Your lawyer should tell you his demand. The practical problem with that is that most clients will then assume they are entitled to no less and anything less will be deemed to be negligence on the part of the lawyer. that is why he doesn't want to say. You will then hold him to that high figure which will likely mean the case will not be settled.
Full Answer
Although the UIM insurer is your own insurance company, you are put in the position of being adversaries with a UIM claim (or a UM claim). You must have an experienced personal injury lawyer helping you with this claim to get a fair resolution.
But does the insurer owe the undisputed amount in Uninsured Motorist (“UM”) or Underinsured Motorist (“UIM”) claims? In this article, I explain that, even though there is no California law requiring this result, the general principles that govern first-party claims dictate that an insurer does owe the undisputed amount in UM or UIM cases.
Do not make your initial settlement demand outrageously high, because the adjuster will probably see through that tactic. When the insurance adjuster responds to your demand letter, he or she will likely just come back with an outrageously low number, and you will be back at square one.
Putting together and sending a demand letter to the other side is a crucial step toward settling a personal injury case. And a demand letter typically closes with a statement of the dollar amount that you'll accept in order to resolve your injury claim and release the other side of any liability.
After a car accident, if you're making a claim under the uninsured motorist (or underinsured motorist) provision of your own car insurance policy, at some point you may need to spell out your side of the situation in a demand letter.
In the best-case scenario, the insurance company will respond to your demand letter within 30 days. However, you generally have to wait anywhere from a few weeks to a couple of months because no law sets a deadline.
In civil cases where one party has been wrongfully injured by another, a settlement demand letter is prepared by your attorneys to effectuate a reasonable settlement of the claim outside of court and the filing of a civil lawsuit.
In personal injury cases, a demand letter is a request to the insurance company or to the wrongdoer whereby the victim seeks compensation for the injuries sustained. The demand letter is an attempt to settle the matter informally, before a lawsuit is initiated.
If a letter of demand is ignored or unanswered, you should consider sending one final demand letter. This is usually a very short and sharp letter which annexes your previous correspondence and gives the party a further seven days to comply with the demand.
The Results of a Demand Letter Bottom line: you should generally not expect a demand letter to yield a quick and effective resolution, except in the rarest of cases where the stars align (enormous damages, clear liability, and reasonable defendant and opposing counsel on the other side).
The negotiation process typically starts with your lawyer providing a written proposal for settlement to the insurance adjuster or the defendant's lawyer. The adjuster or lawyer will respond to your lawyer either in writing or over the phone.
Send a Detailed Demand Letter to the Insurance Company Because the insurance company will likely reply with an offer for an amount lower than what you've asked for in the demand letter, you should ask for between 25 and 100 percent more than what you would be willing to settle for.
After you send a demand letter, one of several things can happen: The insurance company accepts your demand, and the settlement goes forward. You'll receive the compensation you asked for and sign a release of liability in exchange.
An initial demand is a unique quagmire and conundrum where parties cannot just reveal their bottom lines, but at the same time, are positioned to actually benefit the most from the lowest acceptable dollar figures.
If you disagree with an individual or a company, and informal efforts to resolve your dispute fail, you should write a demand letter. It may help persuade the other person to give you what you want. Before you start writing the letter, think about your relationship with the person who owes the money.
A demand letter to an insurance company must contain; A clear description of the physical facts of the case. The right way to do that is to answer the 5 W's; Who, What, When, Where and Why? Details on what your injuries were and are. An explanation on why the other person is legally responsible for your injuries.
If you are dissatisfied with communications or services of your attorney you should state that directly to him or her and, if following frank communication you cannot agree, you should consider hiring different counsel.
In addition you can ask for a copy of your file which an attorney in California is obligated to provide you.
Generally, UM/UIM claims are governed by the Uninsured Motorist Act and the California Insurance Code. This article is not an exhaustive summary of those statutes. Rather, the intent is to provide an overview of the basic rules and authorities, the “ABCs,” to demystify the often-confusing nature of UM/UIM claims.
The minimum limits for liability coverage in California are $15,000 for the bodily injury or death of one person in any one accident and $30,000 for the bodily injury or death of two or more persons in any one accident. (Veh. Code, § 16056, subd. (a).)
Under the clause, a person may recover damages from an insurer only if that person would be legally entitled to recover those damages in tort directly from the owner or operator of the uninsured vehicle.
Lawyers have different strategies. Most will shoot for the moon, and if they only reach the stars, they are doing well.
The short answer is some do and some don't. I include a nice, high demand usually.
Your choice of words is interesting. Why have you called the letter a "demand letter"? If no sum or policy limits is demanded, it is not a demand letter.
Some attorneys do demand a certain inflated amount and some attorneys don't. It is a tactical decision
With law, as it's a gray field and filled with opinions, there are many ways to skin a cat... and the same skinner may use a different technique on different cats... for the record I love cats... but I did not make up the old adage...
The above attorneys are correct. Preference/strategy/attorney style and case factors can all weigh in on not including a demand amount. Personally, I have always included a demand amount. You should set an appointment with your attorney to discuss this immediately.
I often send demands without a specific figure. Often we don't know what the policy limit is. Im finding that often the amount demanded means nothing to the ins co. They evaluate the claims using their own methods, and make offers or not, almost irrespective of the demand.
If they don’t resolve at the settlement demand stage, then the first thing your UIM insurance company will do is submit the file to one of their experienced attorneys. Although the UIM insurer is your own insurance company, with a UIM claim (or a UM claim), you are put in the position of being adversaries.
Underinsured motorist (UIM) coverage can help cover this inadequate coverage gap. The way it works is this: If your UIM coverage limits are greater than the bodily injury liability limits of a negligent driver who causes you injury, then – once the liability policy limits are exhausted -- you can make a claim against your UIM coverage ...
It is very difficult as a personal injury attorney to have to tell a client who has suffered a serious injury that the $15,000 minimum coverage is simply all that is available to compensate them for life-altering injuries.
For the same reasons that uninsured motorist coverage is generally a good thing to purchase as much of as we can afford, underinsured motorist coverage is also desirable. This type of coverage directly protects us, our vehicle passengers, and our resident family members from going inadequately compensated when a negligent driver injures one ...
You definitely need an attorney to do that professional job for you. Doing it right is harder than it looks.
Texas Lawyer here...and I see you are in Washington. You state that you want to make a claim for UIM limits.....here in Texas... the UIM claim (underinsured limits claim) usually settles or pays out after the primary claim (the person that caused your damages) has settled their claim (usually for their policy limits).
You sound like a sophisticated individual (using the term MMI for Maximum Medical Improvement) and I suspect it may be best if you schedule an appointment with a personal injury attorney. The fact your insurance carrier only offered $9,000 with $20,000 in medical expenses is a sign that you may need an advocate.
To arrive at the final number for your demand, review how the personal injury damages formula works. Then plug in the figures for your medical treatment and lost income, and choose a higher or lower range of the formula, whichever is more realistic given a number of key factors:
In the last paragraph of your letter, demand a specific sum of money as total compensation for your pain and suffering, lost income, and other losses (all of which are considered your " damages ").