- At-fault drivers may offer to pay for damages out of pocket to conceal a lack of insurance or protect their insurance rates or driving records.
- Agreeing to private payment may mean losing your ability to secure full compensation for injuries, lost wages, etc…
- To protect your rights, consult an accident lawyer before accepting any payment offer or arrangement.
After a car accident, the standard procedure is for both parties to exchange insurance information and resolve the matter through insurance coverage. But what if the at-fault driver wants to pay out of pocket for your damages, without involving insurance companies?
It can be challenging to know how to respond, especially when you’re unfamiliar with the law, but there are risks involved in paying out of pocket for a car accident. At DiBella Law Injury and Accident Lawyers, we are here to provide advice and resources so drivers can make the most appropriate choice.
Why the At-Fault Driver Might Suggest Paying Out of Pocket
If a driver suggests paying an out-of-pocket settlement for a car accident, they may be hoping to prevent an increase in their insurance premiums. Insurance companies typically raise rates after a person is determined to be at fault for an accident. Thus, not going through insurance can help drivers avoid paying more for insurance premiums. Â
A driver may also be concerned about their overall driving record. In Massachusetts, an at-fault accident is what the state calls a “surchargeable event,” and accruing too many of these can lead to license suspension.Â
Paying out of pocket can seem reasonable, but it’s easy to underestimate the damages resulting from an accident. Car accident injuries and damages may initially seem minor, but a closer look reveals more serious issues. If the driver finds out later that they have suffered severe damages that they can’t afford, they might regret not using insurance.Â
Alternatively, some at-fault drivers lack insurance or have insufficient coverage. Offering to pay might be an attempt to hide that they are not properly insured.
Steps You Should Take if the At-Fault Driver Proposes Out-of-Pocket Payment
The moments immediately after an accident are stressful and upsetting. Facing an at-fault driver who wants to “keep insurance out of it” is an added stressor that can be difficult to handle. Stay calm and follow these key steps.
1. Politely Decline the Offer
Accepting out-of-pocket payments immediately after the accident is extremely risky because knowing the full extent of the damages is nearly impossible. Tell the other party that you plan to follow standard protocol and proceed with an insurance claim without being confrontational or suggesting blame.Â
2. Exchange Information
Massachusetts and New Hampshire law requires drivers to exchange their information after an accident. New Hampshire explicitly requires drivers to provide their name, address, license number, vehicle registration, insurance provider, and policy information.
Massachusetts requires drivers to show their license and registration, which should display some of the required information. You’ll need to ask for the other driver’s insurance details and their phone number. This information is crucial to protecting your rights.
3. Document Everything Thoroughly
Photograph and video the accident scene, including any vehicle damage and visible injuries. Photograph the vehicles involved from every possible angle and add written commentary where necessary.Â
Take detailed notes documenting the accident scene, including details like traffic signs and signals, vehicle positions, debris, skid marks, and road conditions.Â
Get contact information from any witnesses. Do not discuss the fault for the accident. Anything you say might be twisted to harm your claim. Most importantly, do not apologize or admit fault.Â
4. Seek Medical Attention Immediately
Your health is your top priority after any accident. Seek medical treatment even if you feel fine or don’t think you have serious injuries. Some accident-induced injuries don’t show symptoms until later, but doctors know what to look for and may be able to identify the damage. Document all appointments and keep copies of your medical records.Â
5. Report the Accident to the Appropriate Authorities
In addition, both Massachusetts and New Hampshire require drivers to report any accident that kills or injures someone or causes damage exceeding $1,000.Â
In Massachusetts, drivers must notify the Registrar of Motor Vehicles within five days and send a copy of the report to the local police department with jurisdiction over the road. In New Hampshire, drivers must notify the Division of Motor Vehicles within 15 days unless the police have investigated the accident.
6. Do Not Sign Any Agreements or Releases
If the at-fault driver offers to pay for your damages out of pocket, they may provide you with a written agreement. Signing could mean waiving your rights to any future compensation for the accident. Consult a trusted car accident lawyer before agreeing to anything.
7. Get a Professional Estimate of Damages
Never agree to another driver’s assessment of how much the damage will cost. Take your vehicle to a reputable mechanic or body shop for a thorough inspection. Request a written estimate and save it to your records. Even if you end up negotiating a car accident settlement without insurance, this estimate will help you pursue full compensation.
8. Contact Your Insurance Company
Even if you are considering not filing a claim, inform the insurance company that the accident occurred. Some policies require this notification, and failing to provide it can put your coverage at risk. Informing the insurer also establishes a paper trail to support your claims.
The Risks for the Accident Victim When Accepting Out-of-Pocket Payment
Some drivers accept private payments because they assume they would receive the money regardless, so it doesn’t matter where the funds come from. That’s not usually true. Consider these scenarios when deciding whether to accept an out-of-pocket payment for a car accident.
Hidden Damages and Unanticipated Costs
Vehicle damage and injury symptoms may not show up immediately after an accident. For example, if you were in a rear-end collision, you might only start showing symptoms of whiplash the next day. Whiplash is one of several injuries that can become symptomatic later, and many can leave you with significant long-term issues and costs.Â
You may even miss work and lose wages, worsening the situation. If you agreed to an initial out-of-pocket payment, you may end up having to shoulder those costs yourself.
Difficulty Pursuing Full Compensation Later
If the initial payment doesn’t cover the costs of your accident, pursuing additional damages can be challenging. The at-fault driver could change their mind about covering your costs or refuse to pay the full amount.
Documenting the out-of-pocket car accident payment is essential, but you may need more evidence and legal backing to pursue full damages.
Lack of Documentation of the Accident
Insurance claims provide official records of the accident and evidence of the damages involved. If you accept out-of-pocket payment, you may not have any proof of what happened or the costs involved.
Potential for Disputes and Legal Complications
Insurance companies require documentation of the accident and damages to support claim payouts. Without this structure, disagreements over the cost of repairs or treatment can lead to costly legal battles. This is especially true in complex situations, such as rideshare accidents, where multiple parties might share liability.
No Guarantee of Payment
Some drivers may offer to pay for damages personally, only to back out or avoid contact. If you haven’t gone through insurance, your options for enforcing the agreement may be limited.
Why Consulting With DiBella Law Injury and Accident Lawyers Is Crucial
For over 20 years, we have provided expert legal advice tailored to the legal landscape of Boston and beyond. We start by evaluating the full extent of your damages, including anticipated future costs. Once we have determined the potential value of your claim, we will communicate with the at-fault driver and insurance companies, if they become involved later.
Our team adeptly handles the complexities of the legal process, even in difficult situations such as hit-and-run accidents. Trust us to protect your rights, safeguard your interests, and push for the maximum available compensation.
We will work to negotiate a fair settlement on your behalf, keeping you informed every step of the way. Our client testimonials testify to our professionalism, empathy, and dedication to your rights.
Get Professional Advice Before Agreeing to Anything
If an at-fault driver has suggested paying out of pocket for car accident damages, DiBella Law is here to help you get paid. Contact our experienced personal injury attorneys at (617) 870-0907 or contact us online to schedule your free consultation.