How to Write a Demand Letter to Your Insurance Company

Last Updated on December 29, 2025

Auto insurance is designed to protect you financially after a crash. But even when you file a claim, you may run into delays, low settlement offers, or a denial you don’t agree with.

If you believe your claim was denied unfairly (or your payout offer is unreasonably low), a demand letter can help you clearly present the facts, document your damages, and request a specific resolution in writing—before you escalate the dispute further.

Note: This article is general information, not legal advice. If you have serious injuries, large damages, or you’re feeling stuck, consider speaking with a qualified attorney in your state.

Key Takeaways

• A demand letter is a formal, written request asking an insurer to reconsider a denial or increase an unreasonably low claim offer using clear facts and supporting documents.
• The strongest demand letters include claim details, a brief accident summary, a liability explanation tied to evidence, an itemized damages total, and a specific deadline for response.
• Send your demand letter in a trackable way (and keep copies of everything) so you can prove what you submitted and when.
• If the insurer still won’t resolve the issue, your next steps may include escalation to a supervisor, a state insurance complaint, or consulting an attorney for higher-stakes claims.

Start by Filing Your Claim Properly

The best way to avoid claim disputes is to set your claim up correctly from day one. Filing a claim properly and promptly makes it easier for the insurer to evaluate what happened and reduces the risk of a denial based on missing information.

At the Scene: What to Do (If You Can)

• Move to a safe location and check for injuries.
• Call police and request a report (this can matter later—see do you need a police report to file a claim?).
• Take photos/video of vehicle damage, the roadway, signage, and the surrounding area.
• Collect witness names and contact info (here’s how to get witness statements after a car accident).

As soon as you’re able, write down your own timeline of events while details are fresh. Save receipts, medical paperwork, rental car invoices, and any communication with the insurer.

Why Car Insurance Claims Get Denied or Underpaid

Not every denial is “bad faith.” Sometimes a claim is denied because of a real coverage issue, unclear fault, or missing documentation. Other times, the denial is based on incomplete information or a disputed interpretation of the policy.

If you’re trying to understand what might be happening in your case, start here: how and why insurers deny your claim.

Common Reasons Insurers Deny or Reduce Claims

• Coverage issues (lapse, excluded driver, excluded use, or the loss isn’t covered)
• Disputed liability (the insurer believes you were at fault, partially at fault, or fault can’t be proven)
• Insufficient documentation (missing repair estimates, medical records, wage verification, photos, etc.)
• Disagreement on the value of damages (repair cost, total loss valuation, or injury-related costs)
• Timing issues (late reporting or not cooperating with reasonable requests)

The goal of a demand letter is to close these gaps by laying out the facts, connecting them to your evidence, and requesting a specific outcome.

Before You Write a Demand Letter

Don’t rush straight into a demand letter. Take 30–60 minutes to get organized so your letter is clear, supported, and hard to ignore.

1. Ask for the denial (or low offer) in writing. If you only received a phone call, request a written explanation.
2. Read your policy and declarations page. Confirm what coverages you have and the limits/deductibles that apply.
3. Make a document checklist. Gather police report, photos, witness information, repair estimates/invoices, medical bills, and wage proof.
4. Confirm what you’re asking for. Are you disputing fault? The dollar amount? The repair quality? Or a coverage interpretation?
5. Track your communication. Start a claim log with dates/times, who you spoke with, and what was said.

If your damages include medical costs and you’re unsure what coverage applies, it can help to review options like MedPay—especially if you already have health insurance: do you need medical payments coverage if you already have health insurance?

How to Write a Demand Letter to Your Insurance Company

A demand letter is a professional, evidence-based request for action. It should be firm, but not hostile. You want the adjuster (or claims manager) to quickly understand the dispute and see that you can support your numbers.

It also helps to understand how the claim is being evaluated. Your file is usually handled by a claims professional—here’s what auto insurance claims adjusters do and why documentation matters so much.

What to Include in Your Demand Letter

• Your identifying info: name, address, phone, email
• Claim and policy info: claim number, policy number, date of loss, vehicle details
• A brief, factual accident summary: date/time/location and what happened
• Liability explanation: why you believe coverage applies and why the denial/offer is incorrect (fault can be complicated—see determining fault)
• Damages and documentation: clear totals with supporting exhibits
• Your demand: the exact amount or action requested (reopen claim, re-inspect, supplement payment, authorize repair, etc.)
• A response deadline: a reasonable date (example: 10–14 business days) and how you want them to respond
• Attachments list: everything you’re including so nothing “goes missing”

Important: Stick to facts you can support. Avoid guessing, exaggerating, or making statements you can’t prove. If you don’t know something, say you don’t know yet.

