Texas Legal Glossary · Personal Injury

Demand Letter

Written and reviewed by Shane M. Boasberg, founder of SMB Law, PC · Licensed in Texas since 2003 · Updated October 2026

Definition: A demand letter is a formal pre-suit letter from an injured person or their lawyer to the at-fault party’s insurer. It lays out liability, injuries, medical expenses, and lost income, and states the amount required to settle, often as a time-limited policy-limits demand.

Also called: settlement demand, demand package

What a demand letter means in Texas

A demand letter is the document that moves a personal injury claim from treatment into negotiation. It is sent to the liability insurer, usually after the injured person has finished treating or reached a stable medical condition. It explains why the insured is at fault, describes the injuries and treatment, itemizes medical bills and lost wages, and states the dollar amount the claimant will accept.

No Texas statute requires a demand letter before filing an ordinary negligence suit. Some claims do have mandatory pre-suit notice: a Deceptive Trade Practices Act claim requires 60 days written notice under Business and Commerce Code § 17.505, and a health care liability claim requires 60 days notice under CPRC § 74.051.

How it works in practice

A well-built demand is a package, not a letter. It attaches the police report, photographs, medical records, billing statements, wage verification, and sometimes a narrative from the treating physician. The liability section cites the Transportation Code rule the other driver violated. The damages section walks through each category and explains why the number is justified.

When injuries are serious and the policy is small, the demand is often a Stowers demand: an offer to settle for the policy limits within a stated time, typically 30 days, in exchange for a full release of the insured. If the insurer unreasonably rejects it and a jury later awards more, the insurer can be liable for the entire excess judgment.

Why it matters in your case

The demand is the first time the insurer sees the full case, and the adjuster’s reserve is often set on that first impression. A demand sent too early, before the diagnosis is complete, undervalues the claim. A demand with gaps in the records invites a lowball response. We do not send a demand until the medical story is complete and every bill is in hand.

Example

After a T-bone collision at Parmer Lane and Lamar, Nadia has a fractured pelvis and $115,000 in medical bills. The other driver carries a $30,000 minimum policy. Her lawyer sends a Stowers demand for the $30,000 limits with a 30-day deadline, attaching every record. The insurer tenders the limits, and Nadia turns to her own underinsured motorist coverage for the rest.

This entry explains Texas law in general terms and is not legal advice for any specific situation. Statutes and case law change; the date above reflects the last review.