How Georgia’s Pre-Suit Settlement Demands Can Influence Your Personal Injury Case

When you’ve been injured in a car accident in Georgia, the thought of legal action may not be the first thing on your mind. But when medical bills and lost wages start adding up, you have to take action.

Most people automatically think of lawsuits when they think about personal injury claims—in fact, that’s why a lot of people don’t even try to seek compensation. But under Georgia law, you have a tool available to you known as a pre-suit settlement demand.

Learn more about pre-suit settlement demands and how they may support your case. When you’re ready to take the next step in your personal injury claim, contact Harris Lowry Manton LLP.

What is a pre-suit settlement demand in Georgia?

A pre-suit settlement demand is essentially a written offer sent to the at-fault party’s insurance company before you file a lawsuit. While it may sound similar to the informal negotiations that can happen in any state, a pre-suit settlement demand is different in several ways. It also holds legal weight that informal negotiations do not.

This is written into Georgia law for a few reasons. First, it encourages insurance companies to settle legitimate claims that involve actual damages to victims without going through expensive litigation. A court system that’s backlogged with every personal injury claim that an insurance company refuses to settle would leave everyone with fewer legal options. Additionally, this type of demand shows that the victim is willing to resolve the case in good faith without having to go to court.

The legal framework for this demand

Pre-suit settlement demands are outlined in O.C.G.A. 9-11-67.1. The law states the components that must be included in a pre-suit settlement demand letter, the timeframe for such a letter, and the rights on both sides of the deal.

The law applies solely to personal injury and wrongful death cases caused by motor vehicle accidents. When an injured party sends a demand letter, it must be delivered by certified mail or statutory overnight delivery, return receipt requested—verbal discussions are not enough. You must give the insurer a reasonable amount of time to respond—at least 30 days. When injured parties send these letters in an effort to force the insurance company to reject them, which may open the gate to additional compensation in court, the court sees that. The letter must actually reflect what you’d be willing to accept for your injuries.

What a compliant demand letter includes

A strong and compliant pre-suit demand letter in a personal injury matter must include several key points to be considered a demand letter under the law. Without the necessary components, it’s basically just an informal offer. Your letter should include:

• Acceptance date, no less than 30 days from receipt
• Specific payment amount and payment delivery date
• Release terms (for example, releasee(s), releases type, claims to be released)
• If demanded, a sworn insurance-disclosure statement
• Supporting documentation and medical records—at least enough for the insurance company to properly evaluate the victim’s damages

Under state law, the offeror can include certain additional terms as long as they do not conflict with the mandatory statutory components, but the offeror does not have to. They may, if appropriate, include a requirement that all relevant insurance has been disclosed or a requirement to disclose whether or not the at-fault party was acting in the scope of their employment at the time of the collision.

How these demands influence settlement negotiations

A well-written and carefully considered pre-suit demand letter can influence negotiations in several ways. First, it increases your leverage against the insurance company. A valid demand letter shifts the dynamics of traditional negotiations. Insurance companies are very good at delaying claims and denying them outright. But if they ignore a pre-suit settlement demand letter or reject it without a reasonable basis, the court may later determine that they acted in bad faith—and that leaves them on the hook for even bigger financial losses. This letter gives them an incentive to act in good faith.

Most people who send pre-suit settlement demand letters are doing so while represented by car accident attorneys. This also puts pressure on insurance companies. They’re good at intimidating individual victims and encouraging them to accept offers that are against their best interests, but they can’t do the same to attorneys. When you show up with both a legally valid demand letter and an attorney, they may be forced to consider your claim more seriously than they would have otherwise.

Mistakes to avoid

Remember that without the necessary components, a pre-suit settlement demand letter may just be considered an informal start to negotiations. Avoid key mistakes to make your letter as strong as possible.

Don’t forget to meet the statutory requirements under Georgia law. If you give a response deadline that is too short or fail to specify which claims (and against whom) will be released, the insurance company may not have to consider your letter. Similarly, failing to include documentation of medical records, medical bills, and other relevant losses may render the letter invalid. It’s also important to be realistic and practical when setting a settlement amount. The amount presented should reflect your losses, but inflating the number or suggesting a number that is not supported by evidence can backfire.

Finally, don’t try to draft your own letter without the assistance of a car accident lawyer. There were recent changes made to this law in 2024, and you need an attorney who can ensure that your letter is valid.

Fight for compensation with Harris Lowry Manton LLP

If you’ve been injured by a negligent driver in Georgia, you could be entitled to compensation—and a pre-suit settlement demand letter may be an important part of that. Learn more now during a consultation. Call us today or reach out online to get started.