A demand letter is the document that formally starts your injury claim. It goes to the at-fault party's insurance company and tells them what happened, why they're liable, and what compensation you expect. It's not a lawsuit — but it sets the tone for every negotiation that follows, and a poorly drafted one can actually weaken your position.
When to send it
Wait until you've reached maximum medical improvement (MMI) — the point at which your condition has stabilized and your doctors have a clear picture of your prognosis. Sending too early means you may not know the full cost of your injuries, which leaves money on the table. But you can't wait indefinitely. Arizona's statute of limitations for most personal injury claims is two years (A.R.S. § 12-542). If you miss that window, you lose your right to sue — and with it, most of your leverage. See our post on the Arizona statute of limitations for personal injury for the exceptions.
What a strong demand letter covers
Start with the liability statement: who was involved, when and where it happened, and why the other party is legally responsible. Follow that with a factual account of the accident, supported by police report numbers, witness information, and photos or video. Then document your injuries specifically — "L4-L5 disc herniation requiring six weeks of physical therapy" is more persuasive than "soft tissue injuries." Include all past medical expenses with supporting bills and records, projected future treatment costs, lost wages documentation from your employer, and a description in plain terms of how the accident has affected your daily life. Close with a specific dollar demand and a response deadline, typically 30 days.
Comparative fault and the demand letter
Arizona's pure comparative negligence rule (A.R.S. § 12-2505) means adjusters will often try to assign you a percentage of fault to reduce what they owe. A well-drafted demand letter anticipates those arguments and addresses them directly with evidence. See our post on Arizona comparative negligence law for how this plays out in negotiation.
What weakens a demand
Sending it before you know your full damages. Omitting documentation — every claim in the letter needs records, bills, or reports to support it. Exaggerating anything, because even small inconsistencies undermine credibility across the entire claim. Accepting the first counteroffer, which is almost always below fair value. And losing track of the two-year filing deadline while negotiations drag on.
You're not required to hire an attorney to send a demand letter, but injured people represented by attorneys consistently recover more — even after fees. Our car accident attorneys handle demand letters and settlement negotiations for injured Arizonans throughout Phoenix and Scottsdale on a contingency fee basis. No fee unless we win. Call (480) 418-SHER (7437) or reach out online.