Auto Insurance Claims: Do NOT MAKE informal arrangements to settle small claims, soft tissue injuries, spring weather

Question
I BACKED INTO A GIRL AT WORK IN THE PARKING LOT. WE EXCHANGED #'S BUT NOT INSURANCE I THEN ASKED HER IF SHE WANTED TO GO THROUGH OUR INSURANCE AND SHE SAID THIS COULD BE RESOLVED WITHOUT GOING THROUGH THEM. I TOLD HER TO GIVE ME AN ESTIMATE OF THE DAMAGES AND ILL PAY SHE AGREED. SHE GAVE ME 1 ESTIMATE AND I JUST WENT AHEAD AND GAVE IT TO HER, CASH HAVING PRENANCY PROBS JUST WANTED IT TO BE OVER. I HAVE THE RECIEPT SHE SIGNED STATING THAT I PAID HER IN FULL FOR DAMAGES. NOW SHE WANTS ME TO PAY FOR HER A RENTAL WHILE CAR IS IN THE SHOP. THATS WHY I ASKED HER IF SHE WANTED TO GO THROUGH INSURANCE. SHE STILL TOOK THE MONEY TO GET HER CAR FIXED THOUGH. I TOLD HER I WOULD PAY FOR DAMAGES INSURANCE WILL NOT COVER ANYTHING NOW IT HAPPENED A WEEK AND A 1/2 AGO AM I WRONG?  

Answer
Dear Monique,

This brings up the lesson of not making informal arrangements to settle claims.  What if this woman calls next week and states that with spring weather she went out to sweep the driveway, and later found that her neck was hurting, and so she went to the chiropractor who now wants her to participate a $4,000 treatment regimen for her soft tissue injuries???

I always advise my AT-FAULT questioners here to get a general release signed that includes ALL CLAIMS KNOWN AND UNKNOWN, INCLUDING PERSONAL INJURIES.

In this case, it depends upon two things: #1 is always the INTENT OF THE PARTIES; and #2 is the written evidence.

Usually, the party whose car is damaged has a right to a rental car while the vehicle is being repaired.  Did you bargain away that right from her?  Did she give up that rental car right just to accept your money?  Why would she give up a valuable right just so she could do you a favor and let you avoid reporting the accident on your insurance?

It seems to me that she would have had no incentive whatsoever to relinquish a valuable right to a rental car in this case because either way she is going to get paid, so what is the incentive for her to forego a claim versus your insurance carrier?

Probably neither of you even thought about a rental car.  If your "receipt" is just that, and nothing more, then she would be able to give oral testimony.   If she had mentioned that a rental car is her right at the time you were discussing the settlement, would you have paid for it or would you have gone thru your insurance?

Here is the problem, who bears the risk of a misunderstanding? If could be that if you have no agreement on this issue, then you do not have a contract.  Hence, she could give back your money and just report it to her own insurance or to your insurance.  

I vote for a split.  Tell her that this was not an item discussed, and not part of the agreement, but in light of her need, you will split the costs of the rental car, provided however, that the maximum per day charge does not exceed $XYZ amount, and provided further that the time does not exceed X number of days.

Best wishes,

Dr. Settlement, J.D. (Juris Doctor)
www.SettlementCentral.Com