What Is The Insurance Demand Letter Response Time?

August 11, 2021

After drafting and sending a demand letter, waiting for the insurance company to respond can be one of the hardest parts of an injury claims process. Insurance companies can take weeks to respond to demand letters and, in some cases, may ignore them altogether.

Best Case Scenario

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. You have the option to stipulate a deadline for a response in your demand letter, but there is no guarantee that the insurer will meet it.

Factors That Can Impact Your Demand Letter Response Time

The following factors can influence how quickly or slowly an insurance company will respond to your demand letter:

  • Whether there has been previous communication. If there has already been communication between you and the insurer regarding your injuries and medical bills, they may respond to you quicker.
  • The size of your claim. The larger your claim, the more investigation will be required before approval. Similarly, if your amount of medical bills is much higher than the at-fault party’s policy limits, your claim will need high-level approval.
  • Pre-existing injuries. If you have any pre-existing conditions before the accident and/or treatment, this can delay an insurer’s response.
  • Size of the insurance company. The company’s internal circumstances, such as its size or the adjuster’s caseload, can impact a response. The larger the company, the more resources they have to reply to claims quickly.
  • The insurance policy’s limits. The larger the insurance policy, the greater the risk of financial liability for the insurer. As a result, they will thoroughly review and scrutinize your claim to minimize a potential payout.

Common Responses to a Demand Letter

Insurance companies are not required by law to respond to demand letters. If you do not receive a response after an extended length of time, you and your attorney may choose to proceed by filing a lawsuit. If the insurer does respond to you, it will typically consist of one of the following:

Rejection

Insurance companies routinely reject valid claims to deter claimants from pursuing compensation. This can be intimidating and does work, but this shouldn’t be a reason to give up. Have a personal injury lawyer review your rejection and determine whether you have a case.

Counter Offer

The insurer may respond to you with a counter settlement offer for a significantly lower amount than you requested. You have the choice to accept their offer, counter it, or file a lawsuit. However, this is a common tactic used by insurers, and negotiations often continue for some time, with counter-offers sent back and forth.

Acceptance

Acceptance is a very rare response to a demand letter, but the insurance company might accept liability and your requested compensation.

Need Help With a Claim?

If you are pursuing a personal injury claim, hiring a Minneapolis Personal Injury Lawyer to help you draft an effective demand letter and deal with the insurer is crucial. Call (800) 292-1979 today for a free consultation.