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.Below is an example of a car insurance demand letter. Make sure to tailor it to your own accident and situation. Learn about cash settlements in your case and how they are accepted and approved. David Azizi explains the process of cash settlement acceptance. Car Accident Settlement Letter Example. Below is a sample demand letter for an auto accident case. Learn about different types of demand letters and how to write a demand letter for a dispute in Texas. A car accident settlement letter is a formal written communication aimed at resolving a dispute amicably before proceeding to litigation.