins was obviously negligent. He rear-ended me while I was waiting at a stop sign. He wasn't paying attention and he was likely speeding when he forcefully hit me. It is an open-and-shut case. [You want to explain how the insured was at fault for the accident, and conclude that the insured was negligent. Support your position with facts from sources like police reports, witness statements, and applicable traffic laws in your state. If the insured admitted liability or apologized for causing the accident, you definitely want to mention that in your demand letter. Learn more about driver negligence and car accident claims and rear-end accidents.]

When Mr. Jenkins slammed into my car, my trunk caved in. I have a small Honda, and small cars don't tend to fare very well when they are hit by vans. My regular mechanic recommended that I take my car to Waukesha Body Shop. The mechanics at Waukesha gave me an estimate of $4,600 for a full repair. I have attached a copy of the estimate to this letter, along with photographs of the damage. [In a vehicle damage claim after a car accident, you want to make sure that the insurer has a copy of all documentation supporting the things you describe in your letter, including your mechanic's estimate and photographs of the damage to your car.]

My car is only two years old, and is worth far more than $4,600. I understand that your appraiser estimates that repairs will cost $4,000. Our estimates are not that far apart. The Waukesha Body Shop is an independent, Honda-authorized repair shop. My understanding is that your appraiser's estimate is from a repair shop that regularly works with Northern Insurance and your estimate doesn't itemize each part and labor cost.

Based on Mr. Jenkins' clear liability for the accident and my damages, I demand $4,600.00 to settle this case. This is not a complex claim. If I do not hear from you in two weeks, I'll have no choice but to contact your supervisor and consider filing a complaint with the Wisconsin Department of Insurance. [If you can't get a response from the adjuster, you might need to go over the adjuster's head and speak to a supervisor or claims manager. If you still can't get a fair settlement offer, you can explore other options like filing a complaint with the state department of insurance or a lawsuit. Learn more about how to encourage a prompt response from an insurance company.]

Thank you.

Respectfully,
[signature]
Fred Smith

What To Do After Sending a Demand Letter

In most cases, you'll get a response from the insurance company within a few weeks, and you'll negotiate a settlement from there. Insurance companies have a financial motive to settle cases as efficiently as possible.

If the insurance company isn't responding to your demand letter, you have options. Make sure the insurance adjuster has the necessary documents to make a decision about your vehicle damage claim. Be persistent if the insurance company refuses to make a fair settlement offer, and don't hesitate to remind the adjuster of your right to take things to court. Just remember that each state has a deadline for filing a lawsuit, called the "statute of limitations." Get the details on these deadlines and other property damage laws in your state.

Most vehicle damage cases can be filed in small claims court, as long as the amount you're asking for is within the dollar limits set by your state's small claims court rules.

Need Help With the Demand Letter Process?

For more examples of effective demand letters and advice on how to craft a demand letter specific to your accident, check out How to Win Your Personal Injury Claim, by Joseph L. Matthews (Nolo). You can also purchase Nolo's demand letter template.

If your car accident claim involves injuries and medical treatment, check out Nolo's sample demand letters and use them to draft your own letter to the at-fault driver's insurance company:

• Sample Demand Letter—Car Accident with Minor Injury
• Sample Demand Letter—Car Accident with Serious Injury.

Should You Hire a Lawyer For a Vehicle Damage Case?

When you suffer losses resulting from a car accident, it often makes sense to talk to an attorney about your situation and your options. But if your potential car accident case involves only a claim for vehicle damage, it's usually a good idea to try getting a fair result on your own (including by putting together the kind of demand letter we've illustrated here).

If your car accident case involves injuries on top of property damage, or if you think some other angle (like potential "bad faith" on the part of the insurer) might make a lawyer's input worthwhile, don't hesitate to reach out for a legal professional's help. Learn more about how an attorney can help with your car accident claim.