How to Make a Policy Limits Demand After a Motorcycle Accident (And Why It Can Save You Money)

When Insurance Companies Sometimes Do the Right Thing (Yes, It Happens — Rarely)

If you’ve been seriously hurt in a motorcycle crash, you’re probably dealing with a lot all at once. Pain. Appointments. Time off work. A bike that’s damaged or totaled. And then, almost immediately, an insurance company calling you, asking questions, and acting like they’re there to “help.”

Sometimes, very rarely, insurance companies actually do the right thing.
Most of the time, they don’t.

This page exists for one reason: to help injured riders understand how policy limits demands work, and how, in the right kind of case, making a proper policy limits demand can save you a significant amount of money in attorneys’ fees.

This is not legal advice.
This is not a substitute for hiring a lawyer.
And it’s not something you should try in every case.

But if:

  • You’ve been badly injured or lost a loved one

  • Liability is clear

  • And the at-fault driver’s insurance policy limits are the only realistic source of recovery

…then understanding how policy limits demands work can help you make smarter decisions early.

And if the insurance company does what it’s supposed to do, you may be able to resolve the case without litigation, without years of stress, and without paying a contingency fee.

That’s worth understanding.

First, Some Ground Rules (Please Read This Part)

Before we talk about how to make a policy limits demand, let’s talk about what not to do.

If you remember nothing else from this page, remember these three rules.

1. Do Not Give a Recorded Statement

Insurance adjusters love recorded statements.
They are not for your benefit.

You are not required to give a recorded statement to the other driver’s insurance company. Anything you say can and will be used to minimize or deny your claim.

If asked, you can say:

“I’m not comfortable giving a recorded statement. Please put everything in writing.”

That’s enough.

2. Keep Everything in Writing

Phone calls disappear.
Emails, letters, and claim portals create a paper trail.

If you speak with an adjuster by phone, follow up in writing. Better yet, once a claim is open, communicate only in writing.

3. Never Sign a Release Without a Lawyer Reviewing It

Settlement agreements and releases are legally binding.
Once signed, your case is over for good.

Even if you handle a demand yourself, always have a lawyer review any release before signing. This is not optional.

What Is a Policy Limits Demand?

Every auto insurance policy has limits. For example:

  • $15,000 per person

  • $30,000 per accident

  • $50,000 per person

  • $100,000 per person

  • Or higher

A policy limits demand is a written request asking the insurance company to pay the full bodily injury limits to resolve the claim.

You’re saying:

“My injuries and losses clearly exceed your insured’s coverage. This is your chance to resolve the claim within policy limits.”

In California, when fault is clear and damages exceed coverage, insurers have duties to their insureds. If they unreasonably refuse to pay policy limits when they should, it can create serious problems later.

That leverage is why policy limits demands matter.

When a Policy Limits Demand Makes Sense (And When It Doesn’t)

A policy limits demand is not right for every motorcycle accident.

It usually makes sense when:

  • Fault is clear, like a rear-end crash or left-turn violation

  • Injuries are serious or permanent

  • Medical bills and lost income exceed the policy limits

  • There are no major disputes about liability

  • The at-fault driver is underinsured

It usually does not make sense when:

  • Injuries are minor

  • Fault is disputed

  • Multiple people are competing for the same limits

This is why we often recommend talking to a motorcycle accident lawyer early, even if your goal is to avoid litigation.

Why Insurance Companies Sometimes Pay Policy Limits Early

Insurance companies don’t pay policy limits because they’re generous.
They pay policy limits if it’s safer for them.

If an insurer knows:

  • Their driver is clearly at fault

  • The injuries are serious

  • The damages exceed coverage

…and still refuses to settle, they may expose themselves to bigger problems later.

A well-prepared policy limits demand:

  • Clearly explains what happened

  • Clearly documents the injuries

  • Gives the insurer a fair chance to resolve the case

  • Sets a reasonable deadline

Sometimes, that’s enough.

Step-by-Step: How a Policy Limits Demand Works

Step 1: Confirm the Policy Limits

Before you demand policy limits, it helps to know what they are.

You can request:

  • The insurance company name

  • The policy number

  • The bodily injury limits

  • Any umbrella or excess coverage

Insurers sometimes delay, but you are allowed to ask.

Step 2: Wait Until the Case Is Ready

Policy limits demands are strongest when:

  • Treatment is complete, or

  • Your long-term outlook is clear

Sending a demand too early can weaken it. Waiting too long can also hurt leverage. Timing matters.

Step 3: Gather the Basics

You do not need to overwhelm the adjuster. Send:

  • Police report

  • Photos of the crash and vehicles

  • Medical records and bills

  • Proof of lost income

  • A short explanation of how the injuries affected your life

Clarity matters more than volume.

Step 4: Write the Demand Letter (Plain and Human)

Your letter does not need to sound like it was written by a lawyer. In fact, it often shouldn’t.

Here is a simple example you can adapt.

Sample Policy Limits Demand Letter

Date: [MM/DD/YYYY]
Sent by Email and Certified Mail

Adjuster: [Name]
Insurance Company: [Company Name]
Claim Number: [Claim Number]

I am writing about the motorcycle crash that occurred on [date] at [location]. Your insured, [driver’s name], caused the collision by [brief explanation, such as making a left turn in front of me without yielding]. The police report is attached.

As a result of the crash, I suffered serious injuries, including [brief list of injuries]. I was taken by ambulance to [hospital] and have required ongoing medical treatment. My medical records and bills related to the crash are attached.

My medical expenses alone now exceed $[amount], and I have also missed time from work and continue to deal with pain and physical limitations. Based on the clear fault and the seriousness of my injuries, my damages exceed the available insurance coverage.

Given these facts, I am demanding payment of the full available bodily injury policy limits to resolve this claim.

Please let me know in writing by [deadline] whether the policy limits will be tendered. If you need any additional reasonable information to evaluate this demand, please request it in writing.

I am not agreeing to any recorded statements. All communication should be in writing.

Thank you for your time.

Sincerely,
[Your Name]
[Your Email]
[Your Phone Number]
[Your Mailing Address]

Attachments:
Police report
Medical records and bills

What Happens Next

The insurance company may:

  • Pay the policy limits

  • Ask for more information

  • Delay

  • Deny liability

If policy limits are offered, stop and talk to a lawyer before signing anything.

If the insurer delays or refuses unreasonably, that is often when hiring a lawyer becomes even more important.

How This Can Save Attorneys’ Fees

If your policy limits demand resolves the case without a lawyer, that can mean:

  • No lawsuit

  • No discovery

  • No depositions

  • No trial

  • No legal fees

That can leave more money in your pocket.

But many serious cases cannot be resolved this way. When that happens, having the right lawyer matters.

Important Reminder

Every case is different.
Every insurer is different.
Every adjuster is different.

This guide is meant to educate, not replace legal advice.

If you’ve been seriously injured, or if the insurance company pushes back, talk to a motorcycle accident lawyer right away.

A Final Word From California’s Motorcycle Law Firm

We know how devastating motorcycle crashes can be. We’ve seen how quickly insurance companies try to minimize real harm.

Sometimes, a smart, well-timed policy limits demand can resolve a case efficiently.

Often, it can’t.

Either way, you deserve straight answers and someone in your corner.

If you want help reviewing a policy limits demand, a settlement offer, or a release, or if the insurance company refuses to do the right thing, we’re here.

Fast, Free, Confidential Case Evaluations.


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