A demand letter is the written package that asks the at-fault driver's insurer to pay a specific amount to settle the injury claim. It lays out fault, injuries, treatment, bills, lost income, and the evidence, and it starts the negotiation.
Timing comes first. The demand usually goes out once treatment is finished or the doctors can describe what the future holds, because a claim cannot be valued well while the medical picture is still changing. Sending it too early risks settling before a surgery recommendation or a permanent restriction is known.
A strong demand is built from records, not adjectives. It includes the crash report and photos, witness information or video on fault, the medical records and itemized bills, proof of lost earnings, and a description of how the injury has changed your daily life. Texas counts only medical amounts actually paid or incurred under Civil Practice and Remedies Code section 41.0105, so the bills are presented accordingly.
A written demand can also start the clock on interest. Under Finance Code section 304.104, prejudgment interest in a personal injury case begins to accrue on the earlier of the 180th day after the defendant receives written notice of the claim or the date suit is filed, although it does not apply to future damages.
When the injuries plainly exceed the at-fault driver's coverage, the demand can be structured as a Stowers demand: an offer within the policy limits that, if unreasonably refused, can expose the insurer to a judgment above its limits. That requires careful drafting and enough supporting evidence.
The insurer's first answer is usually lower than the demand. Negotiation follows, and you decide whether to accept any offer. Owsley Law Firm prepares and negotiates demands for clients across Texas, with no fee unless it wins.
What to do, step by step
- Finish treatment or get a doctor's statement of future care.
- Gather all medical records and itemized bills.
- Collect wage proof and photos of the injuries over time.
- Send the demand with a clear amount and a reasonable deadline to respond.
Liens and reimbursement claims should be identified before the demand, so the settlement accounts for hospital liens, health plan claims, and Medicare or Medicaid interests.
The demand should match the coverage. If the injuries exceed the at-fault driver's limits, the strategy turns to a policy limits demand and to your own underinsured motorist coverage.
If the insurer does not respond reasonably, the next step is usually a lawsuit filed before the two-year deadline, followed by discovery and often mediation.
Mistakes that cost people money
- Sending a demand before the medical picture is clear.
- Leaving out bills or records that support the amount.
- Accepting the first counteroffer without understanding the net after fees, expenses, and liens.
Related questions
How long does the insurer take to answer a demand?
There is no statutory deadline for the other driver's insurer. Many respond within weeks; a demand usually sets a reasonable response date.
Should I write my own demand?
For a small claim, some people do. For anything involving ongoing care, permanent injury, or limited coverage, counsel usually makes a meaningful difference.
Does the demand amount limit what I can get at trial?
No. A settlement demand does not cap what a jury may award if the case is tried.
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