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Being injured in an accident can be very stressful. Dealing with insurance companies can sometimes be even more stressful. One of the first steps in the insurance claim process is sending a demand letter to the insurance company related to your injury. Insurance companies can often take an excessive amount of time to respond.
If you are concerned about the response or lack thereof to your demand letter, our New Jersey personal injury attorney can review your case and answer your questions about how the demand letter process works.
What Is a Demand Letter?
A demand letter is a written statement addressed to an insurance company or liable party in which an injured person lists their compensation demands. The purpose of the communication is to inform the recipient that you are taking legal action to pursue compensation for your damages. Compensation includes medical bills, pain and suffering, lost wages, property damage, and more.
There is no legal requirement that the recipient responds to your demand letter within any specific time frame. As a result, you usually will not promptly receive a response from the recipient. In some cases, the recipient may entirely ignore your demand.
What Factors Affect Demand Letter Response Time?
Many factors can affect how quickly or slowly a party will respond to your demand letter. These include:
- Whether this is the first communication or there has already been communication. You may receive a quicker response if there is a history of contact with the insurer regarding your injuries and medical bills.
- The amount of your claim. The larger it is, the more the insurer has to investigate the situation before approving or denying a claim. The company may require a higher-level approval process if your claim exceeds policy limits.
- Your pre-existing conditions or injuries can also cause a delay.
- What company you are dealing with. Every company has different levels of organization, resources, amount of employees assigned to a particular division, and other internal complexities. Some companies are faster at dealing with claims than others, and this is unfortunately out of your control.
- Limits of insurance can also affect response time. The insurer has a higher risk when a larger insurance policy is involved. It is more likely to scrutinize claims to minimize how much they have to payout.
Because insurers are not required by law to respond to demand letters, you may have to file a lawsuit to preserve your rights.
Consult With an Attorney
Sending a demand letter is a fine-tuned skill and is only one of many steps in any personal injury case. Knowing how to deal with or respond to an insurance company is equally important. For these reasons, it is imperative to consult with an attorney who regularly handles personal injury matters and has experience working with insurance companies. Damages are often the most crucial aspect of your case. Time is limited to bring a personal injury claim in New Jersey. With some exceptions, you have two years to sue in New Jersey on a claim. Contact our office today for a free consultation.