The demand package goes out, and then the phone does not ring for weeks. Clients understandably assume something has gone wrong. Usually nothing has. Here is what is actually happening on the other side.
What was actually sent
A demand package is not a letter. It typically includes a liability analysis, the complete medical records and bills, proof of lost income, and a statement of what is being demanded and why. It is the first time the insurer sees the whole claim assembled in one place.
What the adjuster does with it
The file is reviewed and the injuries are coded and valued, often with software that compares your treatment against similar claims. The adjuster checks for the things that reduce value:
- Gaps in treatment. A month with no visits is read as a month you were not hurt.
- Pre-existing conditions in prior medical records.
- Any comparative fault argument that can reduce the payout.
- Inconsistencies between what you told different providers.
The adjuster then usually needs authority from a supervisor to offer above a certain amount, and that approval takes time inside the company.
How long it takes
A substantive response commonly takes several weeks. Larger claims take longer because more layers of approval are involved. Silence in the first few weeks is normal and is not a signal about the strength of your claim.
The four responses you might get
An acceptance. Uncommon on a first demand.
A counteroffer. The usual outcome. First counters are typically well below the demand, and that is a negotiating position rather than a final valuation.
A request for more information. Often legitimate, sometimes a delay. Your attorney decides what to provide and what to decline.
A denial. Either liability is disputed or the insurer is testing whether you will file. A denial is not the end of the claim.
What happens if negotiation fails
A lawsuit is filed. That decision is driven by the gap between the offer and the value of the claim, and by the deadlines. The general deadline is two years from the date of injury under Code of Civil Procedure § 335.1, and only six months to present a claim against a public entity under Government Code § 911.2.
Where the injuries clearly exceed the available policy, your attorney may instead make a policy limits demand under Code of Civil Procedure § 999.1, which carries its own required contents and response timing.
What you should do while you wait
- Keep treating if you are still symptomatic. Stopping to wait damages the claim.
- Stay off social media about your activities and your injuries.
- Send any new bills to your attorney as they arrive.
- Route all adjuster contact to your attorney.
Questions about where your claim stands? Call (213) 800-0706. We handle car accident and personal injury claims throughout California.
How negotiation usually unfolds
After the first counteroffer, the pattern is typically several rounds of movement. Your attorney responds to the specific reductions the adjuster applied rather than simply restating the demand, because a counter that engages with the stated reasons moves further than one that does not.
Common reductions and how they get answered:
- “Treatment was excessive.” Answered with the treating providers’ reasoning and the clinical record.
- “There was a gap in care.” Answered with the explanation, which is frequently work, childcare, cost, or an insurer authorization delay.
- “This condition was pre-existing.” Answered by distinguishing baseline from aggravation. California allows recovery for aggravation of a pre-existing condition.
- “Our insured was not fully at fault.” Answered with the physical evidence and the applicable rules of the road.
Why silence is not a signal
Adjusters carry large caseloads and work on internal timelines. A file that has not moved in three weeks is usually a file waiting for a supervisor’s authority, not a file that has been rejected. Your attorney follows up on a schedule rather than reading meaning into the gaps.
What to ask your own attorney
You are entitled to know where things stand. Reasonable questions at any point:
- What was demanded, and what has been offered?
- What specific reductions did the adjuster apply, and how are we answering them?
- What is the deadline on this claim, and how much runway is left?
- What is still outstanding, and is anything waiting on me?
If you cannot get straight answers to those questions from whoever is handling your case, that is worth paying attention to.
About the author. Joshua B. Adelpour is the founder of Not My Fault Law Group, APC, a California personal injury firm based in Woodland Hills. He is licensed by the State Bar of California, Bar No. 318226, and spent nearly a decade defending insurance companies in civil litigation before opening the firm. Call (213) 800-0706 for a free consultation. There are no attorney’s fees unless we win.
This article is general information about California law and is not legal advice. Reading it does not create an attorney client relationship. Every case depends on its own facts.
Frequently Asked Questions
How long does an insurance company take to respond to a demand letter?
A substantive response commonly takes several weeks, and larger claims take longer because more internal approval is required. Silence in the first few weeks is normal.
The first offer was very low. Does that mean my case is weak?
Not usually. First counteroffers are negotiating positions rather than final valuations, and low openings are standard practice.
What if the insurer denies the claim outright?
A denial is not the end. It usually means liability is disputed or the insurer is testing whether a lawsuit will actually be filed. The next step is evaluating whether to file suit within the applicable deadline.