When going through a personal injury case, it’s crucial to be thoughtful about the demand letter that you send before you send it.
Pay particular attention to the end of the letter because that’s where you should stipulate the exact amount that you’re willing to accept in order to relieve the other party from liability. But, you can’t just come up with this dollar amount.
Read on as we explain how to come up with the correct settlement amount for your case.
- Start with a Bigger Number Than What You Want
The demand letter often begins with a compensation request from the claimant. Note that this is the beginning of the negotiation process so you should start with a slightly higher amount than the number that you actually want.
You have to start high so that you can start the negotiation process and end it amicably for both parties. If you start the process with a low amount or the exact amount that you’re looking to get, you might end up with a less than satisfactory result.
When you start high, you’re able to go through the negotiation process relatively calmly knowing that no matter how much bluffing you go through you’ll end up with an amicable number.
The amount of negotiating that you’ll do throughout the process will depend on the insurance adjuster that you’re working with as well as other unique variables of your case. This includes the effects of your injuries and the level of liability.
- Don’t Exaggerate the Number
Now, while it’s important to start the settlement negotiations on a high note, you shouldn’t start with ridiculously high demand. This is a scammy tactic that can get you in trouble with the insurance adjuster.
Ideally, your demand letter amount should be higher than your original or actual claim amount, but not so high that it’s hard to believe. The general rule of thumb is to make your initial offer 75% to 100% higher than your actual amount.
For instance, if your original claim amount is $1,500 then you should start the negotiation process with an amount of $3,000. If your actual claim amount is $5,000 then you should start the negotiation process with $10,000.
Of course, the insurance adjuster will take the amount you give him at face value while realizing that you’re aiming for a relatively high amount. However, it also shows that you’re giving the adjuster some wiggle room. Consult with an Atlanta personal injury lawyer to help you come up with a fair amount.
- Include the Amount in the Demand Letter
The final part of a demand letter, in the final paragraph to be specific, is where you should state the exact amount of money that you demand as compensation for losses such as lost income, pain and suffering, and other damages.
This part comes in the end because before that you need to specify exactly why you feel deserving of this amount and the events that led up to the letter in the first place.
In great detail, write the amount of damage that was done by the incident, including the amount of pain caused, the money you have, or will spend on things like recovery, treatment, and insurance, in order to justify your demand.