What Damages Should You List?

Your demand letter should clearly separate and total your damages. Depending on your claim type, that could include:

• Medical expenses (here’s a guide to how car insurance can pay medical bills after an accident)
• Vehicle repairs (include invoices/estimates—see how to go through your insurance company to get repairs done)
• Lost income (use employer verification—see lost wages because of an accident)
• Out-of-pocket costs (medication, medical equipment, rides, rental car, towing, etc.)

Demand Letter Template

[Your Full Name]
[Your Address]
[City, State ZIP]
[Phone] | [Email]

[Date]

[Insurance Company Name]
[Claims Department Address]
Attn: [Adjuster Name], Claims Adjuster
Re: Demand for Reconsideration / Settlement
Claim Number: [#######]
Policy Number: [#######]
Date of Loss: [MM/DD/YYYY]
Insured Vehicle: [Year/Make/Model/VIN if applicable]

To Whom It May Concern:

I am writing regarding the above claim. I am requesting that you [reopen the claim / reconsider the denial / issue a supplemental payment / re-evaluate the settlement offer] based on the facts and supporting documentation attached.

1) Accident Summary
On [date] at approximately [time], the accident occurred at [location]. [Provide a brief, factual description of events. Keep this short and specific.]

2) Liability and Coverage Position
Your [denial / settlement offer] dated [date] states: “[brief quote or summary of the reason].”
Based on the evidence (see attached exhibits), I disagree because: [bullet-point explanation tied to documents, photos, report, etc.]

3) Injuries and Medical Treatment (if applicable)
As a result of the accident, I experienced: [injuries].
Treatment received: [providers/dates]. Relevant records and bills are attached.

4) Damages Summary
• Vehicle repairs: $[amount] (Exhibits A–C)
• Medical bills: $[amount] (Exhibits D–F)
• Lost wages: $[amount] (Exhibits G–H)
• Other out-of-pocket expenses: $[amount] (Exhibits I–J)

Total documented damages to date: $[total]

5) Demand
Based on the documentation provided, I am requesting:
• Payment in the amount of $[demand amount], and/or
• [specific action you want taken—inspection, re-review, correction, etc.]

Please respond in writing by [deadline date]. You may contact me at [phone/email]. If you need additional documents to complete your review, please provide a written list of exactly what is needed.

Sincerely,

[Your Name]
[Signature if mailing]

Attachments:
Exhibit A: [description]
Exhibit B: [description]
Exhibit C: [description]
(etc.)

How to Submit Your Demand Letter

Follow your insurer’s preferred process, but don’t rely on a single delivery method if the dispute is serious. A good approach is:

• Send by certified mail (or another trackable method) so you can prove delivery.
• Email a PDF copy to the adjuster and ask for written confirmation it was added to the file.
• Upload through the insurer portal if available, and screenshot the confirmation page.

Always keep the originals of your key documents and send copies. Save a complete PDF of everything you submit.

What If the Insurance Company Still Denies or Lowballs Your Claim?

If the insurer doesn’t respond, refuses to reconsider, or repeats the same position without addressing your evidence, you still have options:

1. Request escalation to a supervisor or claims manager and ask for a written re-review.
2. Submit a supplement if new documents exist (new bills, updated wage proof, additional repair findings).
3. Use the repair process correctly if this is a repair dispute. If your vehicle wasn’t repaired correctly after an insurance claim, document the issue with the shop and insurer immediately.
4. Consider a state complaint if you believe the claim handling is unfair, unreasonably delayed, or inconsistent with the policy.
5. Get legal advice if the dispute involves significant injuries, large dollar amounts, or possible bad faith.

Do You Need a Lawyer?

Many small, straightforward claim disputes can be resolved without an attorney. But hiring legal help can make sense when the stakes are high or you’re not being taken seriously.

If you’re not sure when it’s worth it, see when to hire an auto insurance lawyer. A lawyer may also help if you received a settlement offer that’s too low or you’re evaluating bigger next steps like suing your insurance company.

Before signing anything, ask about fee structure, expected timelines, and what documents they’ll need from you. Many attorneys offer an initial consultation so you can understand your options.

FAQs on Writing a Demand Letter to an Insurance Company

Final Tips for a Stronger Demand Letter

• Be concise: stick to facts, dates, totals, and exhibits.
• Organize attachments: label exhibits and reference them in the letter.
• Use a clear deadline: ask for a written response by a specific date.
• Keep everything: copies of your letter, proof of delivery, and your claim log.

A well-written demand letter won’t guarantee a payout—but it does put your position on the record, strengthens your negotiation leverage, and makes it easier to escalate if the insurer refuses to handle the claim fairly.