Sending a demand letter is a significant milestone in car accident claims. Insurance companies should respond promptly so victims can move on from the incident and get the compensation they seek.
However, the insurance company can take weeks to respond and may even ignore your demand letter, making recovery impossible. The best outcome is to receive a response from State Farm within 30 days that favors you.
Are There Laws Regarding Demand Letter Deadlines?
Many car accident victims add a stipulation within the demand letter for a response. Adding the stipulation can help victims get a response, but there is no guarantee. Most car accident victims will wait weeks or months for an answer because there is no law governing demand letter response times.
State Farm is well-versed in handling claims and will typically send a response within a few weeks. Most of the time, adjusters will deny claims stating the injuries were not as severe as stated in the demand package or that fault is debatable. Once State Farm agrees to the demand, they will send a settlement check within two or three weeks.
On average, State Farm takes 67 days to respond to demand letters.
What Factors Can Impact My Response Time?
State Farm and other insurance companies will consider various factors when answering a demand letter. If there has been previous communication between the victim and the insurance company addressing injuries and medical expenses, the insurer is more likely to send a response. When the claim has high costs beyond the at-fault driver’s policy limits, the claim will need high-level approval, which can delay the response time.
The size of the insurance company also impacts the response time. The smaller the company, the longer the response time. State Farm is one of the largest insurance companies in the country, so this factor might not apply to your claim.
A claimant’s preexisting condition before the accident can delay the response time since it requires a more extensive investigation. Insurance policy limits will also play a role in the adjuster’s response.
What Response Can State Farm Send?
Receiving a response to a demand letter is a relief for some claimants, but a response is not always positive. When the insurance company does respond, there are three outcomes.
- The first response is a rejection that insurance companies use to deter claimants from pursuing compensation. Car accident victims can receive a rejection with a valid claim.
- Another typical response is a counteroffer from the insurance company significantly lower than the case’s worth. Claimants can accept the lower offer, file a counteroffer, or file a lawsuit in response.
- One final and rare response is acceptance of the demand letter. Receiving acceptance means the insurer accepts liability and agrees to the requested compensation.
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How Do I Get a Faster Response to My Demand Letter?
Give the adjuster two or three weeks to send a response, and then contact the claims department for clarification on the delay. The adjuster can respond by saying they need time to review the demand, and claimants can ask for an estimated date for a response. Confirming the date with a follow-up letter and calling again once it passes is beneficial.
Including an estimated response time in the initial demand letter can motivate insurers to respond faster, but your deadlines do not bind them. When following up with the adjuster does not result in a response, claimants can ask to speak to the claims manager or adjuster’s supervisor. Escalating the topic is tricky because some insurers will view this as an eagerness to settle and continue to offer low settlements.
Do Victims Have to Talk to Adjusters?
Car accident victims are under no obligation to give a recorded statement to a State Farm adjuster before speaking to a lawyer. The adjuster will pretend this step is necessary, but it is a trap to get the victim to admit to something they did not do.
Adjusters will craft questions in a form to warrant a response that is beneficial to them. The most beneficial answer is to tell them to handle all communications through the law firm. Claimants can inform the adjusters that they can check medical records and police reports for information.
Can State Farm Legally Ignore a Demand Letter?
Yes, State Farm can ignore demand letters. When an insurance company ignores a demand letter, a car accident lawyer can proceed by filing a lawsuit. The timeline will vary by case, and the insurance company can communicate with the lawyer before sending an official response to the demand letter.
It is vital to wait an extended period before seeking litigation options.
Is a Lawyer Necessary for a Demand Letter?
A lawyer can craft an inclusive demand letter detailing the claimant’s expenses from the accident and future prognosis. The time requirements of collecting information for a demand letter are cumbersome, and many claimants need help to handle these issues. There is a greater chance of a successful claim when working with a car accident lawyer.
Straightforward claims involving property damages and lost wages do not require the assistance of a lawyer, and State Farm will resolve these matters quickly. When a claim involves an injury, claimants must speak with a local car accident lawyer.
Negotiations are a necessary part of the claims process, and a lawyer has experience negotiating with insurance companies. Many lawyers are familiar with specific adjusters and know what buttons to push to get a resolution.
How Much Will Legal Representation Cost?
John Foy & Associates encounters many accident victims unwilling to hire legal representation for fear of the costs. Our law firm offers free initial consultations so victims can decide how to move forward.
Additionally, our experience and track record make us confident in our ability to garner a fair settlement, so we do not charge upfront fees. Victims pay for legal services upon receiving compensation. Schedule a no-risk initial consultation with John Foy & Associates today.
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