The amount stated in a demand letter to an insurance company is such an important part of the negotiation process that it should be talked about more. If you come in with too low or high a number in your demand letter for a car or motorcycle accident, you stand to lose.
Depending on the number in the demand letter, you could be saying quite a few things.
I'm willing to accept a low amount.
The first thing that can happen is that you sell yourself short. The insurance company knows what they are willing to pay for your claim. If you demand an amount that is a lot lower, they will be very happy to settle, and you will lose out on some money. This often happens if you are neglecting to include some sources of damage in your claim. It can also happen when you're burnt out on negotiating and simply want to get some money in your pocket and call it a day.
I have no idea what is reasonable to expect.
If you come in with a number that is higher than any reasonable amount for your case, what you're saying is that you don't have a lot of experience with how the negotiation process works for car accidents. The insurance company can easily rebuff your claim altogether, saying that there's no way they will pay that amount. They are likely to come in with an offer that is quite a bit lower than what they were willing to pay initially, because they know that you don't have a platform for evaluating your insurance claim accurately.
I have correctly valued my claim and done my research.
This is the best possible outcome. If you know what amounts are reasonable to expect, then it shows that you have done your research. The insurance company can't pull the wool over your eyes. You are in a good place when it comes to negotiation.
Find an experienced car and motorcycle accident legal services team and let them handle the entire process of negotiating with the insurance company. Ask them specifically about the tools they use to assess the value of a car accident claim and what tactics they plan to use when negotiating with the car insurance company. The value of a good negotiator in this process cannot be overstated. You'll be glad you worked with a legal team.
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