[email protected] | November 23, 2020 | Personal Injury

Attorney

A personal injury settlement demand letter is only as strong as the proof you attach to it. The letter tells the insurance company what happened and how much you’re asking for. The records behind it are what make the number believable.

When someone else’s carelessness injures you, you may be entitled to compensation for medical bills, lost wages, and the pain the injury caused. When the at-fault person has insurance, their insurance company handles your claim. It investigates the claim and negotiates any settlement, so it helps to know what to expect when dealing with an insurance adjuster.

When you finish your medical care and are ready to settle, you send a settlement demand letter to the insurance company. The letter states how much you believe you should receive for your physical injuries, emotional trauma, economic losses, and other damages.

Quick Reference Steps

Here’s the short version of the process, in the order it happens:

  1. Finish your medical treatment before you write anything.
  2. Request the crash or incident report.
  3. Request records and itemized bills from every provider who treated you.
  4. Gather proof of lost wages.
  5. Write the letter: facts, injuries, damages, why the other party is responsible, and your demand.
  6. Keep a full copy of the letter and every attachment.

Each step is explained below, along with the documents that go with it.

Can I Write My Own Settlement Demand Letter?

Yes. You can write a settlement demand letter and send it to the insurance company yourself.

If you’re not familiar with personal injury law, how non-economic damages are valued, or the types of damages available in a personal injury case, you may want an attorney to draft it. Cases involving catastrophic injuries, product liability, or wrongful death can also benefit from an experienced lawyer.

A settlement agreement is a binding legal document. Accepting a settlement and signing a release generally ends the claim. If you signed a release within 30 days of your injury without a lawyer, Maryland law lets you void it within 60 days by written notice and return of any money paid.

One exception matters if the at-fault driver’s policy is too small: before you accept a limits offer, Maryland law requires you to notify your own underinsured motorist insurer in writing so you don’t lose that claim. Send a copy of this offer via certified mail to your own UIM.

When our firm prepares a demand, a legal assistant requests the bills and records after the client reaches maximum medical improvement (the point where treatment is finished or the condition has leveled off). The assistant builds the demand package, and an attorney reviews it and confirms it with the client before it goes out.

The fee is 33.3% of the gross settlement before a lawsuit is filed. The fee increases to 40% once a lawsuit is filed, whether or not the case goes to trial. When there is a recovery, the case costs we advanced are reimbursed to us out of the gross settlement. If there is no recovery, you owe no fee and no costs. You pay nothing unless we recover compensation for you.

What Is Included in a Settlement Demand Letter?

A settlement demand letter has several sections. Each one carries specific information about your claim, and each one should point to a document that backs it up.

General Information

In the heading, include your name and contact information. Add the at-fault party’s name, the insurance policy number, and the claim number. Identify every party to the claim with their role clearly noted (for example, claimant or insured).

Summary of Facts

The next section describes the people involved in the accident. You may not know much about the person who caused it. Focus on yourself, including your job, age, and family, because those details show how the injury changed your life.

This section also summarizes how the accident happened. Keep it short and factual, and point to the police or accident report.

For a crash investigated by the Maryland State Police, the agency says to wait at least 10 days before requesting the report, and the request form carries a $4 search fee.1

For crashes in Baltimore City, the Baltimore Police Department Central Records Division provides the report instead.1

Injuries

Describe your injuries, and remember that you need medical evidence to prove them. Refer to the medical records as you describe each one.

You have a right to your own records. Under Maryland law, a health care provider must give you a copy of your medical record within a reasonable time after you ask in writing.2 Send that written request to every provider, including the ambulance company, the emergency room, and physical therapy.

List each injury in the order it was diagnosed. Early records are important evidence that ties your injuries to the accident, but they aren’t the whole picture. A concussion or traumatic brain injury (TBI) may not be diagnosed on the first day.

Damages

Damages are the losses the insurance company must pay. Maryland law gives you a ready-made way to organize them.

When a Maryland judge or jury decides a personal injury case, it has to break the award into past medical expenses, future medical expenses, past lost earnings, future lost earnings, noneconomic damages, and other damages.3 The law doesn’t require a demand letter to follow that structure, but using it puts your claim in the same form a jury would see.

The same statute defines economic damages as loss of earnings and medical expenses.3 In plain terms, the statute’s two categories are your medical bills and your lost wages. Put the itemized bill from each provider next to its total, and support lost wages with pay stubs or a letter from your employer.

