When Should You Send a Demand Letter After a Michigan Car Accident?
A demand letter usually comes after you have enough evidence to explain how the car accident happened, what injuries and losses it caused, and what compensation you are seeking. It often starts serious settlement negotiations, but it is not a lawsuit and does not guarantee that the insurer will agree to pay the amount requested.
Timing depends on the claim. Sending the letter too early may leave important losses undocumented, while waiting too long can create problems with legal deadlines.
After a car crash or other motor vehicle accident caused by someone’s negligence, filing an insurance claim can involve weeks of collecting records, documenting losses, and determining who was responsible. A demand letter brings that information together and tells the insurer what you are asking for to resolve the injury claim.
A demand letter after a car accident in Michigan needs to present the full effect of the crash with supporting medical, financial, and other evidence. A Michigan car accident lawyer can handle that work and advocate for fair compensation during settlement negotiations.
Key Takeaways About Michigan Injury Demand Letters
- A demand letter explains why the other party is responsible and what compensation you are seeking.
- The strongest demands are supported by records, bills, wage information, and other evidence rather than broad statements about the crash.
- An insurer may accept the demand, reject it, ask for more information, or make a counteroffer.
- Sending a demand letter does not extend Michigan's deadline for filing a lawsuit.
- PIP benefits and a claim against the at-fault driver are different claims, so the demand should make clear which losses it is addressing.
What Does a Demand Letter Do in a Michigan Injury Claim?
A demand letter is a written settlement proposal. It presents the facts supporting your claim, describes the losses caused by the accident, and asks the insurer or responsible party to pay a specific amount or otherwise resolve the claim.
It is not a court filing. You do not start a lawsuit simply by sending one, and the recipient does not have to accept your requested amount.
The letter gives the insurer a structured explanation of the claim and a chance to respond. It often becomes the starting point for negotiations.
A demand is usually aimed at the claim against the at-fault driver
Michigan's no-fault system separates several types of benefits and claims. Personal Protection Insurance, or PIP, may pay certain accident-related medical expenses, wage loss, and replacement services depending on your coverage.
A demand to the at-fault driver's insurer usually addresses damages that may be recovered from that driver. For pain and suffering after a car accident in Michigan, MCL 500.3135 generally requires death, permanent serious disfigurement, or a serious impairment of body function.
That distinction keeps the letter focused. A demand should not combine every insurance issue from the crash into a single unexplained dollar amount.
What Is in a Demand Letter for an Injury Claim?
A settlement demand letter should give the insurer the information it needs to evaluate the claim without burying the important points. The main pieces usually include:
| Part of the demand | What it includes | Why it helps |
| How the crash happened | A concise account plus supporting evidence, such as the police report, photos, witnesses, or video | Explains why the other party may be responsible. |
| Injuries and treatment | Injuries, treatment, medical records, and effects on work or daily life | Helps connect the crash to the harm you are claiming. |
| Financial losses | Bills, wage records, receipts, and other proof of loss | Supports the dollar amounts included in the demand. |
| Settlement request | The amount offered to resolve the claims covered by the demand | Gives the insurer a clear proposal to evaluate. |
When Is the Right Time to Send a Demand Letter?
There is no single date that works for every injury claim. A demand is usually more useful after there is enough information to understand the injuries, treatment, lost income, and other losses you are asking the insurer to consider.
That does not mean you always have to wait until every medical issue has ended. Some injuries require long-term care, and a claim may need to account for the long-term effects of car accident injuries before treatment is complete. The timing should fit the evidence and the legal deadlines in the case.
Do not confuse a demand deadline with the lawsuit deadline
A lawyer may give the insurer a date to respond to the demand. That is a negotiating deadline. It does not replace the legal deadline for filing a lawsuit.
MCL 600.5805 generally gives you three years after an injury to file an action for damages to a person or property in Michigan. MCL 600.5856 lists circumstances that can toll, or pause, certain limitation periods, and simply sending a settlement demand is not one of them.
PIP has separate deadlines. MCL 500.3145 sets timing rules for claims involving unpaid no-fault benefits. A demand to the at-fault driver's insurer should not cause you to overlook a separate deadline for pursuing benefits under PIP insurance in Michigan.
