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In this video, a personal injury lawyer discusses demand letters, which are sent by injured persons to the individual or insurance company responsible for their injuries. A demand letter serves as an offer to settle a case out of court, commonly used in car accident scenarios. The lawyer typically sends these letters to both the at-fault party's insurance and their own, particularly if uninsured or underinsured motorist coverage is in place. The letter requests compensation according to the policy. If the insurance company agrees, a settlement can be reached; if not, the next step is to file a lawsuit and proceed to court.