Car Accident Insurance Can I Collect Money And Not Have Repair?

A fender bough can leave you annoyed at its inconvenience, but ultimately uninjured. If you accidentally rear-concluded someone with just a footling tap, or you lot had a collision that left one or both vehicles with only a minor paring or scrape, is it really worth it to go through your insurance company, or is it easier to settle the claim on your own?

Yous sometimes tin can settle a car accident without insurance. But should you?

The answer isn't always articulate.

We'll take a expect at what to do if you're thinking about settling without insurance, and what the risks and benefits could be.

When to consider settling without insurance

Only consider a private settlement if the accident is small. Unfortunately, sometimes what appears to be "minor" is actually more serious than you call up. What looks like a ding in a bumper could involve damages underneath that are only visible once the mechanic performs an examination.

Probably the most important part of dealing with a car accident privately is that both parties need to be in understanding. If the other commuter is more than comfy making a claim to insurance, you demand to make certain you're reporting it to your insurance company, too. The other driver is entitled to handle it that way if that's their preference — merely if it really is something small like a broken taillight, peradventure you lot can convince them that a direct payment will be easier for everyone.

Y'all can make a report to your insurance visitor that the collision happened without filing a merits. Some insurance companies require it. If you don't report information technology and the other driver does eventually file a merits, it could become more complicated for yous.

This cistron is important, though:

Some insurance companies keep records of inquiries and reports, and it could affect your insurance premium rate even if you never file a claim.

How to settle without insurance

If you lot're intent on settling without insurance, hither are v steps you must take in order to protect yourself in the process:

Always exchange contact data with the other drivers. Don't exchange cash or personal checks at the scene of the accident. Instead, go the person's name, phone number, address, driver'south license number, and license plate number. Besides, take notation of the make, model, and color of the car involved. You want to go the other driver'southward insurance data as well — merely in case.
Get a record of the impairment. Accept photos of the damage to both cars. Take pictures of all angles and any signs, signals, or road conditions that might have been a gene in the crash. If you're unable to take pictures, write down notes that detail the damage — where it is on the cars (for case, front passenger door, rear bumper, etc.) and what it looks similar.
Obtain a police report. Some states require a police report if there'due south any belongings impairment. Other states just require one if the property impairment exceeds a certain amount of coin or if there are concrete injuries. If your state doesn't require a police written report, it's still a adept idea to get one if you tin can. It might not exist possible, considering the law might non answer for a very minor accident with no injuries. If they don't, that's out of your command, but it's helpful if they do and worth the phone call.
Get quotes from more than ane mechanic for damages. Whether the harm is to your auto or the other driver's, insist upon at least 2 or iii estimates from mechanics every bit to the cost for repairs. Yous might larn that it'southward more than expensive than you predictable, and it could affect your decision well-nigh whether or non to go through insurance.
Keep a newspaper trail. It'due south important to maintain a record of all correspondence with the other driver, whether it's receipt or payment of coin, or conversations. If you send any documents or money, exist sure to transfer information technology and so in that location'southward proof it was received. Ship checks by return receipt in the mail, or maintain an electronic record if you're doing a banking company-to-banking company transfer. If you're negotiating costs, it's best to have conversations over electronic mail so you take a record of what was said. Telephone calls don't keep records of the content—simply the fact that the call happened. The more you tin document and prove, the amend.
Draft a legally binding agreement when you settle. There are 3 basic elements to contract law:
a. Offering
b. Acceptance
c. Consideration (i.e. money)

Here'south the gamble y'all take when you agree to settle without insurance:

Your insurance company likely requires a report of an blow to be made within a brusk period of fourth dimension. Those time periods vary by visitor, but it could be as little as a mean solar day or ii. Remember, making a report is not the aforementioned equally filing a merits.

Y'all could decide to settle without insurance and non report the collision, but then if your negotiations for a settlement fail, you've lost the power to get through insurance. If that happens, the only pick left is a lawsuit and that could leave you in a worse position than you lot'd have been in if a claim was made confronting your insurance.

Enjuris tip: A minor cannot sign a legally binding agreement. If one of the parties involved in the blow is under xviii years old, their parent or legal guardian would need to sign any legal document.

Should I handle my blow without insurance?

In that location are a lot of considerations when figuring out how yous're going to handle a motorcar blow. But you practise have some time to think it through.

If you can avoid the insurance visitor, you don't take to worry about your premium rate increasing if you were at fault for the blow. That's commonly what almost people who settle privately are aiming to avert — each fourth dimension you lot're at fault for an accident, your insurance goes up a college percentage. And, if it happens also often, y'all could become uninsurable. An blow merits could consequence in a rate increase of 20 to 40 percent.

An insurance carrier often uses a driving violation every bit justification for raising your premium rate. If y'all've had several claims, traffic tickets, or accidents in the past 3 years, you're likely to see an increase in your insurance charge per unit.

If you and the other commuter concur to settle without insurance and so the damages are more money than y'all thought, it could exist besides belatedly to file an insurance merits if the accident wasn't reported. What appears to exist a small amount of damage could amount to thousands of dollars that you lot'd then need to pay out of pocket.

Using insurance rather than dealing with a auto accident privately can save you a lot of headaches. You never know what the other driver is going to do once you leave the scene. They might get habitation, speak with a spouse or friend, then determine that they want more than coin than y'all think is fair.

Enjuris tip: If it'southward a single-car accident and involves merely damage to your own motorcar, become an estimate from a standoff shop. If the toll to repair is less than your deductible, it makes sense to pay out of pocket.

Always follow the law

Near every state requires you to report the blow if there's any personal injury. Although the blow might seem minor, if the occupant of any involved vehicle suddenly feels a twinge in their cervix or a cramp in their back, the blow must exist reported.

Retrieve, you don't want to get into legal trouble considering you decided to salve a trivial money on insurance. Yeah, insurance coverage can exist costly, but then tin can the legal consequences of not post-obit the police force. If you have any incertitude, get through the insurance company in social club to protect yourself.

If you lot file a claim, your insurance company is legally obligated to provide you a defense force to liability or a lawsuit. They must pay the merits, even if y'all're at fault. Too, if the other driver files a lawsuit against yous, the insurance company is expected to defend yous and embrace the judgment, if that's part of your policy. But if you decide to cover the damages privately and something goes wrong, you lot're on your own — you could end up paying for a legal defense and judgment.

Again, if the accident involves merely your car or if it truly is minor, it might make sense to pay for damages out of pocket. Only equally soon equally at that place are questions of liability, personal injuries, extensive impairment, or an uncooperative other driver involved, you're probably best working through your insurance company.