QuestionQUESTION: I was involved in an accident which was my fault. A car was stopped ahead of me at a light and I was coming up on the car. Something fell off the passenger seat and as I looked down to see what it was and came back up I was on top of the other car. I jammed my breaks and ended up tapping the car in front of me. Today the person called me and said I left an indentation of my license plate in the bumper and it needs to be replaced.
In this case do I simply give my insurance info to the other person and let them file a claim. What will happen to my insurance now? I'm a little concerned as this is the first accident I ever had where it was my fault
Thanks!
ANSWER: Hi Scott,
There are a couple of things to think about here. First and foremost, PROTECT YOURSELF AGAINST ANY LATER PERSONAL INJURY CLAIM. What would happen if you paid them $1,000 in cash, only to receive a lawsuit demand for injuries one year later? My advice: if you are going to pay for property damage to an occupied vehicle, be darn sure that you also get the occupants to sign off releasing you from any liability for personal injuries.
Why? Well, any hit on another car that was hard enough to leave an imprint of your license plate is hard enough to cause soft tissue injuries. The funny thing about that kind of injury is that it often seems like a small annoyance for quite some time, and then about ten days after the accident it can become like a constant ache. That is when they seek medical help as it has by then developed into a full blown injury case.
So, if you are going to settle this yourself, be forewarned to make sure you get a general release for “all personal injuries suffered, known and unknown.” Just add those words to the release document you are going to get them to sign if you pay this out yourself.
Next, I would explore the damages issue and I would explore the definition of “at-fault accident” for purposes of raising your auto insurance rates. For the latter answer, contact your state insurance commissioner http://www.settlementcentral.com/links.php. She has made rules as to what can be called an at-fault accident. These usually include a monetary minimum, .such as $750 in damage in order to qualify. So even if it were at-fault, the value of the repairs might not raise to the level whereby they can increase your rates.
As for the bumper damages, call around to a shop convenient to the owner and discuss how such repairs should be made. If there is no structural damage, then some kind of cosmetic repair might be possible. Once you have that answer, then get in touch with the victim and have him take the car in for an estimate.
HERE IS ONE ADVANTAGE of dealing with an owner who is still indebted to a bank on his car loan. The bank is going to insist that he have the vehicle repaired. Thus he will not see a dime of the money.
What this guy is going to do is to drive with your license plate imprint still on his bumper and pocket the repair money you pay to him. So, if it is a late model car that is likely financed, or if thru delicate questioning you can find out that it is still under financing, then you can get a discount by telling him that you will handle it between the two of you. Thus, you can tell him that if you report the accident, the insurance will see on the title that the bank is the legal owner, and they will insist upon the repairs being done. BUT, ON THE OTHER HAND, if he will accept some lesser amount directly from you, no one will know that the repairs were never done. In that case, offer him 60% of the cost of repairs. I will bet that he will take 70% and pocket the money.
Best Wishes,
Dr. Settlement, J.D. (Juris Doctor)
Http://www.SettlementCentral.Com
---------- FOLLOW-UP ----------
QUESTION: Thanks for the advice. The owner told me the car was a "classic vintage" car and that the bumper was not easy to find (it also had the sensors on the back so you dont back into anything). He seemed to want to go through insurance. I asked him about handling it outside and he told me it would probably be easier and chepaer to go through insurance.
Your thoughts?
AnswerWell, Scott, I think it is time to bring in your insurance. That is what you pay them for, and this thing threatens to cost a lot more than your minor rate increase.
Your rate increase will be for only three years. And, who knows, maybe the amount to fix it will be less than that allowed by your state insurance commissioner for at-fault accident designation by your insurer.
Best Wishes,
Dr. Settlement, J.D. (Juris Doctor)
Http://www.SettlementCentral.Com
