It’s not uncommon for drivers to try to handle the aftermath of a car accident without getting the authorities, court, or insurance company involved. In cases where the car accident caused minor damage, sometimes the at fault driver wants to pay out of pocket to avoid hassle.
It may also be the case that you want to avoid filing a claim with your car insurance and risking higher insurance rates for relatively minor crash. However, while initially enticing, accepting cash at the scene for a minor accident may have a negative impact down the road.
No matter how much money the other driver wants to pay, it is usually in your best interest to speak with an attorney first before accepting a cash offer. Most attorneys offer a free initial consultation and can offer you advice on what to do in this particular situation, even without having to involve insurance right after the car accident.
Generally, any money, whether from the other driver or their insurance company, offered upfront is not a great idea. If you were to file a claim and have an official report filed to get your car fixed, you can get more from an insurance policy.
You also never know what injuries or further damage could become apparent after you have already accepted their offer and don’t have their insurance info.
Is it Illegal to Offer Cash After an Accident?
Is accepting money illegal?
It is not illegal for the other driver to offer cash and for the other person involved to accept it. Maryland is an at-fault state, meaning that the driver responsible for causing the car accident is legally obligated to compensate the victim for any damages, usually with collision coverage. If the at-fault driver wants to offer you cash and you take it, this is considered an acceptable form of compensation.
If they do not offer you cash up front after the car accident occurred, you would have to file a claim to pursue compensation through their insurance provider. You are under no obligation to accept the other driver’s offer, even if it seems like more than enough financial support to cover the vehicle damage.
Though accepting a cash settlement at the scene is legal, it is typically a bad idea for a few reasons. Accepting money from the at-fault driver right away may affect your chances of pursuing further compensation. If the other person involved in the car accident didn’t provide their own insurance information or drivers license, you may have no way to contact them.
Even minor accidents can result in injuries where the full extent doesn’t show up until a few days or even weeks later, such as brain injuries like concussions and bruising. The cash offer at the car accident scene likely won’t be enough to cover car repairs and almost certainly won’t cover a rental car, lost wages, medical bills, body shop costs, pain and suffering, or other out-of-pocket payment costs.
What Steps to Take if Cash is Offered
When in doubt, decline their offer and seek compensation for more money through a personal injury claim or even a lawsuit. You are not legally required to accept a cash settlement, even if the other person is comfortable paying it.
Explain that you would prefer to go through your insurance company, and that getting insurance involved is better to make sure things are accurately reported on a driving record, even if it appears like minimal damage is the only accident damages.
If the at-fault driver hassles you or gives you trouble, you should immediately call the authorities. The police should always be called so an official report can be filed.
If an issue arises later, it may be difficult to prove what happened without an official police report if you are the only person reporting an accident.
Why Might an At-Fault Driver Offer Cash Instead of Going Through an Insurance Company?
You may wonder why the at-fault driver would rather pay out of pocket than go through an insurance company. In a minor accident, they may not think it’s worth the hassle to report accidents or make insurance claims. However, hidden damages may mean that while the offer money adequately covers at first, it does not accurately reflect the property damage of the car accident.
There are many reasons why the other at-fault person may want to pay out of pocket to another driver following a car accident, such as:
- The at-fault driver may not want to file a claim with their insurance due to the hassle or because they are worried it will raise their insurance premium.
- They may worry about the accident going on their record.
- They may not have insurance and fear being caught driving without coverage.
- They may be in a hurry or do not feel like waiting while the police arrive or dealing with the lengthy process involved when a claim is filed.
- In a single-car accident, the only at-fault person involved may not want to be responsible for additional accident property damage.
Zirkin & Schmerling’s personal injury lawyers know how to build a strong case after car accidents. Call 410-753-4611 today for a case evaluation.
Why You Should Not Accept Cash from an At-Fault Driver
Cash offers seem attractive at first but are typically not as much as you could get if you were to file an official claim. Even if the at-fault driver offers to initially pay out of pocket for your injuries, repair costs, or damages once you receive your bill, there is still no way of knowing what could happen down the road.
Car damage may be worse than you thought
Once you take your car, you may find that the repair costs are more extensive than the out-of-pocket settlement rough estimate allowed for. There may also be damage that isn’t initially apparent that may require you to take your car back in for repairs at a later time that you are now responsible to pay.
Injuries may be worse than expected or may develop over time
Even if you feel fine at the scene, you may find that your neck or back starts bothering you later on and you need medical care. You could even develop complications from your injuries that affect your ability to work that you have to pay.
You may develop mental trauma
Our bodies are often in shock right after an accident, limiting our ability to process what has happened. However, you may find that weeks, months, or even years later, you suffer from mental anguish related to the accident that leads to medical bills you need to pay.
Why File a Car Insurance Claim?
When you file a claim with a car insurance company, you can receive full compensation and pay for damages from a car accident such as:
- Medical expenses, current and future
- Loss of wages, current and future
- Car repairs
- Pain and suffering
- Mental anguish
Zirkin & Schmerling Car Accident Lawyers
If you have questions about a driver offering you cash after an accident, you should always speak to an attorney before agreeing to anything. If the at fault driver wants to pay out of pocket, just call our team and we will guide you through the process.
At Zirkin and Schmerling Law, we understand the hesitation of filing a claim after an accident and can help guide you through the process to make it easier.
Contact us or call us at 410-753-4611 to set up an appointment with one of our personal injury attorneys today.