What happens during the demand letter phase?

During the demand letter phase, your attorney prepares a comprehensive package that includes a detailed account of the accident, evidence of the other party's fault, all medical records and bills, documentation of lost wages, and a calculation of your pain and suffering. This demand is sent to the at-fault party's insurance company with a specific dollar amount for settlement. The insurer then has a period to respond—typically with a counteroffer. This begins the back-and-forth negotiation process that leads to either a settlement or, if the offer is inadequate, filing a lawsuit.