Auto Accident Demand Letter - Utah

DEMAND FOR SETTLEMENT — MOTOR VEHICLE COLLISION

STATE OF UTAH

FOR SETTLEMENT PURPOSES — UTAH R. EVID. 408 MAY LIMIT SPECIFIED USES OF DISPUTED-CLAIM NEGOTIATIONS

[FIRM NAME]
[________________________________]
[________________________________]
[City], Utah [____]
Telephone: [________________________________]
Email: [________________________________]

DATE: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA ELECTRONIC MAIL

[________________________________]
[Adjuster Name]
[________________________________]
[Insurance Company Name]
[________________________________]
[Street Address]
[________________________________]
[City, State ZIP]

RE: SETTLEMENT DEMAND — MOTOR VEHICLE COLLISION
Our Client: [________________________________] (hereinafter "Claimant")
Date of Loss: [__/__/____]
Location of Accident: [________________________________]
Your Insured: [________________________________] (hereinafter "Tortfeasor")
Policy Number: [________________________________]
Claim Number: [________________________________]
Date of Birth: [__/__/____]
Age at Time of Accident: [____]

Dear [________________________________]:

This firm represents [________________________________] (hereinafter "Claimant") in connection with personal injuries and damages sustained in a motor vehicle collision that occurred on [__/__/____] in [________________________________] County, Utah. This letter constitutes a formal demand for settlement of our client's claims arising from the negligence of your insured, [________________________________].

If and to the extent this communication is a compromise offer concerning a disputed claim, Utah R. Evid. 408 limits specified uses to prove or disprove liability for, the validity of, or the amount of the claim. The rule permits other-purpose use, preserves otherwise discoverable evidence, and does not itself make this ordinary demand confidential or privileged. Utah law imposes upon every insurer a duty of good faith and fair dealing in the evaluation and payment of claims; failure to fairly evaluate and respond to a documented demand may expose the carrier to extracontractual liability.

I. UTAH LEGAL FRAMEWORK

A. Utah Is a No-Fault / PIP State — Tort Threshold (Utah Code § 31A-22-309)

Utah is a no-fault automobile insurance state. Every owner of a registered motor vehicle must carry Personal Injury Protection (PIP) coverage under Utah Code § 31A-22-306, with a minimum medical benefit of $3,000 per person set by Utah Code § 31A-22-307(1)(a). PIP pays the insured's own medical expenses, a portion of lost wages, and certain other benefits regardless of fault.

Because Utah is a no-fault state, a person who has (or is required to have) PIP coverage may not maintain a tort action for general damages (pain, suffering, and other non-economic damages) unless the claimant crosses the statutory tort threshold. Utah Code § 31A-22-309(1)(a) provides verbatim:

"A person who has or is required to have direct benefit coverage under a policy which includes personal injury protection may not maintain a cause of action for general damages arising out of personal injuries alleged to have been caused by an automobile accident, except where the person has sustained one or more of the following: (i) death; (ii) dismemberment; (iii) permanent disability or permanent impairment based upon objective findings; (iv) permanent disfigurement; (v) a bone fracture; or (vi) medical expenses to a person in excess of $3,000."

Subsection (1)(b) further provides that this bar "does not apply to a person making an uninsured motorist claim."

Threshold Met: Our client has crossed the Utah tort threshold under § 31A-22-309 as follows (check all that apply):

☐ Medical expenses to the Claimant in excess of $3,000 — verified billed amount: $[________]
☐ Bone fracture — described below
☐ Permanent disability or permanent impairment based upon objective findings
☐ Permanent disfigurement
☐ Dismemberment
☐ Death (wrongful death claim)

Because the threshold is satisfied, our client is entitled to pursue all damages — economic and non-economic — against your insured. The PIP benefits already paid do not reduce the amount recoverable from the at-fault driver; this demand seeks third-party liability damages over and above any PIP benefits.

