What is a first-party contact settlement, and why should you be careful?
A first-party contact settlement is a quick offer an insurance company makes when an injured person contacts them directly after an accident, often in the range of $300 to $500. Once you sign the release that comes with it, you basically waive your rights to pursue any further bodily injury claims in the future. That is why we want you to avoid it as much as possible.
This is something our team at LA Injury Attorneys is finding often nowadays. People are getting into accidents, contacting the insurance companies on their own, and receiving these early offers before they understand what their claim may involve.
How do these early offers usually happen?
The pattern is simple. Someone is hurt in a crash, and one of their first calls is to the insurance company. During that contact, the insurer makes a first-party contact offer, frequently somewhere around $300 to $500.
To a person dealing with a damaged car, missed work, and pain, a few hundred dollars right away can sound reasonable. The offer is fast and requires little effort. But the speed is the problem. It arrives before most people know the full extent of their injuries or what their claim is actually worth.
What happens when you sign the release?
Accepting the money almost always means signing a release. That document is the part people overlook, and it carries real weight.
Once you sign that release, you basically waive your rights to any further bodily injury claims. If your injuries turn out to be more serious than you thought, or you need more treatment later, the signed release can stand in the way of seeking additional compensation for them.
In short, a small check today can close the door on a claim you did not yet know you had.
Why should you speak to an attorney before the insurance company?
If you can speak to an attorney before speaking to the insurance company, you are going to do yourself a big, big, huge favor. An attorney can help you understand what you are being offered, what you would be giving up by signing, and whether the offer reflects your situation.
Our founder is a former insurance adjuster, so our firm understands how insurers approach these conversations and these offers. We use that insurance-industry experience to negotiate with insurers, build claims, and seek maximum settlements or verdicts for our clients.
Who is most likely to face a first-party contact offer?
Anyone injured in an accident who contacts an insurer directly may receive one. We see this come up often in Auto Accidents, and it can also arise in Motorcycle Accidents, Ride Share Accidents, Truck Accidents, and Pedestrian Accidents. Whatever type of crash you were in, the same caution applies: understand the release before you sign anything.
What should you do after an accident?
- Pause before accepting any quick offer. A fast $300 to $500 offer is not a reason to sign immediately.
- Read anything labeled a release carefully. Signing it may waive future bodily injury claims.
- Talk to an attorney first. Getting advice before speaking with the insurance company can protect your options.
LA Injury Attorneys offers a free consultation to discuss your claim in detail with a skilled and compassionate attorney, and we are available 24/7 to answer your questions. We serve accident victims in Los Angeles, Burbank, North Hollywood, El Segundo, and across California, and you pay no fees unless we win.
Schedule A Free Consultation before you speak to the insurance company.
Frequently Asked Questions
What is a first-party contact settlement?
A first-party contact settlement is an early offer an insurance company makes when an injured person contacts them directly after an accident, often around $300 to $500. Accepting usually means signing a release. LA Injury Attorneys sees these offers often nowadays and recommends speaking with an attorney before accepting one, because the release can limit your future rights.
What happens if I sign the insurance company’s release?
Signing the release generally means you waive your rights to pursue further bodily injury claims in the future. If your injuries later prove more serious or need more treatment, the signed release can block additional compensation. LA Injury Attorneys advises accident victims to understand exactly what a release gives up before signing anything an insurer sends.
Should I talk to an attorney before calling the insurance company?
Yes. Speaking to an attorney before speaking to the insurance company can do you a big, big, huge favor. An attorney can explain any offer and what signing would waive. LA Injury Attorneys offers a free consultation, is available 24/7, and charges no fees unless they win, so getting advice first carries no upfront cost.
Is a $300 to $500 offer a good deal after an accident?
It may not be. A quick $300 to $500 offer often arrives before you know the full extent of your injuries, and accepting it typically requires a release that waives future bodily injury claims. LA Injury Attorneys, whose founder is a former insurance adjuster, recommends having an attorney review any early offer before you accept.
Disclaimer:Â This article is provided for general informational purposes only and should not be considered legal advice. Every personal injury case is unique, and the laws that apply may vary depending on the specific facts. Reading this article does not create an attorney-client relationship. If you have questions about your legal rights or deadlines, consult a qualified California attorney regarding your particular situation.