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.A car accident settlement letter is a formal document sent to an insurance company, outlining your claim for compensation following a motor vehicle accident. Learn about cash settlements in your case and how they are accepted and approved. David Azizi explains the process of cash settlement acceptance. Method: Send your letter via Certified US Mail with signature confirmation and include the return receipt number at the top of your letter. If you are injured in a motor vehicle accident, file a written notice of claim with the No-Fault insurer that identify the injured person(s). A car accident settlement letter is a formal written communication aimed at resolving a dispute amicably before proceeding to litigation.