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What is a First Call Settlement?


As mentioned in our prior article, “How Car Insurance Providers Segment Personal Injury Claims”, the frequency of injury claims has trended downward over the past twenty years. This is the result of auto insurance companies’ reliance on a new system of dividing the claims so that they can reduce the claims payments they must make. One such category of claim that auto insurers use to minimize claims payments is first call settlements.  

What is a first call settlement? When a collision occurs, the insurer for the at-fault driver wants to minimize the amount of liability they are responsible for at that time or at any point in the future. To accomplish this goal, they may attempt to convince the injured party to accept money for all losses, including those which may be unknown at the time. For the injured party, this means that they are foregoing the opportunity to recover losses in the future should their injuries worsen, or new injuries appear. This initial offering is known as a first call settlement. 

How might this affect the injured party? Aside from limiting the ability to recover in the future, accepting an early first call settlement might mean that an injured person is recovering too little. First call settlements are known to be small amounts (as low as $200) and, depending on the extent of the total damages and injuries, the injured party may be entitled to more than what they were initially offered. Therefore, it is important for the injured party to consider all their options and make an informed decision when accepting settlement. 

If you have been in an accident recently, it is important that you reach out to an experienced personal injury attorney who can help you stay informed and assist with any settlement needs. KI Legal Personal Injury has a team of knowledgeable personal injury attorneys ready to help you as soon as possible. Contact KI Legal Personal Injury by calling (212) 404-8644 or emailing to get started.  




This information is the most up to date news available as of the date posted. Please be advised that any information posted on the KI Legal Blog or Social Channels is being supplied for informational purposes only and is subject to change at any time. For more information, and clarity surrounding your individual organization or current situation, contact a member of the KI Legal team.  


KI Legal Personal Injury fights for victims of a wide array of personal injury claims, from Motor Vehicle Accidents to Scaffolding and Ladder Falls to Slip/Trip & Falls, amongst others. By leveraging its multidisciplinary foundation and, with the help of its experienced litigators, KI Legal Personal Injury can fight for the results and compensation that victims deserve without pushing for premature settlements due to financial reasons. This financial paradigm shift swings the pendulum in our favor when it comes to negotiating with insurance carriers, inherently leading to better results for clients. For the latest updates. 

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