B. Modified Comparative Negligence — 50% Bar (Utah Code § 78B-5-818)

Utah follows a modified comparative negligence system. Utah Code § 78B-5-818(1)–(3) provides verbatim:

"(1) The fault of a person seeking recovery may not alone bar recovery by that person. (2) A person seeking recovery may recover from any defendant or group of defendants whose fault, combined with the fault of persons immune from suit and nonparties to whom fault is allocated, exceeds the fault of the person seeking recovery prior to any reallocation of fault made under Subsection 78B-5-819(2). (3) No defendant is liable to any person seeking recovery for any amount in excess of the proportion of fault attributed to that defendant under Section 78B-5-819."

In practice, a claimant is barred from recovery only if the claimant's own fault is greater than 50% (i.e., the claimant's fault must not exceed the combined fault of the defendants). If the claimant is 50% or less at fault, the claimant recovers, with damages reduced in proportion to the claimant's percentage of fault. Each defendant is severally liable only for its own proportion of fault under § 78B-5-819 — there is no joint liability among tortfeasors in Utah.

In the present case, your insured bears 100% of the fault for this collision. Our client bears 0% comparative fault.

C. Statute of Limitations

Limitations Classification — Utah Code § 78B-2-307(4)

Section 78B-2-307(4) supplies four years only for relief not otherwise provided for by law; it does not state that every motor-vehicle personal-injury claim runs from the collision date. Record each claim, defendant, accrual rule, specific statute, toll, and calculated deadline: [________________________________].

Property Damage — Three Years (Utah Code § 78B-2-305)

The limitations period for damage to personal property, including motor vehicles, is three (3) years under Utah Code § 78B-2-305.

D. Mandatory Liability Insurance — 30/65/25 (Utah Code § 31A-22-304)

Effective January 1, 2025 (2023 Utah Laws, H.B. 113), Utah Code § 31A-22-304(2) requires the following minimum motor vehicle liability limits:

E. Uninsured/Underinsured Motorist Coverage (Utah Code § 31A-22-305)

Utah insurers must offer uninsured (UM) and underinsured (UIM) motorist coverage; UM coverage may not be waived except in writing. We reserve all rights to pursue UM/UIM benefits to the extent your insured's limits are insufficient to compensate our client.

F. No Cap on Compensatory Damages

Utah imposes no statutory cap on compensatory damages (economic or non-economic) in motor vehicle personal injury cases.

II. STATEMENT OF FACTS

A. Accident Description

On [__/__/____], at approximately [____] [a.m./p.m.], our client, [________________________________], was operating a [____ Year] [________________________________] [Make/Model], bearing Utah license plate [________________________________], traveling [direction] on [________________________________] [Street/Highway] in/near [________________________________], [________________________________] County, Utah.

Your insured, [________________________________], was operating a [____ Year] [________________________________] [Make/Model], bearing license plate [________________________________]. Your insured [________________________________] [describe negligent conduct].

As a direct and proximate result of your insured's negligence, your insured's vehicle struck our client's vehicle [________________________________] [describe point of impact].

B. Weather and Road Conditions

Weather conditions were [________________________________]. Road conditions were [________________________________]. Visibility was [________________________________]. The posted speed limit was [____] miles per hour.

C. Police Report

The collision was investigated by [________________________________] [agency, e.g., Utah Highway Patrol, Salt Lake City Police Department]. The investigating officer, [________________________________], prepared a report assigned Case Number [________________________________]. The report [________________________________] [summarize findings, citations issued].