Be careful with extra expenses. Costs like in-home care or rides to treatment are not standard recoverable damages without specific physician documentation. If you claim them, attach the doctor’s order and your receipts.

Damage to your car is a separate claim. Property damage and bodily injury claims are handled separately, so keep repair costs out of your injury numbers.

Damages also include non-economic losses, often called “pain and suffering.” Maryland’s statute lists pain, suffering, inconvenience, physical impairment, disfigurement, and loss of consortium among them.4 Describe how your injuries affect your daily activities and your relationships with family and friends.

Pain and suffering damages cover both the physical pain and the limitations and restrictions in daily life caused by the injury. Be specific. “I couldn’t lift my daughter for six weeks” says more than “my life was affected.” It’s the hardest part of the letter to put a number on, so read how pain and suffering damages are calculated before you choose a figure.

Maryland caps noneconomic damages based on the date of the accident, not the date of your letter. The cap is $965,000 per injured person for causes of action arising October 1, 2025 through September 30, 2026, and $980,000 for those arising October 1, 2026 through September 30, 2027.4 Maryland does not cap economic damages such as medical bills and lost wages.

This section explains why the insured person is responsible for your damages. What did they do to cause the accident, and why was it negligent or reckless? You’re arguing the four elements of a negligence claim:

To hold the other person responsible, you have to prove each element of fault and liability.

Maryland adds a rule that makes your wording matter. The state still follows contributory negligence, which means that if your own carelessness helped cause your injury, you can be barred from recovering anything. In Coleman v. Soccer Association of Columbia, the Court of Appeals of Maryland (now the Supreme Court of Maryland) declined to change that rule. The injured plaintiff recovered nothing.5

That’s why your letter should never concede blame. A line like “I stopped too fast” can turn into a contributory negligence argument against you.

Demand for Settlement

The last section states the amount you’re asking for to settle the claim. That figure should cover all of your damages.

You can ask for a response by a specific date. Keep your own filing deadline in mind either way. Before you mail the letter, make a full copy of it and every attachment. If a dispute comes up later, you’ll need to show exactly what you sent.

When to Send the Letter and What Happens Next

Send the letter after your treatment is finished and you have every bill, record, and lost-wage document. Sending it early locks in a number that leaves out the rest of your care.

Don’t let that wait run too long. In Maryland, a civil action generally has to be filed within three years from the date it accrues, and a demand letter doesn’t pause that clock.6 Check the Maryland filing deadline for your situation.

A first offer below your demand starts settlement negotiations, where new evidence gives the adjuster a reason to move. When an offer arrives, read up on whether to accept a settlement offer from the insurance company before you sign anything.

If the claim is denied, ask for the reason in writing. Maryland treats an insurance company’s failure to promptly provide a reasonable explanation for a denial, when requested, as an unfair claim settlement practice.7 The Maryland Insurance Administration enforces that rule, and it doesn’t replace a lawsuit or extend your deadline.7

Can I Get Into Trouble Writing My Own Settlement Demand Letter?

Keep in mind that the insurance company can use what you say in the letter against you. You could hurt your chance of full compensation if you word the letter carelessly or hand the insurance company a reason to deny the claim.

Watch for these mistakes before you send it:

  • Softening the facts with phrases that suggest you shared the blame
  • Listing an injury the medical records don’t support
  • Leaving a gap in treatment unexplained
  • Sending the letter before treatment is finished
  • Assuming the letter stops the three-year filing deadline
  • Adding car repair costs to the injury claim

Any one of these can lower an offer or give the insurance company a reason to deny the claim.

It can’t hurt to talk with a personal injury lawyer before you send your settlement demand letter. An attorney may spot something that helps you recover the compensation you need.

Frequently Asked Questions

What documents should I attach to a settlement demand letter?

Attach the crash or incident report, the medical records and itemized bills from each provider, and proof of lost wages such as pay stubs or an employer letter. You can ask each provider in writing for your records. The Maryland State Police say to wait at least 10 days after a crash before requesting their report, which carries a $4 search fee.1

When should I send a demand letter?

Send it after your medical treatment is finished and you have every bill, record, and lost-wage document. Don’t let that wait run into Maryland’s three-year filing deadline for most injury claims, because a demand letter doesn’t pause the deadline.6 Filing a lawsuit is usually the only way to protect the claim when time is short.

