Auto Insurance Claims: No insurance - car accident, uninsured motorist accident damages

Question
I was in an accident i rear ended someone, i had no insurance at the time, he is now saying he took his car to a mechanic in his hometown. The machanic is saying the frame is broken and can not be fixed. The man i was in the accident with has suggested i give him 4,200 dollars for his car and i can have the car. I feel like this can not be my only option, however I am not sure where to go from here. I understand i am responsible and I am willing to pay, but i do not have alot of money and would have to make some kind of payment arrangments. This is alot of questions in one, but any opinions would be great. The option i see is to take it to court, again this is not to get OUT of anything just to have someone see that it is fair for both partied, bu i was told that court might be the ugly way to go.

Answer
Malia,

  It would help to know the State where this occurred, without the State information this will be a general answer. . .

1.  If the vehicle damages would cost more to repair than the vehicle is worth then you essentially would need to do as he is suggesting as it will be the cheapest way to pay for the damages because you could then sell the wrecked vehicle to a salvage yard at the highest bid and get a little money back.  

2.  I would get a second opinion on the estimate.  We audit estimates all the time at our company, and a lot of times, parts and labor can be greatly overcharged in an estimate.

3.  A judgment from an auto accident can be very damaging to your privilege of having a driver license if you can't immediately pay it off.

4.  Payment arrangements are common for this type of thing.  I mean, come on. . it is logical to believe that if one was uninsured it might have been due to their lack of money, so it is unlikely they can come up with $4000.00 all at once.  

5.  Be careful to get everything in writing because if he is also collecting money from his insurance company, you are going to need to prove to them that he has made a separate agreement with you in order to get them off your back.

6.  Offering settlement options to the other party is a good way to negotiate.  You need to know how much the damage is and agree upon that first.  If you can't pay to have them assessed fairly on your own, then you either have to take the mechanic's word for it, or go to court to have a third party (judge or jury) decide the amount of damages.

7.  There is such a thing as ADR (alternative dispute resolution).  This is a general term describing mediations and arbitrations.  We have performed arbitrations between two parties that agreed to it voluntarily and it is normally cheaper and more "amicable" way of resolving a dispute.  

So you are right, there are many options and more than I could list in this answer.  Your job is to negotiate the best deal that still takes care of your responsibility.  If you can't do that, then you have to let someone else do the negotiating, either a judge, jury or an arbitrator.  I would bet that if you had a credible opinion on the value of the damages and or/vehicle you could settle.  I you would like to discuss your case further, look us up at www.pettydetailsllc.com.

I hope this helps.