For most people, resolving a motor vehicle accident claim means pursuing compensation from the at-fault driver’s insurance company. This can involve a drawn-out claims process and might even result in attorneys filing a lawsuit on your behalf. Eventually, the insurance company typically makes a settlement offer that the injured party accepts, bringing the case to an end.
But what if the other driver in an accident offers cash to compensate you following an accident? Often, their intention is to resolve the case on their own without the need for insurance companies or lawyers to intervene. The reality is that accepting money from the other party can complicate things for you and even put the recovery of any insurance proceeds at risk.
Is Accepting Money From The Other Driver Legal?
There is nothing unlawful about accepting money from a driver who has caused an accident. While you cannot get in trouble for accepting these funds, doing so can have other legal consequences. It can complicate any potential insurance claims, especially if the other driver claims you accepted the money with the understanding that it was in exchange for waiving any personal injury claim you might have against them.
It is important to remember that just because accepting this money is legal does not mean doing so is in your best interest. Before you accept anything from the other driver, you could benefit from first speaking with an attorney about your accident.
The Reasons Why You Should Not Accept a Cash Offer
The prospect of securing a cash payment immediately following an accident can be tempting. Legal claims take time to work their way through the court system, and some insurance companies might refuse to pay anything at all. Despite the convenience of being paid directly, there are many reasons why it may not be a good idea to accept.
When the other party offers money after a crash, you should assume the intention to be in exchange for waiving your right to sue them. After all, they must expect something in return — otherwise, this money is just a gift. The problem that arises at this point is you can only settle your case once. If you later learn you did not receive enough, you do not have the opportunity to go back and ask for money.
Your Injuries Could Be More Serious Than You Realize
The extent of your physical injuries might be much worse than you initially realize. Some symptoms can take time to develop, especially when it comes to conditions like traumatic brain injuries. If you accept cash in exchange for dropping your claim, your condition could worsen after the settlement is completed.
Your Car Damage Could Be Worse Than You Thought
The damage to your property might also be far worse than you initially realized. Modern vehicles are designed to crumple on impact, which dramatically reduces the severity of injuries. The downside to this approach is that it can result in significant property damage even when the impact is relatively minor. If you settle your case for cash right away, you might not have time to get a full picture of what your repair bill might look like.
You Might Develop Emotional Trauma
The extent of your emotional distress might not be immediately obvious in the aftermath of an accident. Often, you are unable to process what just happened to you. For some people, it can take weeks or months to fully grasp the extent of your trauma. Accepting cash before you resolve these feelings can leave you undercompensated.
Why Might a Driver Offer Money at the Scene of an Accident?
Every driver has their own reasons for why they might prefer to settle a case with cash instead of resolving the case through normal channels. Most of the time, this is done to avoid filing a claim on the at-fault driver’s liability insurance. Although the insurance policy will cover the cost of the accident up to the limits of the policy, the driver could find themselves facing elevated insurance premiums moving forward. Many people would prefer to resolve things directly instead of dealing with the cost and hassle of an insurance claim.
Other drivers do not have insurance coverage at all, and they hope that an immediate cash payment could resolve the case without getting cited for driving without insurance coverage.
There is also the potential for an individual attempting to resolve the case directly instead of reporting the accident to their insurance due to the risk of having the crash go on their driving record. Not only could this increase the cost of their premiums, but it could also lead to points on their license that might eventually lead to suspension of their driving privileges.
At the end of the day, these reasons do not matter for your purposes. What is important is that you discuss your options with an attorney before reaching an agreement.
What to do If You Are Offered Cash After a Crash
It can be hard to turn down a cash payment after being hurt in an accident, but that is generally the best option. You could be entitled to far more if you pursue an insurance claim through the appropriate channels. Accepting that money could put your claim at risk.
Instead, it is best to turn down any cash payments, especially those made at the scene of the crash. Instead, get the other driver’s contact information and insurance details to help facilitate a potential settlement with their carrier. This will protect you from missing out on the full value of your claim.
Talk to an Attorney After a Collision
It is likely not in your interest to accept a cash payment from the at-fault driver following an accident. While this money might provide for your needs as you recover, it can get in the way of getting the full compensation you deserve.
Before you settle your case, you could benefit from a discussion with Gomez Trial Attorneys. Our firm can aggressively pursue the compensation you deserve through an insurance claim or personal injury lawsuit. For help, contact Gomez Trial Lawyers today for a free consultation by calling 866-TRIAL LAW (866-874-2552) or by contacting us online.