What Is a Settlement Demand Letter?

If you have sustained an injury due to someone’s fault, you can use a demand letter to obtain compensation from the liable party. You are probably eager to settle your case as soon as possible, and a demand letter gets you one step closer. However, it is imperative that you consider any offer carefully and do NOT accept a settlement until you are sure it is fair and meets your recovery needs.

If you are not sure whether a settlement offer is enough or the at-fault party refuses to make a good faith offer, contact an injury attorney near you right away.

Many insurance companies force cases into litigation by failing to provide a fair settlement offer until a victim files a lawsuit. Look for trusted personal injury lawyers in St Louis who can provide legal guidance and advocacy both in court and out of Ask Burger Law lawyers questions about your case for free now at (314) 500-HURT.

Here’s what you need to know about demand letters in personal injury cases.

Advantages of a Settlement Demand Letter

A settlement demand letter allows both parties to resolve their issues outside court without litigation or trial. If the at-fault party is responsive, they may be willing to pay the injured party, though this does not mean that they will agree to the settlement amount requested.

You need the help of an attorney to examine whether the tabled proposal will match your losses and make you whole again. It is common for the insurance company to offer a low settlement that does not adequately compensate you for your injuries and damages.

The decision of whether to accept a settlement offer ultimately lies with you.

“Did you know you don’t have to pay taxes on your personal injury settlement? That applies to compensation for future earnings, too. There are exceptions, but most personal injury settlement money including lost future earnings are meant to restore what you have lost so the IRS does not consider your settlement taxable income. This applies to state income taxes in Missouri too, but do your due diligence because there can be some exceptions and state laws differ.”

Gary Burger

Personal Injury Attorney

A lawsuit can be stressful, drawn out and labor-intensive but can result in a great judgment when handled by trial-experienced attorneys like Burger Law’s. If the insurance company refuses to negotiate an adequate settlement following your demand letter, it may be time to hire a lawyer to help you file your lawsuit.

Here are a few benefits of a settlement demand letter:

• Saves time: If the at-fault party cooperates with the demands of a settlement demand letter, you’re likely to recover damages faster than filing a lawsuit with the Court and proceeding with litigation. Usually, a settlement demand letter gives the at-fault party a reasonable but short window to settle the matter.
• Reduced costs: Taking a case to trial requires significant legwork and expenses, including court fees and litigation costs for depositions, experts, etc. Compared to trial, settling a case with a demand letter only requires a small fraction of the time and effort — and, therefore, money. Hefty court and litigation costs will reduce your settlement amount, so remember to take that into account when deciding what to do.

Speak to an Experienced Personal Injury Attorney to Discover Your Options

If the insurance company fails to make a fair settlement offer on your claim, you can file a personal injury lawsuit to pursue the full compensation you deserve. A demand letter could help you reach a fair settlement agreement outside of court, but it is best to hire an attorney first. They will handle everything on your behalf and determine which course of action, including a settlement demand letter, is best for your personal injury case.

Hire the personal injury legal team with over two decades of experience, more than $200 million recovered for their clients and a history of tough trial wins. Burger Law attorneys and paralegals will answer your questions and discuss your case for free today at no obligation to you.

Contact us online or at (314) 500-HURT for a free consultation.

Gary Burger

Founder | Injury Attorney
Gary Burger has dedicated his career to standing up against bullies. The founder and principal attorney of Burger Law | St. Louis Personal Injury Lawyer has helped hundreds of Missouri and Illinois individuals and families recover th …
Years of experience: 30 years
Location: St. Louis, MO

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