The demand letter is the document that opens formal settlement negotiations. It is not a form letter. A well-constructed demand establishes credibility, documents case strength with evidence, sets a defensible anchor number, and creates the deadline pressure that motivates serious responses from the insurer.
Structure of an Effective Demand Letter
Section 1: Facts and liability. A clear, factual narrative of the accident: how it happened, who was at fault, and what evidence supports the liability determination. Reference the police report, witness accounts, dashcam footage, and any citations issued. This section establishes fault without revealing full trial strategy.
Section 2: Injuries and treatment. A chronological summary of injuries, diagnosis, treatment providers, procedures performed, and current medical status. State whether Maximum Medical Improvement (MMI) has been reached. If not, explain the expected timeline and remaining treatment.
Section 3: Damages calculation. Itemize economic damages with documentation attached: medical bills (by provider, date, and amount), lost wage verification (employer letter, pay stubs), property damage estimates. Noneconomic damages (pain and suffering) are stated as a separate category supported by pain journal excerpts, treating physician statements on functional limitations, and therapy records.
Section 4: The demand amount. A specific dollar figure. Vague language invites the insurer to set their own anchor. A demand that is too high loses credibility. A demand that is too low anchors below fair value. The demand is typically set to create room for negotiation while remaining defensible if presented to a jury.
Section 5: Response deadline. Typically 30 days. The letter states clearly that litigation may follow non-response or inadequate response.
Section 6: Documentation package. Attach all supporting materials: medical records and bills, police report, photographs, witness statements, employer verification, pay stubs, and any expert reports.
The Policy Limits Demand
When damages clearly exceed the at-fault driver’s policy limits and liability is established, a policy limits demand creates bad faith exposure for the insurer under O.C.G.A. § 33-4-7. This demand offers to settle all claims for the policy limits, includes all information the insurer needs to evaluate, provides reasonable response time, and specifies a date after which the offer is withdrawn. For the full bad faith analysis and how this demand creates leverage, see Insurance Policy Limits in Georgia Car Accidents.
For how settlement negotiations proceed after the demand letter, see Settlement Negotiations in Georgia.
This guide covers demand letters in Georgia car accident cases as of March 2026. Bad faith exposure for failure to settle within policy limits is governed by O.C.G.A. § 33-4-7. Laws change. This information is educational and does not constitute legal advice. If you need advice about your specific situation, consult a licensed Georgia attorney.
Last updated: March 2026
