# Demand letter

> A demand letter sets out the facts, injuries and losses in a claim and asks the insurer to pay a stated amount. It usually starts settlement talks.

Canonical page: https://accidentclaimfacts.com/glossary/demand-letter/  
Last reviewed: October 29, 2026 by the Accident Claim Facts editorial team  
General information, not legal advice. Talk to a licensed attorney in your state.

## Quick answer

A demand letter lays out the facts of a claim, the injuries and the losses, and asks the insurer to pay a stated amount. It is usually written by a lawyer or by the injured person, and it normally opens settlement negotiations.

## In a car accident claim

Most demand letters are sent once treatment ends or the injured person reaches maximum medical improvement, so the full cost of the injury is known. A typical letter explains how the crash happened and why the other driver is at fault, describes the injuries and treatment, lists bills, lost wages and other losses with copies attached, and names an amount and a date to respond.

Some demands carry legal weight. A time limited demand must be accepted within a stated period, and some states set rules for it; in Missouri, it must stay open at least 90 days after the insurer receives it. When an insurer denies a claim or offers less, the NAIC model law expects it to give a reasonable and accurate explanation of the basis for a denial or a compromise offer. Our guide to the [demand letter](https://accidentclaimfacts.com/claim-process/demand-letter/) shows what to include, and [settlement negotiation](https://accidentclaimfacts.com/claim-process/settlement-negotiation/) explains what happens next in the [claim process](https://accidentclaimfacts.com/claim-process/).

## Example

> **Example:** After finishing physical therapy, a driver sends the other driver's insurer a demand letter with the crash report, medical records, itemized bills and a note from the employer about missed work. It asks for a stated amount and a reply within 30 days. The adjuster answers with a lower offer, and negotiation begins.

## Related terms

- [Time-limited demand](https://accidentclaimfacts.com/glossary/time-limited-demand/)
- [Settlement](https://accidentclaimfacts.com/glossary/settlement/)
- [Release](https://accidentclaimfacts.com/glossary/release/)
- [Policy limits](https://accidentclaimfacts.com/glossary/policy-limits/)

## FAQ

### When is a demand letter usually sent?

Many people wait until treatment ends, so the letter can include every bill and the long-term effects. It still has to go out early enough to leave time for a lawsuit before the state's deadline.

### Do I need a lawyer to write a demand letter?

No. Anyone can send one, and many small claims are handled this way. Our guide to [handling a claim without a lawyer](https://accidentclaimfacts.com/choosing-a-lawyer/handling-a-claim-without-a-lawyer/) covers when that can work.

## Sources

- [Cornell Law School, Legal Information Institute, Wex: demand letter](https://www.law.cornell.edu/wex/demand_letter) — general definition and purpose
- [Revisor of Missouri, RSMo § 537.058](https://revisor.mo.gov/main/OneSection.aspx?section=537.058) — time-limited demand requirements
- [NAIC, Unfair Claims Settlement Practices Act (Model 900), Sec. 4](https://content.naic.org/sites/default/files/model-law-900.pdf), checked October 29, 2026