A car accident demand letter can help resolve a compensation claim. When a car accident demand letter is effective, it can prompt the defense to make a fair settlement offer.
Bobby Jones Law represents car accident victims. We write car accident demand letters for injured victims. We explain why the demand letter is important and how an experienced Greenville car accident lawyer can assist with your case.
What Is a Demand Letter and Why Is It Important?
A demand letter is a communication from a plaintiff to a defendant in a legal case. It clearly states the case and the amount the plaintiff is seeking from the defendant. The letter demands that the defendant pay the requested amount.
Demand letters are commonly used in litigation. The plaintiff sends the defendant a letter to communicate several things.
- The plaintiff believes they have a legal claim against the defendant.
- The subject matter of the case and the basis for compensation are outlined.
- The amount the plaintiff will accept in compensation.
- Express that the plaintiff will pursue legal action if the defendant does not pay.
Sending a demand letter isn’t enough—communication must be clear and strategic.
Why the Car Accident Demand Letter Matters
Even though the car accident demand letter happens relatively early in a case, it can be one of the most critical steps. A well-written demand letter can help resolve a case quickly. It can initiate settlement discussions, or the defense may just agree to pay the requested amount. In addition, if the demand letter doesn’t resolve the case, it can signal to the plaintiff that it’s time to take additional steps.
An effective demand letter can mean receiving more compensation. It can mean resolving the case earlier in the process.
Insurance Bad Faith and the Tyger River Letter
In South Carolina, the insurance company’s duty to settle a claim against their insured isn’t just a suggestion or the right thing to do. It’s the law. If the claim meets or exceeds the policy limits, the insurance company must do the reasonable thing and settle. If they refuse, the insurance company may be liable for the full judgment, even the amount that exceeds the policy limits.
For example, say a victim has $75,000 in damages. But the insurance policy limit is $50,000. If the victim demands the full amount, and settling is the reasonable thing to do, the insurance company must do so. If they don’t, they may be liable for the entire $75,000, even though the policy limit was $50,000.
The letter that the victim sends to the insurance company demanding compensation for the policy limit is called a Tyger River letter. The name comes from the court case Tyger River Pine Co. v. Md. Cas. Co. 170 S.C. 286, 170 S.E. 346 (1933). which explained the rule.
For a Tyger River letter to be effective, it must be factual and convincing. A well-written Tyger River demand letter can encourage the insurance company to pay and provide financial relief if it fails to settle a claim.
Insurance Bad Faith in Underinsured Motorist Claims
A similar principle applies to bad-faith UIM claims. If you make a claim under your underinsured motorist policy, and the insurance company unreasonably denies or delays paying your valid UIM claim, you may be able to bring a bad-faith lawsuit against them, as set forth in Nichols v. State Farm Mutual Auto. Ins. Co. 279 S.C. 336, 306 S.E.2d 616 (1983). A bad faith lawsuit may allow the injured party to collect over and above their available UIM insurance coverage. It is essential to have an attorney who knows how to properly craft and construct a demand letter to protect your right to bring a bad faith lawsuit in the event insurance company acts unreasonably and fails to resolve your UIM claim.
Mistakes to avoid in a car accident demand letter
Just like it’s important to do the right things when it comes to a car accident demand letter, there are mistakes to avoid. You must state facts without making damaging admissions or giving away your legal strategy. You need to ask what your case is worth. But ask for too much, and the insurance company won’t take you seriously.
You must successfully navigate the DO’s and DON’T’s of your situation. A lawyer for drafting a demand letter can help.
Lawyer for Your Car Accident Demand Letter
At Bobby Jones Law, we’ve recovered millions for car accident victims. Bobby Jones Law can assist you in writing a demand letter. As your car accident lawyer, Bobby Jones can review your case and prepare your demand letter document.
Why Have a Lawyer for Your Car Accident Demand Letter
Having a lawyer can help you in several ways:
Knowing what information to include: facts, injuries, and documentation
A demand letter for a car accident starts with identifying the case. With many cases ongoing at once, the insurance company needs the case information. A lawyer can make sure your claim number is correct and that you also include the date of the accident, location, and the name of the insured.
Facts
A car accident demand letter should summarize the facts. Consider this example: “The insured person was driving north on Main Street. The victim’s vehicle approached the intersection. Although the victim arrived at the intersection first and had the right of way, the insured proceeded through the intersection without stopping at the stop sign. Despite the victim taking evasive action, the vehicles collided at a high rate of speed.”
Your lawyer can draft a concise statement of facts. It should summarize what happened and show that the defendant is at fault for the car accident.
Injuries
The amount of car accident compensation depends on the victim’s losses. A victim may claim compensation for personal injury, property damage, or both. A demand letter for a car accident should explain the extent of injury.
A lawyer understands what damages you can claim and how to document them in your demand letter. The letter should detail medical procedures, therapies, prescriptions, and office visits. It should itemize the associated costs. A lawyer can explain the impact on your life, including mobility, employment, and personal activities.
Documentation
A demand letter should include strategic documentation. For example, most letters should include the law enforcement car accident report. Pay and income statements can support a claim for wage loss. Medical records can verify injuries and treatment. Repair estimates for the damaged vehicle and other property damage may be included.
Your lawyer can determine what information to include and how to organize it.
Injuries and Medical Costs
A demand letter should describe medical care in detail, including diagnostic testing, surgery, treatment, medical assistance devices, prescriptions, and incidental costs. It’s acceptable, and can even be helpful, to use medical terminology. Your lawyer can effectively navigate complex medical issues.
An experienced Greenville car lawyer can also help you effectively itemize medical expenses. They may create an attachment to list each medical expense, date of care, and services received. A lawyer understands what related expenses you may claim, like mileage for travel to medical appointments and out-of-pocket expenses.
Tone and Language: A Professional Touch
A demand letter is a formal document. Although it’s not filed in court, it’s still an important part of a legal matter. A car accident demand letter must be professional. A lawyer can use the right, formal tone. As your representative, they can avoid emotional language, threats, sarcasm, and insults.
A letter should never use exclamation marks. Word choice should be formal. The letter should not use slang or texting shorthand. Longer sentences are okay. Spelling and grammar must be correct. An experienced car accident lawyer can take care of all those details.
Timeline
Another important reason to have a lawyer for your car accident demand letter is the timing of your letter. You need to send your letter at the right time. Missing deadlines can mean missing the window to file your case. A lawyer knows the deadlines, and they know how to time your letter for maximum impact.
Contact Us
When you choose Bobby Jones Law, you have an experienced lawyer handling all aspects of your case. We write demand letters on behalf of our clients. Call or message us now.
