Settling car accident privately

colliehandy

Hi there,

Does anyone know the procedure for settling a car accident privately?
I hit the front of a car today and there was minor damage to the bonnet and side of the car.

Do I still need to inform my insurer of the accident?

If it is settled privately which I suggested is there any documentation I need to get signed to show we have settled the matter?

Sorry for the naive questions but I am quite new to driving so any advise you could offer would be a big help.

Thanks!

ironclaw

You should inform your insurer and make a statement to your local Garda station. These won't count against you, but they will help in the the next thing happens: The person you hit, depending on their moral ground, might suddenly escalate their few scratches on the bonnet to a full medical claim (Assuming they were in the car)

Assuming that doesn't happen, the other person has the right to have their car repaired when and how they wish. You can't object to a quote they give you. They might even just want the cash and not get it repaired at all. Its their right, so be prepared for that. Also, depending on the car, the damage could be expensive. A front bumper with a full respray could be upwards of 1 to 2 kEUR (Assuming no underlying parts were damaged)

Assuming they get a quote and are being amicable about it, just sign an agreement between you regarding the accident, what was repaired, how much it cost, who paid and when, and that the other person is fully satisfied the claim is resolved (Including medical) It won't save your bacon if they do decide to come back for more on the medical side (As statue of limitations are like 7 years here), but it may act as a deterrent.

Ultimately, unless the person is being very nice about the whole thing, you may be better off just letting your insurers handle it.

colliehandy

Thanks ironclaw. The agreement between us, is this something I would draft up myself or will a generic one (I have found some from other insurers online) suffice?

ironclaw

colliehandy wrote: »

Thanks ironclaw. The agreement between us, is this something I would draft up myself or will a generic one (I have found some from other insurers online) suffice?

Its literally not worth the paper its written on, its merely just formalising what happens. If they want to retrospectively come back and claim more damages, they can. Judge the person you are dealing with, if there is any indication that it may turn nasty or claims are getting multiplied, instantly deal with your insurance.

biko

Check with your insurer if you can go through them but pay the insurer back as to not lose ncb etc

RGS

Statute of limitations for personal injury is two years, EXCEPT for those under 18.

It's 6 years for property damage.

Always report the incident to your insurers to protect your interests If the matter escalates.

ScouseMouse

If you do proceed this way, MAKE SURE any written agreement includes IN FULL AND FINAL SETTLEMENT, signed by ALL parties.

biko

OP, you should ask in Legal Discussion if such a document has any legal authority at all.

Sue Pa Key Pa

From my experience as a claims handler;

Yes there are some decent people out there and they are happy to settle privately and move on. However, there are many instances where the wrongdoer handles it all wrong, ends up in the manure and the claim spirals. This usually occurs when the wrongdoer won't accept the other party's estimate and starts insisting his mate will fix it. The next thing you know, the 3rd party gets fed up, reports the matter to the other persons insurer, along with a sore neck. Then the wrong doer's insurer gets annoyed because you have breached your policy conditions by not reporting it to them and by negotiating settlement yourself. Indemnity can be refused, but the 3rd party will be paid.

Other scenario is where everything looks fine, repairs are effected and both parties go on their separate ways. Within 2 years, an injury claim is notified to your insurers. You've left them with no defence having admitted liability and the claim will be paid in line with medical evidence. Insurers have the right to seek recovery from you.

The best solution is to let your insurers handle all matters, using their expertise and assessors to finalise the claim and you can repay their outlay to remove the claim from your records (for rating purposes). Most won't ask you to repay their investigation costs. Remember, whatever route you take, you still had an accident which is declarable

mikeoneilly

Does it generally cost more to let the insurance deal with a 'damages' claim and then repay the insurance out of your pocket.

It certainly seems to be the safest option ,and you have less hassle too as insurance is handling the matter.

Sue Pa Key Pa

mikeoneilly wrote: »

Does it generally cost more to let the insurance deal with a 'damages' claim and then repay the insurance out of your pocket.

It certainly seems to be the safest option ,and you have less hassle too as insurance is handling the matter.

Regardless of which way you go, the 3rd party is entitled to go to a garage of their choice. An insurer often goes through the estimate with the garage and agrees revised prices, so it can be cheaper. Also, like I said above, most insurers don't ask you to repay their admin & investigation costs.

By far the biggest cause of things going wrong in trying to settle privately, is the person who caused the loss, refusing to accept the extent and cost of repairs. From what I know and see, I would never try and settle any incident I was involved in privately

harr

Happened to my sister....small tip in her car with a person she knew fairly well.They both agreed my sister could pay from her own pocket...minor damage costing €400 ...car was fixed everyone was happy.
3 months later personal injury claim made for €25,000 and sisters insurance paid out no questions, she lost her no claims and is paying a fortune for insurance now..

5rtytry56

RGS wrote: »

Always report the incident to your insurers to protect your interests

Do this OP if you haven't done it already.

NUTLEY BOY

Mod is there any scope for a sticky on the do's and don'ts of what to do after an accident ?

Several threads are recurring in particular where people wondering about settling privately - a practice which I discourage strongly.