In the event of an accident that has only left one or both vehicles with a slight dent or scrape, would it be worth it to go through your insurance company, or more convenient to handle it on your own? Sometimes, you can settle privately after a car accident without insurance. But should you?
It is not always clear how to proceed after a minor car accident. A private settlement should only be considered in minor car accidents. Unfortunately, car accidents that seem minor may actually be serious. For example, a little dent in the bumper could be the surface of more damage that isn’t obvious, like structural damage. The most important aspect of dealing with a car accident privately is that both parties must be on the same page. If you think the other driver might prefer to take the case to insurance, you will also need to make sure you file a claim with your insurance company.
If you’re unsure if you should settle privately with the other driver after a car accident, contact us at Calandro Law for a free consultation. Our team of car accident lawyers in Riverview has extensive experience in this area. In this article, we’ll answer common questions that follow a minor accident and the proposal to settle privately. We’ll also discuss the risks of settling privately and why you should always report an accident.
Reporting Your Car Accident is a Must
How this question is answered depends in large part on several factors, including the facts and circumstances of the accident and where you live.
Many states require people to report any car accident that causes an injury, even if it only results in minor damage. Drivers in some states are still required to report accidents that exceed a certain amount in damages. In the state of Florida, if the damage is greater than $500, it must be reported to local law enforcement.
Can You Settle Privately After a Car Accident Without Involving Insurance Companies?
Minor collisions often go unreported by people due to two reasons:
- Drivers assume that their insurance rates will increase
- Drivers assume they can reach an agreement without involving the insurance companies
You should know that every auto insurance policy in the country requires policyholders to report accidents immediately. Failing to notify your insurance company of an accident may result in significant consequences down the road. It could complicate your situation and may cause you to incur penalties later.
The only situation in which you might avoid reporting an accident to the insurance company is if the accident causes no injuries, happens in your own car on your own property, and only damages your vehicle. For example, if you damage your garage door or a fence near your driveway, there is no dispute about fault and the cost of repairs with another party.
Suppose you and the other driver agree to settle without insurance; the damages are significantly larger than expected. If you didn’t report the accident earlier, it may be too late to file an insurance claim. You might not realize it then, but a small amount of damage may turn into thousands of dollars you will have to pay.
Insurance may be a positive thing to use in your car accident, as you never know what the other person will do once you leave the accident scene. They might go home, speak to a friend, and then decide they want way more money than you anticipated.
Car Accident Private Settlement Letter – What to Know
The private settlement letter follows an agreement between individuals who have been in a car accident. In a private settlement letter, the signers of the vehicle agreements agree not to contact their insurance companies. Instead, they will pay out-of-pocket for any resulting damages.
The driver at fault may not report a minor accident with no injuries to the insurer. Even small car accident claims can raise insurance premiums. Working with an insurance company can also be lengthy. It might not be worth your time to convince the company to pay for minor damage.
The Risks of Trying to Settle Privately After a Car Accident
If you settle privately after a car accident, it benefits the driver responsible for causing the accident. The main reason drivers don’t file insurance claims is to avoid higher insurance premiums.
Whenever a negligent driver hits you, you should speak with an experienced car accident attorney before entering into any payments or a private settlement. You must be aware of these hidden dangers before signing a private settlement agreement after a car accident.
The cost of repairing your car may be higher than you expect
Visible car damage may not be the full extent of the damage. Even minor dents can result in the need to replace an entire bumper on a car. Also, car accidents can cause damage that isn’t readily visible, especially since more cars run on computers to operate safely. Even though a private car accident settlement involves an estimate, there can be more extensive damage as the car is serviced.
Treatment for your injuries may be more extensive than you anticipate
It may be problematic if someone is injured and you settle privately after a car accident. Injuries from car accidents are not always as minor as they seem. It’s common for pain to get worse over time or to appear after the accident. A private settlement letter usually entails releasing each other from any additional claims. This means if you find out that you’ll need ongoing medical care, you won’t be able to go back and ask for more money.
You Might Be Underestimating Your Damages
You cannot fully understand your damages without an exhaustive auto accident investigation. If you are involved in a car accident, you are entitled to compensation for your car repairs and medical treatments. If you missed work due to the accident, you are also eligible for compensation for lost wages. You may also be reimbursed for alternate transportation, travel for medical care, and other expenses related to your accident.
If you settle privately after a car accident, you may have left with no time to consider all eligible damages. You might not know how much compensation you are entitled to if you have not yet had your car repaired or sustained additional injuries.
It is possible the other driver is not honest or reliable
If you settle privately after a car accident, you trust a stranger to pay you money. It’s hard to tell if they’re trustworthy and reliable, whether they’ll pay what they say they will, or how to proceed in a dispute if they disappear. Consult an experienced car accident lawyer, at the very least, before you sign the contract. Calandro Law offers a free consultation. We provide insight into the situation by evaluating how much your claim could be worth.
It could create a problem with your insurance company
Your problems may become worse if you settle privately after a car accident and it fails. Perhaps you would need to contact one or both insurance companies for more information (such as the actual costs of your damages) or because the other driver isn’t paying. When you wait too long to notify an insurance company about an accident, they may be unable to investigate it or refuse to seek payment on your behalf.
An insurance policy usually includes a “cooperation clause.” That clause specifies how you must cooperate with your insurance company after a car accident, including letting them know when an accident occurs. It is the insured’s responsibility to report vehicle accidents and contribute to the accident investigation promptly.
Chances of Winning a Car Accident Settlement
Even in a minor accident, you can’t be sure how much you’ll need to pay in damages. This is why reporting, instead of deciding to settle privately after a car accident, is so important to your insurance company. Also, your chance of winning a car accident settlement in Florida increases when these factors are met:
Get sufficient proof that the other driver was at fault
Witness accounts, photos of the accident, and police reports are possible sources of this proof. A good attorney will be invaluable in proving who was at fault for the accident. Upon reviewing your claim, a lawyer will inform you if you lack sufficient evidence of liability.
Prove sufficient damages that warrant compensation
Your medical records, income loss documentation, and experts’ testimony—in this case, your doctors—should be used to prove your damages claim. However, if you select the “verbal threshold” option while applying for auto insurance, you will probably face more problems. For this option, you must meet certain criteria to prove that the injury results from pain and suffering.
Get an experienced car accident attorney on your side
You aren’t required to hire a lawyer if you are involved in a car accident, but opting not to hire one could hurt your chances of receiving the full compensation you deserve. Those who do not have representation are more likely to walk away with denials of their claims, and if they do recover compensation, it is often for less.
At Calandro Law, we’re experienced in all sorts of car accident and personal injury claims, from minor to serious. If you’re on the fence about how to proceed if the other driver wants to settle privately, contact us for a free consultation.
Contact the Car Accident Lawyers at Calandro Law
Andrew J. Calandro is among 5% of Florida’s Super Lawyers. He’s a top-rated personal injury lawyer in Riverview, Florida, and provides legal services for various case types. Andrew Calandro has also been selected to Rising Stars for 2021.
Schedule a free consultation today by calling us at (813) 563-6463 or filling out the form on the right side of the page.