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How Does a Demand Letter Work After the Insurer Receives It?
Once the insurer receives the demand and supporting materials, an adjuster usually reviews the facts, coverage, medical records, claimed damages, and any dispute over fault. The insurer may then accept the proposal, reject it, request more information, or make a counteroffer.
That response begins the next stage of negotiations. A closer look at what happens after the demand can help explain why a demand letter is usually a starting point rather than the final step.
An insurer may ask for more information
A request for additional records does not necessarily mean the claim has been rejected. The insurer may believe it needs more documentation about medical treatment, prior injuries, lost income, fault, or another part of the demand before deciding what to offer.
The request should still be reviewed carefully. The question is whether the information is relevant and whether the insurer already has what it reasonably needs to evaluate that part of the claim.
The first counteroffer may be far below the demand
A demand states what you are asking for. A counteroffer states what the insurer is willing to pay at that point in the negotiation. Those positions may be far apart at first.
Understanding why the first counteroffer is low can help put that response in context. A low opening counteroffer does not tell you by itself what the claim will ultimately settle for, and it does not require you to accept or reject the entire process immediately.
Negotiations can continue
The parties may exchange offers, discuss disputed evidence, provide additional records, or participate in mediation. If a lawsuit is filed, Michigan Court Rules also provide for scheduling conferences and alternative dispute resolution procedures that can create additional opportunities to settle before trial.
Car, Truck & Motorcycle Accident Cases… It's All We Do.
If you have questions about a Michigan accident claim, call Kajy Law Firm at 248-702-6641 or contact us online for a free consultation. 18000 W Nine Mile Rd #1400, Southfield, MI 48075.
What a Demand Letter Cannot Do for You
A clear demand can organize a claim and begin negotiations, but it has limits.
- It cannot force the insurer to settle. The insurer can dispute fault, damages, causation, coverage, or the amount requested.
- It does not start a lawsuit. A complaint must be filed in court to begin the lawsuit itself.
- It does not stop the statute of limitations simply because negotiations are ongoing.
- It cannot fix missing evidence. A demand is only as persuasive as the facts and records supporting it.
- A settlement offer may come with a release. Read it carefully before signing so you know which claims you are giving up.
These limits are why the letter should be treated as part of the claim process, not as a shortcut around the evidence or the law.
FAQs About Michigan Demand Letters in Personal Injury Claims
Do I have to send a demand letter before filing a car accident lawsuit?
Not in every Michigan car accident case. A demand is commonly used to try to reach a car accident settlement in Michigan before or during litigation, but it is not the same as filing a complaint. The filing deadline still applies even if the insurer has not finished responding to your demand.
How much should I ask for in a demand letter?
The amount should be based on the damages the law allows you to pursue and the evidence supporting them. Medical records, wage loss, the effect of the injury, fault, available coverage, and other facts can all affect the settlement position. There is no reliable formula that produces the right demand amount for every case.
How long should I give an insurer to respond?
Demand letters often request a response by a specific date, but there is no universal response period for every Michigan injury demand. The amount of material being reviewed and the complexity of the claim can affect timing. A response date in the letter does not extend your deadline to file a lawsuit.
Can I send my own demand letter?
You can communicate directly with an insurer, but a settlement demand can affect how the claim is presented and negotiated. Before you send one, make sure the facts, damages, supporting records, and claims being resolved are clear. Avoid signing a release until you understand exactly what rights it gives up.
What happens if the insurer rejects my demand?
A rejection does not necessarily end the claim. You may be able to continue negotiating, provide additional evidence, use mediation, or file a lawsuit if the claim remains unresolved and the filing deadline has not passed. The best next step depends on why the insurer rejected the demand.
Build the Demand Around the Evidence
A strong demand letter does not need legal jargon or an inflated number. It needs a clear explanation of what happened, what the evidence shows, how the crash affected you, and what you are asking the insurer to do.
Kajy Law Firm focuses on car, truck, and motorcycle accident cases. If you need help presenting the claim before settlement negotiations begin, let a lawyer draft and send your demand.
Call 248-702-6641 or contact us online for a free consultation. No Fee Unless We Win.
Kajy Law Firm
18000 W Nine Mile Rd #1400
Southfield, MI 48075