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a car accident demand letter requests payment from a liable individual for certain costs relating to a car accident that occurred between two drivers or in some cases between a driver and a pedestrian it acts as an invoice for all medical and property damage costs and is forwarded directly to the liable driver or his or her insurance company in this video well review important information regarding car accident demand letters as well as where to get a free official template first lets look at the importance of a car accident demand letter sending a formal demand letter is a crucial step in seeking a settlement for costs incurred after the crash the letter can be used to begin settling a dispute outside of the legal system accounts for your version of the accident in written detail kickstarts negotiations between both parties towards a settlement provides the liable party or insurance company if any with a breakdown of all costs related to the incident documents the demanding partys