Insurance Demand Letter Response Time: How Long Does It Take for an Insurer to Respond?
If you’ve been injured in an accident caused by someone else, an insurance demand letter is often the first formal step toward recovering compensation. After the letter is sent, the most common question is simple:
How long does the insurance company have to respond? The short answer: there is no hard deadline—but there are predictable timelines, and delays often signal strategy rather than confusion.
Below is a clear breakdown of what to expect, what affects response time, and what to do if the insurer stalls.
Key Takeaways
- Insurance companies are not legally required to respond to a demand letter by a fixed deadline.
- Most insurers respond within 30–60 days, but complex cases can take longer.
- Larger claims, serious injuries, and higher policy limits usually mean slower responses.
- Silence is often a negotiation tactic—not a rejection.
- A lawyer can apply pressure, protect deadlines, and decide when delay justifies filing a lawsuit.
- Waiting too long without a strategy can weaken leverage or risk statute-of-limitations issues.
What Is an Insurance Demand Letter?
An insurance demand letter is a formal request for settlement sent to the at-fault party’s insurance company. It outlines:
- How the accident occurred and why the insured is at fault
- Injuries sustained and medical treatment received
- Economic losses (medical bills, lost wages, future care)
- Non-economic damages (pain, limitations, quality-of-life impact)
- A specific dollar amount demanded to resolve the claim
A demand letter does not start a lawsuit; it is a pre-litigation step meant to resolve the claim without court involvement. The goal is to settle the case before filing a lawsuit, saving time, expense, and uncertainty.
What Happens After a Demand Letter Is Sent?
Once the insurer receives the demand, one of three things usually happens:
- The Demand Is Accepted. The insurer agrees to pay the amount demanded. In exchange, you sign a release and the claim ends.
- A Counteroffer Is Made. This is the most common outcome. The insurer responds with a lower number to start negotiations.
- The Claim Is Denied or Ignored. Outright denials are less common early on. More often, insurers delay, ask for extensions, or go silent.
How Long Does an Insurance Company Have to Respond?
California law does not impose a fixed deadline for insurers to respond to a settlement demand, and in most states there is no statute requiring a response within a specific number of days. That said, insurers tend to follow predictable response patterns in practice:
- 30–45 days: Common for straightforward injury claims
- 45–90 days: More complex cases or higher-value claims
- Longer than 90 days: Often a strategic delay, especially in serious injury cases
Some insurers never respond until a lawsuit is filed.
Can You Set a Deadline in the Demand Letter?
Yes—but it’s strategic, not mandatory.
Many demand letters include language stating that if no response is received within 30 days, litigation will follow. This does not legally force a response, but it can create leverage, demonstrate seriousness, and preserve credibility if a lawsuit is later filed.
Empty deadlines hurt leverage. If you set one, you must be prepared to act.
What Affects Insurance Demand Letter Response Time?
Several factors influence how quickly (or slowly) an insurer responds:
- Severity of Injuries: Claims involving surgery, permanent injury, or future care take longer to evaluate.
- Amount Demanded: Higher demands often require supervisor or committee approval, slowing the process.
- Policy Limits: If damages clearly exceed policy limits, responses may come faster—or stall entirely.
- Disputed Liability: If fault is unclear, insurers delay while investigating or building defenses.
- Insurance Company Practices: Some carriers are simply slower and more bureaucratic than others.
What If the Insurance Company Ignores the Demand Letter?
Silence is common and does not mean the claim lacks value—it often reflects delay tactics or internal review. Even without a response, you still have options. If an insurance company ignores a demand letter, common next steps may include sending a follow-up demand with a firm litigation deadline, escalating the claim to a supervisor, or filing a lawsuit to force engagement and protect critical deadlines. At a certain point, continued delay works in the insurer’s favor, not yours, especially as the statute of limitations approaches and leverage begins to erode.
What Not to Do: Avoid repeatedly calling or emailing the adjuster demanding a response. Persistent pressure without leverage can weaken your negotiating position and signal urgency.
Does Filing a Lawsuit Speed Things Up?
Often, yes. Once a lawsuit is filed:
- Deadlines are imposed by the court
- Discovery forces evidence exchange
- Insurers reassess risk and exposure
- Settlement discussions often resume with urgency
Many cases still settle after suit, but from a stronger negotiating position. This is especially true in cases involving serious injuries or disputed liability.
Frequently Asked Questions
How long should it take to hear back after sending a demand letter?
Most insurance companies respond to a demand letter within 30 to 60 days, especially in straightforward injury claims. However, there is no legal deadline, and response times can be longer in cases involving serious injuries, disputed liability, or higher settlement demands.
What happens if the insurance company doesn’t respond in 30 days?
Nothing happens automatically if an insurer fails to respond within 30 days. Insurance companies are not legally required to reply by a specific deadline, but continued silence may justify escalating the claim, setting a firm litigation deadline, or filing a lawsuit to force engagement.
Is a delay in the insurer’s response a bad sign?
Not necessarily. Delays are common in higher-value or complex cases and often reflect internal review, supervisor approval, or negotiation strategy rather than a denial. That said, prolonged silence without explanation can signal intentional delay and should be addressed strategically.
Can a lawyer make the process faster?
A lawyer cannot force an insurance company to respond faster, but they can apply pressure, prevent delay tactics, and decide when waiting hurts your case. Legal representation also helps ensure deadlines are protected and negotiations move forward from a position of strength.
Can an insurance company ignore a demand letter forever?
Yes. Insurance companies are not legally required to respond to a demand letter, and some will delay indefinitely until a lawsuit is filed. This is why filing suit is often necessary to impose deadlines, preserve the statute of limitations, and force meaningful negotiations.
Talk to a California Personal Injury Attorney
Insurance companies move on their own timeline—not yours. If your demand letter is being ignored, delayed, or met with low offers, a personal injury attorney can help you decide when to negotiate, when to escalate, and when to file suit.
Free consultation. No fees unless we win.
