It happens frequently: After a car accident with no injuries and negligible damage, the drivers involved settle without involving their respective insurance companies and without the official police report. Unfortunately, many times this arrangement just doesn’t end well.
According to experts, the only way you can be sure that you will receive compensation for your damages is by filing an insurance claim.
Take the following incident as an excellent example of the above.
I was minding my own business as I drove down the quiet country road where my house is located. Suddenly, I felt the force of a crash as another vehicle hit me from behind. I got out of my car to see the damage. To my surprise, the other driver, the one who had caused the accident, was my good friend and neighbor.
“Sorry,” John said with a shy smile.
“Don’t worry about the damage, I’ll take care of it myself. We don’t involve the police or the insurance companies. This way, there is no risk of an increase in the insurance premium, as usually happens after making a claim” .
At the time, it didn’t occur to me that there would be any problem with this arrangement. After all, John and I were friends, neighbors who met regularly.
“Sure,” I answered. “If that’s the way that works best for you, I’ll agree.”
Well, the story didn’t end on a happy note. I fixed the rear fender and sent John my receipt, not thinking there would be anything to worry about.
I was wrong.
It’s been 60 days since the accident, and I have yet to receive my reward from John, who has no shortage of excuses and promises that the payment will come…
The above scenario repeats itself over and over again after minor collisions.
Drivers beware!
Even if the other driver is your trusted friend, neighbor or acquaintance, there is never a 100 percent certainty that you will see payment for the damages he or she caused.
In a case where the responsible driver fails to meet their monetary commitment, time has passed and it may be too late to offer adequate justification regarding damages and who is at fault.
Additionally, the responsible driver may betray your trust and report the accident to their insurance company. He or she can go even further with treason by misrepresenting the facts and lying about injury claims that were never present at the time of the accident. If this happens, your insurance company may have to send a large payment. It can also bring a lawsuit against you, as well as force you to pay the rest of what the courts deem your obligation after your insurance company has reached the coverage limits of your policy. Finally, he will face an unpleasant increase in premium.