Motor vehicle accident cost, insurance claim required?

[spider]

My vehicle was rearended today on the DVP, it happened at very low speed. no one was injured and damage was not catastrophic. The driver who caused the accident was very apologetic, concerned about my wife and forthcoming with all the information normally exchanged in such an event.

I called my insurance company a few hours later to inform them of the accident, minimal information was exchanged and I was told that a person would call me shortly for more detail. They have not yet called.

When I was on the phone the driver who hit me called to offer to cover the cost of repairs to my car rather than have his insurer jack up his rates. He claimed that his insurer suggested this solution. He pleaded that he was a young fellow trying to make a living for his family and couldn't manage higher insurance premiums. His car is a 1999 model and he carries no collision coverage.

I would like to help this fellow out and told him that when I speak to my insurance company I will mention the recommendation made by his insurer and ask my insurer their opinion of such an arrangement. Will it place me in the bad books of the insurance industry or is it just plain illegal.

Any experiences or advice on this matter?

 

[Tuscani01]

Definitely not illegal, and many people settle this way regularly. It is usually better for both parties to avoid insurance claims unless someone is injured or there is a lot of damage. You may not have been at fault, but a claim could still affect your insurance rates. I would say take it to a mechanic, see how much it would cost to repair and see if the other driver is willing to pay for it.

 

[BurlOak]

Definitely not illegal, and many people settle this way regularly. It is usually better for both parties to avoid insurance claims unless someone is injured or there is a lot of damage. You may not have been at fault, but a claim could still affect your insurance rates. I would say take it to a mechanic, see how much it would cost to repair and see if the other driver is willing to pay for it.

I generally do not trust the insurance industry. I have heard that the value of a claim does not matter - a claim is a claim. I also heard that once you notify the insurance about an accident is counts as a claim - even if you do not use them. The only time I did a cash deal was when the other party paid me before I could contact insurance.

 

[Marko]

Not sure how you resolved this, but yes, you can absolutely take care of matters privately. The less either of your insurance companies know about these minor issues the better. They can't use them against you if they don't know about them. The law does not require you to report minor collisions.

I got rear ended once recently - also very minor. I mean, the paint on my bumper didn't even crack, though there was definitely marks from the woman's license plate. I told her that I wasn't worried about the damage. and not to call the police, since she would be the one who would be negatively affected by such a call. I told her before calling the police or insurance, to call a friend or someone who she trusted for advice, but she was very defensive and thought I was trying to pull something. I said "Look, there's not enough damage for me to care and the time we're sitting here blocking traffic is worth more to me than the damage. Let's pull aside, exchange info and just get out of everyone's way" but no, she insisted on staying exactly where we were. I asked if she could call her dad and she said she doesn't talk to him. I asked "Do you have anyone you can call who has some street smarts?" which she became really insulted by and said she was street smart.

She was on hold with the police when I waved goodbye, got in my car and just drove away. Her face in my rearview was priceless, but I did her a favor, really - because even if there was no damage or claim - just the fact that she was in a minor collision where she rear ended someone would probably impact her insurance. I hope someone eventually explained that to her.

The rear-end scammers take advantage of the fact that people want to make private arrangements. No one wants to call the police or their insurance, so even for the most minor rear bumper dings, they will try to extort several hundred dollars from you.

This was on the 401, for example:

[video=youtube;MtH_rU2MgGU]http://www.youtube.com/watch?v=MtH_rU2MgGU[/video]
The guy was exposed and busted for pulling this repeatedly, which is a common scam among Tamils who are often coerced into doing this by unsavory types who threaten or blackmail them into raising money for them this way. Many are newcomers who owe a snakehead money for getting them into Canada and this is just one of the ways they game the system.

In short, if you're ever driving behind a car with tail lights that don't seem work properly, keep your distance.

 

[spider]

The end.

I called my Insurance Company and the other guy's Company called me, I told them both that the guy who hit me offered to pay for repairs to my car instead of registering a claim and suffering a large increase in his rates, neither of them had any problems with this arrangement. I acquired a couple of quotes, both were in the $750 range.

I felt badly for a young family guy suffering the consequences of this accident having thought I had been in his presumed financial circumstances myself at his age. I did a little research and discovered that he was indeed a lawyer and a google map view of his address displayed a much nicer home than I have ever owned. I reconsidered my position and remembered that I am the victim here and should not be complicating the whole thing unnecessarily. If I become the body shop's client rather than the Insurance Company I don't get a loner car while mine is in the shop and any complaints I may bring forward regarding the time taken to repair the car or the quality of the work done will likely be largely ignored as I am a one-time customer with no leverage.

I called the other guy and informed him of my decision, he wasn't happy but I have to look out for myself here. I called my Insurance Company with my decision, they will inform the body shop and I am waiting for the work to be scheduled.

All parties involved were very interested in details of personal injuries if any.