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Car accident claims rarely get settled in hours or days. In fact, a person might find they spend months waiting to receive a settlement. As a result, many people are tempted to take a cash offer at the scene of the accident if the responsible party offers to pay out on the spot. If they don’t, the insurance company might offer a quick settlement.
This leads many people to become suspicious. Why are they willing to pay out so quickly? What are they trying to hide? Is it even legal to do so? Could the person who is not responsible for the accident get into trouble for taking the offer? These are only a few of the many questions a person might have in this situation.
However, they feel as if they are on the clock when it comes to deciding whether to take the offer. For this reason, they may agree to do so only to regret it later. What do drivers need to know in this situation? When should a cash offer be taken, if ever? Would this make life easier when they are dealing with car accident injuries?
Is Offering Cash at the Scene of the Accident Illegal?
A person needs to know whether they will be engaging in an illegal act if they accept cash at the scene of an accident. It is not illegal to do so, but most people receive compensation following an insurance claim rather than a cash offer. For this reason, a person might decide to forego the hassle of filing a claim, take the cash, and walk away. However, why would a driver make this offer if they pay for auto insurance each month? Shouldn’t they allow the insurance company to handle it? Isn’t that why they pay their premiums?
The other driver may not want to deal with filing a claim. They could worry this will raise their premium or they simply don’t want the hassle of dealing with the insurance company. They feel it is more convenient to settle the matter at the accident site and be done with it.
On the other hand, they may not want a citation on their driving record. This could affect their employment or lead to an increase in their insurance premium. It might also be that they don’t currently have auto insurance, and they don’t want others to know they have been on the road without coverage.
If a driver offers cash at the scene of the accident, it’s important to keep these things in mind. They are probably trying to hide something. Although it may seem beneficial to accept the cash and have the matter resolved, there is no way to guarantee that will be the case. The responsible party is looking out for their interests rather than yours, so keep this in mind when deciding what to do in this situation.
What Can Go Wrong with a Cash Offer?
Multiple things may go wrong when a person accepts a cash offer at the scene of an automobile accident. Unfortunately, the following situations are very common. Consider these when determining whether you should go this route or insist on filing with the insurance companies.
Injury Coverage
When a person accepts a cash offer on the spot, they have no coverage for their injuries. Often, injuries aren’t apparent immediately following the accident, as adrenaline is rushing through the person’s body. It isn’t until later that the aches and pains become obvious. When you fail to report the accident to the insurance company and take cash at the scene, the medical bills become your responsibility. This can become costly, depending on the extent of the injuries.
Repeat Repairs
Insurance companies often contract with repair facilities to guarantee any repairs made to the vehicle. If an owner pays out of pocket for the repairs, they may not receive this guarantee. When the same thing goes wrong with the car shortly after the work has been done, the owner may find they must pay to have the repair carried out again. This can be avoided by filing a claim with the insurance company of the responsible party.
Rental Car Coverage
Insurance companies typically pay for the cost of a rental car when a claim is filed and the other party’s vehicle must be fixed. A driver may be under the impression their insurance will cover the cost of this rental car. However, it won’t unless a claim has been filed. The cost of renting the vehicle then comes out of the owner’s pocket rather than being covered by the responsible party.
Insufficient Funding
Nobody can say how much damage has been done to the vehicles immediately following the accident. For instance, the vehicle may appear okay but have frame damage. This can only be seen with an inspection by a mechanic. A person might have whiplash that doesn’t become apparent for a day or two after the accident. Although the responsible party may offer significantly more than what the accident appears to be worth, a driver might find that the funds provided at the scene are only a fraction of what will be needed for medical bills or to repair the car properly.
The Responsible Party May File a Lawsuit
Sadly, a person might fall victim to an insurance scam if they take cash at the scene of a vehicle accident. A dishonest person may cause an accident and then offer cash at the scene to resolve the matter. The victim agrees to this offer, cash exchanges hands, and both parties leave the scene. The dishonest driver may then go home and file a police report, claiming the victim was actually at fault for the accident.
This leads to the victim being held accountable. They automatically appear guilty as they left the scene of the accident and didn’t report it. In addition to appearing guilty in the eyes of the insurance company, the police may charge this individual with leaving the scene of the accident. This depends on the extent of the damage and the injuries sustained.
The victim might turn to their insurance company for assistance in resolving this matter. The insurance company will have a problem validating the insured’s story, as the evidence may be gone by the time the incident is reported to them. This happens more often than people realize, so take care when considering a cash offer. There may be a reason the other party is pushing for this resolution.
Additional Compensation Isn’t Considered
Drivers need to recognize they may obtain compensation for additional expenses if they go through an insurance company rather than taking a cash offer. This includes lost wages and expenses related to hiring outside services to help during your recovery. Filing an insurance claim ensures the victim isn’t required to pay for these expenses out of pocket.
Necessary Information
When a driver accepts a cash offer at the scene of the accident, the parties rarely exchange insurance information. If additional expenses arise resulting from the accident, the victim has no insurance company to call. They may attempt to contact the driver responsible for the accident, but this individual may refuse to take the call. They feel the matter has been settled and have nothing left to say to the victim. This leaves the victim holding the bag for any expenses the cash offer didn’t cover.
When Must the Police Be Involved
Depending on local and state laws, law enforcement must be called for certain accidents. In the state of Texas, any accident must be reported to the police if a person in the accident sustains an injury or dies as a result of the crash. Furthermore, if the accident results in $1,000 or more of property or vehicle damage, the drivers must report it to local law enforcement. This must be done within ten days of the accident.
However, it is best to contact law enforcement as soon as the accident occurs. This allows the officer to visit the scene of the accident and gather pertinent details right away. Drivers may then request a copy of the officer’s report to share with the insurance companies and possibly an attorney.
If you remain unsure about accepting a cash offer, it’s best to decline it. Legal advisors say a person should never accept a cash offer, as there are too many uncertainties associated with doing so. Go through the other party’s insurance company. This protects you in the event the accident was worse than you believe in the aftermath. It’s your financial future, so don’t take any chances. Doing so could affect your life for years to come.
Never assume the other party has your best interests at heart. They aren’t trying to save you time and money. They are trying to pay out the least amount possible for their mistake. If you keep this in mind following an accident, you’ll know a cash offer isn’t the best move. On the other hand, filing with their insurance company is never a wrong move.
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