D. Witnesses

E. Physical Evidence

☐ Photographs of the accident scene preserved
☐ Photographs of vehicle damage preserved
☐ Photographs of client's visible injuries preserved
☐ Dashcam or surveillance video footage [is/is not] available
☐ Event Data Recorder (EDR) data [has/has not] been preserved
☐ Traffic/intersection camera footage [has/has not] been requested

III. LIABILITY ANALYSIS

A. Negligence of Your Insured

Under Utah law, the elements of negligence are (1) a duty of care, (2) breach of that duty, (3) causation, and (4) damages. Your insured breached the duty of care by:

☐ Violating Utah Code § [________________________________] [cite specific traffic statute]
☐ Failing to keep a proper lookout
☐ Following too closely (Utah Code § 41-6a-711)
☐ Failing to yield the right of way (Utah Code § 41-6a-902 et seq.)
☐ Operating a vehicle while distracted / texting (Utah Code § 41-6a-1716)
☐ Driving under the influence (Utah Code § 41-6a-502)
☐ Exceeding the posted speed limit (Utah Code § 41-6a-601)
☐ Failing to obey a traffic control device (Utah Code § 41-6a-305)
☐ [________________________________] [other negligent conduct]

B. Proximate Causation

Your insured's negligence was the direct and proximate cause of our client's injuries. But for the negligent conduct, this collision would not have occurred.

C. Allocation of Fault

Your insured bears 100% of the fault. Our client bears 0% comparative fault and is therefore well within the 50% bar of Utah Code § 78B-5-818.

IV. INJURIES AND MEDICAL TREATMENT

A. Emergency Treatment

Following the collision, our client was [________________________________] [describe transport / facility] on [__/__/____]. Presenting complaints included:

• [________________________________]
• [________________________________]
• [________________________________]

B. Medical Treatment Chronology

C. Current Medical Status and Prognosis

As of this demand, our client [________________________________] [describe current condition / prognosis]. Dr. [________________________________] has opined that [________________________________].

D. Future Medical Treatment

V. DAMAGES

A. Past Medical Expenses

B. Future Medical Expenses

C. Lost Wages and Income

Our client was employed by [________________________________] as a [________________________________] earning $[________] [per period]. As a direct result of the injuries, our client was unable to work for [________________________________].

D. Loss of Earning Capacity

[If applicable] $[________]

E. Property Damage

F. Out-of-Pocket Expenses

G. General Damages (Pain and Suffering)

Our client has endured significant physical pain, emotional distress, and diminished quality of life. [________________________________] [Describe nature and severity of pain, impact on daily life, sleep, anxiety, loss of enjoyment]. Because our client has crossed the § 31A-22-309 tort threshold, these non-economic damages are fully recoverable from your insured. There is no cap on non-economic damages in Utah.

General Damages Valuation: $[________]

H. Loss of Consortium

[If applicable] Our client's spouse, [________________________________], asserts a claim for loss of consortium under Utah Code § 30-2-11. Loss of Consortium Damages: $[________]

I. Summary of Damages

VI. DEMAND FOR SETTLEMENT

Based upon the foregoing, we demand settlement in the total amount of:

$[________________________________]

This demand is open for thirty (30) days, expiring on [__/__/____]. If we do not receive a meaningful response or acceptable offer by that date, we will file a civil complaint in the appropriate Utah District Court without further notice.

This demand covers all claims including:

☐ Personal injury claims
☐ Property damage claims
☐ Loss of consortium (if applicable)
☐ All past, present, and future damages

VII. POLICY-LIMITS DISCLOSURE AND GOOD FAITH

We request immediate written confirmation of:

☐ The bodily-injury liability coverage limits
☐ Any umbrella or excess policies
☐ Whether coverage is disputed
☐ UM/UIM coverage limits on all applicable policies

Utah imposes a duty of good faith and fair dealing on insurers. An insurer that unreasonably fails to settle a claim within policy limits when liability is reasonably clear may be liable for the entire judgment, including any amount in excess of policy limits, and for consequential and punitive damages. See Beck v. Farmers Ins. Exch., 701 P.2d 795 (Utah 1985); Campbell v. State Farm Mut. Auto. Ins. Co., 65 P.3d 1134 (Utah 2001).

VIII. MEDICAL RECORDS AUTHORIZATION

Enclosed is a HIPAA-compliant authorization (45 C.F.R. § 164.508).

