When an accident is minor and no injuries have been sustained, it may make sense to settle without insurance; however, doing so could leave you responsible for medical costs or car repairs incurred by other drivers involved.
If the other driver was injured and you failed to report the accident, they can file suit against you for their losses – this is why it’s always wisest to work through your insurance provider when handling an incident.
1. File a claim with your insurance company
At the scene of an auto accident, it may be tempting to reach a settlement agreement with the other driver in order to split up costs of damages. But this approach can be risky; without knowing their financial status you don’t know whether they have enough funds available for repairs. Furthermore, most states require drivers to have insurance; without it you could face license suspension or even revocation and an auto insurer may assess penalties such as filing an SR-22 or FR-44 form as required to reinstate coverage.
Filing a claim with your insurance provider is the best way to avoid these penalties, whether online, through mobile apps, or with an agent over the phone. Once your information has been submitted and a claims adjuster assigned, they will assess its value before awarding you compensation based on your coverage.
Maintain receipts for services you require following an accident, such as roadside assistance or rental car rentals. Your insurance provider may reimburse you for these receipts. It is also wise to save any photos taken of the scene as well as a police report as evidence.
Once you file a claim with your insurance company, an inspector will visit to assess any damage and injuries. They’ll take into account how the accident happened as well as repair costs; you should provide as many details as possible to make the process smoother for everyone involved.
If the adjuster’s assessment of your accident does not match with what has happened or they do not provide adequate compensation, or offer, you have other options available to them. A lawsuit can be costly and time consuming; however, filing one forces both insurers involved to work harder at proving their case in court which could result in higher settlement offers from both sides.
2. File a claim with the other driver’s insurance company
When involved in a car accident, regardless of who’s at fault, certain steps must be taken immediately after. First and foremost is making sure everyone involved is okay, then calling the police so they can create a report. Thirdly and lastly you should exchange insurance information and take photos of both vehicles’ damage – this includes exchanging insurance information as well as photos. Furthermore, make a note of any details surrounding how and why this happened as this will help with future recall.
Avoid admitting fault for an accident, yet also pay attention to any financial damages. Although you might think paying privately could be easier, paying them yourself could pose risks if the other driver disputes. They could decide to file a personal injury suit against you instead and the amount settled won’t cover all damages.
Insurance companies provide the ideal way of splitting payments over time rather than receiving all at once, while protecting you from being taken advantage of by unscrupulous parties. Furthermore, if it can be proven that another driver caused your accident and their policy covers these expenses too – they are then obliged to cover any judgment awarded against you in a subsequent lawsuit.
Insurance companies typically provide rental cars while your vehicle is being repaired and medical expenses and lost income related to injuries that prevent you from working are covered by them. They’ll also assist with paperwork and documentation needed for making a claim; advise on your legal rights, options and provide free consultation services in order to determine what would be the most beneficial course of action in each situation.
3. Negotiate a private settlement
Considerations should be given when deciding whether or not to settle a car accident privately, including factors related to one’s financial circumstances. For minor collisions without serious injuries or extensive damages, paying out-of-pocket repair costs might suffice; but in cases involving more significant injuries or damages where fault is unclear it would likely be better handled through insurance providers.
Preexisting medical conditions that might complicate a settlement should also be taken into account. If an injured party had preexisting illness or injury that has worsened as a result of an accident, their insurer will likely not compensate them as compensation will already have been covered by someone else. Furthermore, multiple health insurers covering parts of an injured person’s care could increase this complication further as each insurer will want their share before covering more treatment that has already been covered elsewhere.
Preparing to negotiate a private settlement requires that an injured party or their lawyer review all documents related to the accident, such as medical bills, property damage reports, witness statements and demand letters. When writing such letters it’s also essential that all damages and losses be detailed – this may include calculations using Kelley Blue Book or Edmunds for actual value of vehicle, medical care costs associated with your care, loss of income due to permanent disability as well as pain and suffering damages.
Finally, it’s always wise to conduct all settlement discussions in writing to protect both parties should new information arise or another driver changes their mind. Furthermore, taking photographs of both cars’ damage may help if both parties decide not to settle through insurance companies.
As part of any collision report, it is always wise to obtain the other driver’s name, contact info, and insurance policy number as an added measure of protection should something go awry and they back out or cause further damage to their vehicle.
4. Get quotes from more than one mechanic
Accident repair work can be critical in recovering from any car crash, from minor to major. To make sure you’re not being taken advantage of, getting multiple quotes before choosing a mechanic is recommended in order to obtain an accurate picture of local average costs of repairs and negotiate better deals to save money.
Building relationships with mechanics is also beneficial, as they may provide lower rates on car repairs or replacements in the future. Keep an account of every payment transaction and contact with them to create a solid case in case an insurance claim ever needs to be filed later on.
If you are involved in a minor accident and no one was hurt, it may be tempting to simply pay out-of-pocket instead of filing an insurance claim. But this can have serious long-term repercussions: without car insurance you could become responsible for medical expenses, property damages and more that could cost thousands in fines and legal fees; additionally if your loan provider can sue for remaining balance on loan balance.
Assuming you have enough cash on hand, if you have enough to cover the cost of an accident out-of-pocket it’s certainly possible; just be mindful of how much repairs or replacement will actually cost. Also make sure you carry uninsured/underinsured motorist coverage (UM/UIM), which will protect you in cases when an at-fault driver lacks car insurance altogether or has only minimum limits; for example if an uninsured driver caused you damages totalling $10,000 then this coverage can cover up to 60% of repairs/replacements costs (for instance UM/UIM coverage covers up to $60k total of repairs/replacements).
