It is a situation that many of us can be confronted: you step back to your car after an outing, just to find a dented bumper or scrap panel. But this time there is a comment about the windshield with a name, number and insurance data.
You call the number and speak with the father of the person who hits your car. He explains that his son, a new driver, has caused the damage and proposes to pay for the repairs, instead of submitting an insurance claim. He is worried about the hit of his son's premiums.
It seems honest and you want to be honest with a young driver. But is it smart?
Before you agree to skip the insurance claim, this is what you need to know.
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The risks to establish privately
To begin with, if you or someone else was in the car at the time of the accident, it is safest to go through insurance. Injuries can take days to come up and if there is a chance that you will be injured, your final medical accounts can accumulate. You want the legal and financial protection that is accompanied by an insurance claim.
However, if the damage was to your parked car with no one, you can consider establishing privately, without submitting a claim, although you are probably still obliged to report the incident to your insurer. And just know that not submitting a claim is still at risk.
Include the benefits of dealing with private:
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Faster resolution: You do not have to wait for insurance regulators, paperwork or delays when receiving your check.
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No increase in your premium: car insurance companies often increase your rates after a claim, even if the accident was not your fault.
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A favor for the other driver: they avoid fines such as points on their permit or insurance rate.
The disadvantages of submitting private:
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No guarantees: the other party may not pay in time. If they pay you ghosts or never pay, you have a limited story.
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Risk of hidden damage: You can be on the hook for additional repair bills if the other driver refuses to pay for damage that was not clear at the time of the accident. This can include problems that pop up months later.
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How to skip insurance – Safe
If you are considering accepting private payment instead of submitting an insurance claim, there are steps that you must take to protect yourself.
Get everything in writing
Make sure you get the full name of the driver, contact details, license plate and driving proof number. Write an agreement with regard to the time and date of the accident, the damage, estimated costs and their obligation to pay on a certain expiry date.
Document the damage
Take photos and videos of the damage to your vehicle, as well as any damage to the other vehicle. Make sure you get every corner and also record images of the environment.
Get an estimate before you accept the payment
Do not recommend what the repairs will cost. Take your vehicle to a trusted technician or car repair shop before you agree with the payment. If the damage turns out to be more extensive than expected, consider submitting an insurance claim.
Set a solid payment theadline
If the other party wants to pay in full, agree a solid deadline for payment. If they want to pay in installments, write down a payment schedule and keep the details of all payments received. If you have any doubts about their assets or willingness to pay, ask for payment in full or submit an insurance claim.
Know the rules of your insurance about reporting an accident
Some insurance companies (and states) require you to report an accident or damage to your local or law enforcement agency and for your insurance within a specific number of days, even if you do not intend to submit a claim. Make sure you follow the rules, or you can run the risk of losing your policy.
This means that you may have a short period of time (only 24 hours) to decide and confirm that the other side will really keep their end of the bargain.
Private establishing can work, but only if you are careful, thorough and realistic. If you are uncertain about the damage, liability or assets of the other party to follow, the insurance can still be your safest bet.
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This article only offers information and may not be conceived as advice. It is provided without any form of warranty.
