In this comprehensive guide, we'll walk you through an example car accident settlement letter and break down its key elements. Your letter should include a concise factual summary of the accident, an overview of your damages, your settlement demand, and not much more.Start with your name, address, and contact information. See average injury payouts made to real Arizona car accident victims. Find case examples similar to yours. A Car Accident Release of Liability Form is a legal document used to formalize an agreement between parties involved in a car accident. How to fill out the Settlement Demand Letter for Car Accident Claims? For example, if you were injured in a car accident, the insurance company of the driver may act as the co-defendant. The short answer is that the personal injury accident settlements are not typically taxable, under certain circumstances they can be taxed. Small claims court takes place in Arizona justice courts .