When to Take Cash After a Car Accident (and When to File an Insurance Claim Instead)
Any car accident you walk away from is, relatively speaking, a positive outcome, but even minor fender benders can cause you a lot of hassle: damaging your car and causing possible injury, waiting for the police to show up to file a report, and wasting time dealing with insurance . So when someone crashes into your car and then simply offers you some money if you’ll agree to skip all the trouble, you might be tempted.
In the end, they seem to make it easy for you—admit fault and offer compensation without paperwork, delays, or conflicts. And their motivation is obvious and understandable: they don’t want their insurance rates to go up, or they’re doing something questionable, like driving without insurance, and want to avoid trouble.
But despite all the apparent benefits, there are only a very narrow range of circumstances when getting cash after an accident might be a good idea—and even if you decide to do so, you should still document the incident.
Cons of Getting Cash After a Car Accident
There are many possible downsides to accepting cash to simply drive away from an accident that was not your fault:
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Hidden damage. The accident may seem minor, and your car may not show obvious signs of a major problem at first. If after a day or two your car starts making strange noises or acting strange, it will be too late.
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Hidden injuries. Shock and adrenaline can compensate for a lot, and you may not notice pain or other signs of injury until much later. If you are unable to apply for insurance, medical expenses will be your responsibility.
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Additional expenses. If your car is damaged enough that you can leave it in a repair shop for a while, you may need to rent or be unable to get to work—and it’s unlikely that the wad of cash you took from the scene will cover those extra costs. .
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Fraud. Sometimes drivers will pay cash to keep you from filing a claim as a result of an accident, and then turn around and file a claim with their insurance company to get paid.
For these reasons, you should always wait until the police arrive on the scene to file a report and at least obtain the other driver’s name and insurance information, even if you agree not to file a claim. You may need this information later if the damage to your car turns out to be worse than you thought, or if you discover that you were actually injured in an accident. If the other driver refuses to provide their insurance information, get their license plate number – your insurance company can use it to find their insurance company and contact you on your behalf.
When can you take cash offered after a car accident?
Of course, sometimes the accident is really very minor, and the easiest and fastest way to solve it may be to get some money. But before you make such a decision, you must be sure of the following:
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There was no one in the car, so there was no risk of injury. You need to be absolutely sure that you weren’t injured, which means it only makes sense to accept the money if you weren’t even in the car when it was hit. If you were in a car, even a minor accident can cause injuries that you will find out about later.
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It was a very minor accident. Only accept cash if you are 100% sure that the damage to your vehicle is cosmetic and/or very minor , and you know with some certainty the cost of repairs, or you know it is something you can fix yourself, or that you have won . I’m not worried about getting it fixed at all .
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You have received a police report. If you have an official record of what happened, you’re protected from future claims—and even if you decide to take the cash, you’re likely legally obligated to report the incident and get a police report.
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You have information about the other driver. If you at least have their identity and insurance information, you can avoid future scam attempts.
Keep in mind that insurance companies will not enforce or enforce any agreement you may have with the other driver: by accepting cash and not filing a claim, you are giving up your influence on the situation. If you’re confident there won’t be any problems in the future, taking the money might make sense, but the key word here is “definitely.”