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In this video tutorial, a personal injury lawyer explains the concept of a demand letter. A demand letter is issued by an injured person to the individual responsible for the injury or their insurance company, aiming to settle the case without resorting to a lawsuit. This process is commonly seen in car accident cases. The lawyer typically sends a demand letter to the at-fault party’s insurance and the client’s own insurance if they have uninsured or underinsured motorist coverage. The letter requests payment according to the insurance policy, and often leads to a settlement. If an agreement cannot be reached with the insurance company, the next step is to file a lawsuit.