I, [________________________________], authorize the following providers to release records related to the collision on [__/__/____] to [________________________________] [Insurance Company]:

This authorization expires on [__/__/____] or upon final resolution, whichever occurs first.

Signature: _________________________________ Date: [__/__/____]
Printed Name: [________________________________]

IX. ENCLOSED DOCUMENTATION

☐ Police/Accident Report
☐ Photographs (scene, vehicle damage, injuries)
☐ Medical records and itemized bills (establishing the § 31A-22-309 threshold)
☐ PIP payment ledger
☐ Proof of lost wages
☐ Property damage estimates/invoices
☐ HIPAA-compliant medical authorization
☐ Witness statements
☐ [________________________________]

X. UTAH-SPECIFIC PRACTICE NOTES

☐ No-Fault / PIP State: Utah Code § 31A-22-306 — minimum $3,000 PIP per person; PIP pays first regardless of fault
☐ Tort Threshold: Utah Code § 31A-22-309 — general-damages suit barred unless medical expenses exceed $3,000 OR death, dismemberment, permanent disability/impairment, permanent disfigurement, or a bone fracture; threshold does not apply to UM claims
☐ Modified Comparative Negligence (50% Bar): Utah Code § 78B-5-818 — barred only if claimant's fault exceeds the defendants' combined fault
☐ Several Liability Only: Utah Code § 78B-5-819 — each defendant liable only for its own share; no joint liability
☐ Residual-period screen: Utah Code § 78B-2-307(4); confirm no specific period and calendar accrual/deadline [__/__/____]
☐ Three-Year Property Damage SOL: Utah Code § 78B-2-305
☐ Minimum Limits 30/65/25: Utah Code § 31A-22-304(2) (effective Jan. 1, 2025)
☐ UM/UIM: Utah Code § 31A-22-305 — UM waivable only in writing
☐ No Damages Cap: No statutory cap on compensatory damages
☐ Bad Faith: Beck v. Farmers Ins. Exch., 701 P.2d 795 (Utah 1985) — failure to settle within limits when liability is clear
☐ Settlement Communication: Utah R. Evid. 408

Respectfully submitted,

[FIRM NAME]

By: _________________________________
[________________________________]
[Attorney Name]
Utah State Bar No. [________________________________]
[________________________________]
[Street Address]
[________________________________]
[City, Utah ZIP]
Telephone: [________________________________]
Email: [________________________________]

cc: [________________________________] [Client Name]
Enclosures: As noted above

SOURCES AND REFERENCES

• Utah Code § 78B-5-818 (Comparative Negligence): https://le.utah.gov/xcode/Title78B/Chapter5/78B-5-S818.html
• Utah Code § 78B-5-819 (Apportionment of Fault): https://le.utah.gov/xcode/Title78B/Chapter5/78B-5-S819.html
• Utah Code § 78B-2-307 (Four-Year SOL): https://le.utah.gov/xcode/Title78B/Chapter2/78B-2-S307.html
• Utah Code § 78B-2-305 (Three-Year Property Damage SOL): https://le.utah.gov/xcode/Title78B/Chapter2/78B-2-S305.html
• Utah Code § 31A-22-309 (No-Fault Tort Threshold): https://le.utah.gov/xcode/Title31A/Chapter22/31A-22-S309.html
• Utah Code § 31A-22-306 (Mandatory PIP): https://le.utah.gov/xcode/Title31A/Chapter22/31A-22-S306.html
• Utah Code § 31A-22-304 (Minimum Liability Limits — 30/65/25): https://le.utah.gov/xcode/Title31A/Chapter22/31A-22-S304.html
• Utah Code § 31A-22-305 (UM/UIM): https://le.utah.gov/xcode/Title31A/Chapter22/31A-22-S305.html
• Utah HB 113 (2023, minimum-limits increase): https://le.utah.gov/~2023/bills/static/HB0113.html