If you’re staking a claim with an insurance company, you start the process with a demand letter. Negotiations will revolve around what you include there. We explain how to write an effective letter in this article, and provide a template at the end for reference.

What Is a Demand Letter to Insurance Company?

A demand letter to an insurance company is a formal demand for compensation. It covers all of the following:

  • The claim – a personal accident, car accident, or some other mishap.
  • The insurance company’s liability or exactly why they owe you money.
  • Your medical treatment or other costs, an exact amount.
  • Any related income loss and suffered damages.
  • Why you qualify to make the claim.

When and Why Do You Need a Demand Letter to Insurance Company?

There are several scenarios where you may need to send a demand letter:

  • Car accident.
  • Personal injury.
  • Truck accident.
  • Wrongful death.
  • Legal malpractice.
  • Medical malpractice.
  • Demand before a trial.

The demand letter notifies the insurance company that you expect money from them. If they don’t comply with the demand, you can undertake legal action against them. The letter acts as evidence in this case.

What Are the Components of a Demand Letter to Insurance Company?

Please note that we recommend consulting an experienced lawyer for large claims. For small claims, the specifics you include in the letter don’t matter so much. But for larger claims, you have to be careful. You may end up asking for too much or too little, which is a problem.

Ideally, here is what you should include in an insurance letter:

1. A description of your case

You need to describe your case as accurately as possible:

  • What happened, including when and where.
  • Your tangible losses – the damages, medical bills, repair costs, and everything that can be calculated.
  • Non-tangible losses – whether you missed your wedding or an impending business deal.

2. The claim or demand

Making a demand is tricky. You have to know exactly how much to ask, in line with the insurer’s policy and the damages suffered. If you ask for too little, you lose. If you ask for too much, they won’t settle.

Unless you know exactly how much you should ask for, it’s a good idea not to explicitly make a demand. You could just state your expenses and why you expect compensation and wait for the company to make the move.

If you’re confident about how much to expect, make the demand here. Come up with a specific figure and offer due date. If the company fails to settle by the due date, you can pursue legal action.

3. Supporting documents

Your claim has to be backed up by supporting documents. Every expense you mentioned needs a receipt or electronic statement. If there are documents or records about the mishap, you must include them. The same counts for letters, eyewitness summaries, photos, and videos.

4. Your intentions

Your letter should make your intentions clear. It’s a good idea to be firm about receiving compensation from the company. But it’s never a good idea to threaten legal action unless you mean it, especially if this is your first contact with the company.

We recommend giving them a chance to settle the claim before you escalate matters. As such, your letter should be polite and formal.

Don't forget to celebrate your signing experience!

CocoSign, is simply document signing for each business. You could build a stonger relationship and share your experience with each client and partner.

Get started now


Make sure you double and triple check your letter before sending it in. For small claims, it usually isn’t a problem, but for larger ones, it will be. Get your attorney to do it for you if you’re in doubt. You can also use our template to write an effective formal insurance demand letter.

CocoSign offers a wide variety of free letter templates for a range of legal and other scenarios on our website.


CocoSign represents a wide collection of legal templates covering all types of leases, contracts and agreements for personal and commercial use. All legal templates available on CocoSign shall not be considered as attorney-client advice. Meanwhile, CocoSign shall not be responsible for the examination or evaluation of reviews, recommendations, services, etc. posted by parties other than CocoSign itself on its platform.