Can what I write in a demand letter be used against me?

Yes, the wording can hurt your claim. Maryland follows contributory negligence, so if your own carelessness helped cause your injury, you can be barred from recovering anything. A sentence that suggests you shared the blame gives the insurance company a reason to deny the claim. Describe what happened in plain facts, and don’t apologize or soften them.

Is there a limit on how much I can ask for?

You can ask for any amount your proof supports. Maryland caps noneconomic damages based on the accident date: $965,000 per injured person for causes of action arising October 1, 2025 through September 30, 2026, and $980,000 for October 1, 2026 through September 30, 2027.4 Maryland does not cap economic damages such as medical bills and lost wages.

Should a lawyer send the demand letter for me?

You can send it yourself. A lawyer gathers the records, values the claim, and handles the negotiation. The fee is 33.3% of the gross settlement before a lawsuit is filed. The fee increases to 40% once a lawsuit is filed, whether or not the case goes to trial. When there is a recovery, the case costs we advanced are reimbursed to us out of the gross settlement. If there is no recovery, you owe no fee and no costs. You pay nothing unless we recover compensation for you, and the first consultation is free.

Contact the Baltimore Personal Injury Law Firm of WGK Personal Injury Lawyers Today For Help

If you’re getting ready to send a demand, or you already sent one and the offer came back low, talk to a Maryland injury lawyer before you sign a release. Most personal injury cases can be handled by phone, and you’re never required to come to our office.

Call (410) 837-2144 to schedule a free initial consultation. For more reading, browse our Baltimore personal injury resources or contact us online.

This content is marketing material and is not legal advice. Every case is unique and laws change frequently. Please contact our office to speak with an attorney about your specific situation before making any legal decisions.

Sources

  1. Maryland Department of State Police, Request Police Reports. States the 10-day processing wait, the $4.00 non-refundable document search fee for the motor vehicle report form, and that Baltimore City crash reports come from the Baltimore Police Department Central Records Division. Accessed 2026-09-18. https://mdsp.maryland.gov/community-services/request-police-reports
  2. Md. Code, Health – General sec. 4-304(a)(1), Maryland General Assembly 2026 Regular Session statute text. A health care provider must comply within a reasonable time after a written request for a copy of a medical record. https://mgaleg.maryland.gov/2026rs/Statute_Web/ghg/4-304.pdf
  3. Md. Code, Courts and Judicial Proceedings sec. 11-109(a)(1) and (b), Maryland General Assembly 2026 Regular Session statute text. Defines economic damages and lists the six categories a judge or jury must itemize in a personal injury verdict. https://mgaleg.maryland.gov/2026rs/Statute_Web/gcj/11-109.pdf
  4. Md. Code, Courts and Judicial Proceedings sec. 11-108, Maryland General Assembly 2026 Regular Session statute text. Subsection (a) defines noneconomic damages; subsection (b)(2) sets $500,000 for causes of action arising on or after October 1, 1994, increased by $15,000 each October 1 beginning in 1995. The $965,000 and $980,000 figures are derived from that arithmetic, not quoted from the statute. https://mgaleg.maryland.gov/2026rs/Statute_Web/gcj/11-108.pdf
  5. Coleman v. Soccer Association of Columbia (2013). The Court declined to abrogate contributory negligence; the plaintiff was barred from any recovery. https://www.mdcourts.gov/data/opinions/coa/2013/9a12.pdf
  6. Md. Code, Courts and Judicial Proceedings sec. 5-101, Maryland General Assembly 2026 Regular Session statute text. Three-year general limitations period for civil actions at law. https://mgaleg.maryland.gov/2026rs/Statute_Web/gcj/5-101.pdf
  7. Md. Code, Insurance sec. 27-303(6), Maryland General Assembly 2026 Regular Session statute text. Lists failure to promptly provide, on request, a reasonable explanation of the basis for a claim denial as an unfair claim settlement practice. A regulatory standard, not by itself a private cause of action; see also Md. Code, Insurance sec. 27-301(a)-(b), which states that the subtitle provides an additional administrative remedy and administrative remedies only, and neither provides nor prohibits a private right or cause of action (https://mgaleg.maryland.gov/2026rs/Statute_Web/gin/27-301.pdf). https://mgaleg.maryland.gov/2026rs/Statute_Web/gin/27-303.pdf