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Insurance Demand Letter Response Time

by John Gomez | Last Updated: September 9, 2022

Suppose you were injured in an accident due to someone else’s negligence. In that case, you may be able to collect monetary compensation to help you pay for medical expenses, lost wages, and other damages. If you find yourself in this situation, it’s important to speak with a lawyer as soon as possible to discuss your options. Whether you decide to file an insurance claim or end up needing to file a personal injury lawsuit, an insurance demand letter is an important step that an attorney can assist you with.

What Is an Insurance Demand Letter?

An insurance demand letter is sent to the insurance company after an accident by the victim or their attorney. The letter requests a certain amount of compensation for injuries sustained and other expenses that were incurred as a result of the accident.

The purpose of the demand letter is to resolve the issue without having to file an official lawsuit. Suppose you can reach an agreement with the insurance company by sending a demand letter. In that case, this can end up saving you significant time, stress, and money, as it’s almost always favorable to settle a claim outside of court than to take it to trial.

What Happens After a Demand Letter Is Sent?

Once you send your demand letter, the insurance company has a few different options.

  1. Demands are accepted. The insurance company has the option of accepting the terms of your demand letter and moving forward with a settlement. You would be required to sign a release of liability, meaning you can’t sue them, in exchange for receiving the compensation you demanded.
  2. Counteroffer. Another option is for the insurance company to make a counteroffer. If they want to negotiate but aren’t satisfied with your requests, they will come back and tell you what they’re willing to pay. You can decide to accept their counteroffer, or you and your attorney can continue negotiating. If you aren’t able to reach an agreement after a few rounds of negotiation, you can decide to file a personal injury lawsuit.
  3. Demands are denied. Finally, a possible outcome is that the insurance company flat-out denies your request and insists that they will pay you nothing. Most insurance companies would prefer to settle a claim outside of court, so they rarely deny a claim without any further discussion.

How Long Does an Insurance Adjuster Have To Respond?

When you send a demand letter to an insurance company, there is no deadline by which they must respond. In fact, they aren’t required to respond to your demand letter at all. It could take the insurance company a few weeks to a few months to respond, if they respond at all.

Keep in mind that you can set a timeline in your demand letter. For example, if the insurance company doesn’t respond to your demand letter in 30 days, you will file a personal injury lawsuit. It’s difficult to say if this will actually get them to respond sooner, but it’s certainly a tactic worth trying.

Factors That Influence Insurance Demand Letter Response Time

It can take anywhere from two weeks to one year for an insurance company to respond to your demand letter – if they ever respond. Typically, the more complex the case, the longer it will take for the insurance company to respond. Factors that influence the case complexity and response time include the severity of injuries, the number of medical bills, the size of the insurance company, the amount of money requested in the demand letter, and the limits of the insurance policy, among others.

The insurance company will have to investigate and make their own determination of how much they think you’re entitled to. To do this, they need to spend some time thoroughly looking into what happened.

What To Do if the Insurance Company Ignores You

If you send a demand letter to the insurance company and they ignore it, you still have options. The first thing you should do is collaborate with your attorney to come up with a plan. Next, your attorney can send a follow-up letter stating that if no response is received within X number of days, you will be filing a lawsuit. You want the insurance company to respond because it’s easier than having to file a lawsuit, which is why it’s so important to consult with an attorney instead of sending a demand letter on your own.

Contact Gomez Trial Attorneys For Help

The lawyers at Gomez Trial attorneys understand the importance of obtaining the compensation you deserve to help you pay for medical expenses and lost wages. We have experience handling all types of insurance claims and will do whatever it takes to help you get what you deserve.

Drafting a perfect demand letter is very nuanced, so it’s important to hire a firm with experience. If you need assistance, contact us today to schedule your free consultation by calling (619)-237-3490 or by contacting us online.

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