Out-of-pocket or use insurance?

[adelia401]

I got into a minor car accident where I was at fault. The driver captured it on video. He is sending me an estimate of the costs which I believe will be anywhere from $500-1000. It's all only paint scrapes and maybe a tiny dent.

I would like to cover the costs out-of-pocket so my rates don't increase. My concern is the following scenario- I pay him the cost the repairs, he doesn't get the job completed with the cash, reports the accident so he can get the money from my insurance company, keeps my original cash and I get screwed with higher rates. We did not exchange insurance information but has my plates on the video.

I guess what I'm getting to is that if he screws me, can I prove to my insurance company that I already paid out of pocket for the repairs? Say if it's like venmo or paypal payment, I would label it as "car repair" so there is a trail of the funds? Any guidance would be appreciated, thank you.

 

[fed up]

What if he decides to sue for pain and suffering, or a rental car, or lost wages? Turn it in to your carrier and think about possibly reducing coverage to offset any increase upon renewal

 

[adjusterjack]

I would like to cover the costs out-of-pocket so my rates don't increase. My concern is the following scenario- I pay him the cost the repairs, he doesn't get the job completed with the cash, reports the accident so he can get the money from my insurance company, keeps my original cash and I get screwed with higher rates. We did not exchange insurance information but has my plates on the video.

Exactly why you should let your insurance handle it.

What if he decides to sue for pain and suffering, or a rental car, or lost wages?

There's another good reason for letting insurance handle it.

can I prove to my insurance company that I already paid out of pocket for the repairs?

However, if you are determined to do this yourself, google "Release of All Claims."

You'll find many samples. Use one that is all-inclusive and isn't just limited to property damage. Pick one that has a notary space for it and have it signed and notarized. Keep the original in a permanent file.

think about possibly reducing coverage to offset any increase upon renewal

That's a shock coming from an insurance agent.

 

[Al3x Lee]

I guess what I'm getting to is that if he screws me, can I prove to my insurance company that I already paid out of pocket for the repairs? Say if it's like venmo or paypal payment, I would label it as "car repair" so there is a trail of the funds? Any guidance would be appreciated, thank you.

Which company is your insurance with?

 

[fed up]

That's a shock coming from an insurance agent.
Some people are simply hung up on monthly premium. I give ALL options of pricing, never a recommendation. If premium goes up $30 per month because of an at-fault, maybe dropping rental or towing will offset some of that. Adding a second policy can get a discount, adding a device can save some short term cash.

 

[Allen Trent]

I have done this several times when my teen kids & wife hit cars in parking lots or driveways. Essentially, you are settling out of court. Get signed releases, there were no injuries & this settles cost of damages in full

 

[adjusterjack]

That's a shock coming from an insurance agent.
Some people are simply hung up on monthly premium. I give ALL options of pricing, never a recommendation. If premium goes up $30 per month because of an at-fault, maybe dropping rental or towing will offset some of that. Adding a second policy can get a discount, adding a device can save some short term cash.

That makes sense.

You scared me for a moment.