How do you protect yourself when settling to pay for damage in cash in a small accident?

Question

Recently, here in California, I was at fault in a small accident. Rather than report the accident to the insurance company, both parties agreed that I would pay for the damage in cash and that the accident would not be reported to the insurance company. However I provided information of my insurance to the other party. Now I would like to know what type of document I would use to show that payment for the damage was made and that the other party promises not to make a claim with the insurance company.

Thanks in advance for your help. Any links to the proper documents would be great.

Answer 1

If the damage was more than $250 you would be obligated under California law to file a report and notify your insurance, regardless of whether the two of you agreed to not do that. Of course you could "say" that the damage to a wrecked car was not greater than $250 if you weren't experts, but your low-ball figure cannot go too far against Kelly Bluebook or it would be considered fraud. I know you think the insurance company should not have a say, but by signing a contract with them in the first place you put not only your but their interests at risk. Chances are nobody gives a darn about it, though. Get the release notarized and the amount mentioned would have to be $250 or less by law. I know a lady once who did just what you guys did and she gave the guy she hit $249 to be right under the limit (according to her the damage was too slight to notice, but beggars can't be choosers). Don't lose any sleep.

Answer 2

You should use a release that indicates the information on the accident, the date, location and that in exchange for your payment the other person is agreeing to take no further action and releases you from any liability or further payment. If that sounds like too much for you, you may want to get some legal help. You won't be protected from further action unless a release is signed by the other person. And even then, who knows what the person might claim later about whether he understood what he was signing if he tried to sue later.

Answer 3

Get a statement of settlement in full and release of any further liability from the other party before handing over any money. It would be worth consulting with an attorney to make sure you get it right. Then if they should file a claim with their insurance, show the insurance adjuster the release and they'll deny the claim.

Answer 4

You should have them sign an agreement that this settles the case and they cannot pursue you any further.

Have them sign and date an agreement and make sure to keep a copy of the payments that you made to them.

You need to have some kind of wording in the paperwork that this agreement is a full and final release of all claims against you in the accident that occurred on xx/xx/2006, in City and state.

Answer 5

In my opinion if I got into an accident, and I was at fault, then I would PAY BY CHECK, so that you have a copy in your checkbook, and SECOND: I would make a contract so that the proof is on the CONTRACT and ON THE COPY OF THE CHECK. Have the contract reviewed by a lawyer so that nothing is missing. Good Luck!

Answer 6

I'd pay by check rather than cash so you will have a record of the payment and amount. I can hear Judge Judy now, do you have a receipt for the amount you paid?

Answer 7

get a release signed by the other party. Go to claimspages.com and you will be able to download a general release. Once signed, you will have the protection you need. P.S. make sure that the release is notarized!!!!

Answer 8

You are trying to buck the system of fat cats that live a lavish lifestyle off of people's misfortune. Shame on you taking the caviar right out of the mouth of some shyster lawyer.

Answer 9

if you have to do it like this,,write out an agreement,,and you and the other party sign it,,in front of a witness,,i do not recommend t be done this way,but i had a friend that done it this way,,and later on he got in a law suit over it,,because they didn't have any thing stating that the transaction had taken place,,so please protect your self well in this case,,i wish you luck with it,,i hope this help,s.

Answer 10

Get the agreement in writing and have it notarized