Settling a Car Accident without Insurers

LNo and then on 22/10/2017 - 08:11
Last edited 22/10/2017 - 08:21

So this morning I had a small accident. The young driver, most likely distracted, swiped my rear bumper. No significant damage other than a lot of paintwork came off.

Anyways, his dad calls and says can we sort out the repairs without the hassle of using our insurers. I'll get some quotes from my choice of repairers and he'll pay for the repair. I'm on comprehensive and sounds like the other party has insurance too.

I've never done this before, what are the risks to me if we sort this out without our insurers? Should I still let my insurer know that we are taking down this path?

Automotive

Comments

  • [Deactivated] on 22/10/2017 - 08:15
    +5

    This could mean his dad has a friend who owns a spray gun and a spare tin of paint. Job could be shite and without warranty. Damage could be more than superficial. Your car could be devalued very badly. Go through insurance.

  • No and then on 22/10/2017 - 08:19
    +1

    No no. His dad not doing the repairs. I meant that I go look for my own repairer, get some quotes and he will pay for the repairs.

    No way will I let a random repair my car.

    • [Deactivated] on 22/10/2017 - 08:24
      +2

      Great. Get some quotes. Mutually choose the best. Have dad pay upfront in cash. Book car in for repairs. That's what I would do. Any arguments then call insurance asap. Get quotes on Monday. Worth reporting to police in case you need to go through insurance??

      • No and then on 22/10/2017 - 08:29

        Cool.

        But should I still notify my insurer? What if it doesn't work out and his dad is just dragging out the process? Is there a time frame to tell my insurer?

        I'm just worried the other party is dicking me around and my insurer says too late they can't do anything now.

        • madreece on 22/10/2017 - 09:46
          +1

          This is exactly what happened to me. Did the right thing to help the guy out, spent my time getting quotes, he umms and Ahhs about it for ages, then says that the quotes are too high and he has a mate who will do it for him, so just drop off the car. Screw you mate I was just trying to help you. I put it through the insurance company and then ended up in court for the insurance company because the guy wouldn't reimburse them for the repairs. Ended up costing the guy a pile because of court costs, interest, my lost income for the day etc. I learnt a good lesson that day.

        • whooah1979 on 22/10/2017 - 09:56

          @madreece:

          Ended up costing the guy a pile because of court costs, interest, my lost income for the day etc

          did the courts order him to compensate you for lost wages? all of it or partial?

        • madreece on 22/10/2017 - 09:57

          @whooah1979:

          It was just the lost pay from having to attend court on their behalf, and yes a full days income

        • vinni9284 on 22/10/2017 - 10:09

          Usually you have up to 7 years to claim.

        • whooah1979 on 22/10/2017 - 10:11
          +1

          @vinni9284:

          Usually you have up to 7 years to claim.

          thanks.

        • vinni9284 on 22/10/2017 - 11:11

          @whooah1979:

          You're welcome!

          I'm not sure why I have been negged due to quoting important information that is part of Insurance Legislation (Insurance Contracts Act) LOL!

        • outlander on 22/10/2017 - 13:45

          @madreece:

          I learnt a good lesson that day.

          What was the lesson

        • vinni9284 on 22/10/2017 - 14:39

          @outlander: Isn't it obvious?

        • outlander on 22/10/2017 - 15:53
          +2

          @vinni9284:

          Isn't it obvious?

          Obvious to you maybe, but he might also surprise us. He might say he learnt to always carry a banana in case the judge is a monkey.

          Never know until you ask

      • whooah1979 on 22/10/2017 - 08:33
        +1

        Worth reporting to police in case you need to go through insurance??

        Only if someone was injured.

    • theHMASfriendship on 23/10/2017 - 09:39

      I was in this exact position as a young driver, I pulled into their lane in heavy traffic so low speed and a new front bumper and fog light. Value of the repair was about the same as my third party excess, so I asked them if they could get some quotes, they did, picked the most reasonable one and I paid the panel beaters.

      If they seem vigilant and attentive, and have a good attitude about it, and you're happy to pop round to a panel beater and get a quote or two, then it would help the young driver out.

      But if you can't be bothered then go for your insurance, that's why you pay for it. They can elect to not go through their insurance if they want and deal with your insurance directly.

  • Yttrium on 22/10/2017 - 08:24
    +1

    It's no difference to you either way ,. Through both options you get your car repaired for free.

    He may be trying to keep his 'no claim bonus' on his insurance. So, you are doing him a favour.

    You may consider leaving the superficial damage , and keeping the few hundred $ in your pocket.

    • whooah1979 on 22/10/2017 - 08:45
      +3

      He may be trying to keep his 'no claim bonus' on his insurance. So, you are doing him a favour.

      Op has comprehensive insurance. Op can file a claim with their insurer . It's then the other driver's choice whether they want to contact their insurer. They could settle privately with op's insurer and still keep their no claim bonus.

      • RockyRaccoon on 22/10/2017 - 09:58
        +2

        you have to be careful of what you are saying.

        When the person goes to renew their insurance, they MUST indicate if they have had no accidents etc. Its NOT not claimed accidents.

        Not declaring this may technically void the insurance.

        Most policies will say something like this. eg (from Coles)

        Notify of Changes
        ….
        any collisions occur which involve you or any person who regularly drives your car

        They then go on to say that these may affect your premium,

  • whooah1979 on 22/10/2017 - 08:28

    his dad calls and says can he sort out the repairs without the hassle of using our insurers.

    The real hassle is dealing with diy smash repairs. Call the other driver (not their dad) and tell them that you don't want any trouble with your insurer, and that you advised the insurer what happened.

  • try2bhelpful on 22/10/2017 - 08:31

    Get your mechanic to check there is no structural damage from the accident. This may be legit but get the money up front; there have been other posts where people had issues after the initial "I will pay for it, I don't want the insurance companies involved".

  • Any thing on 22/10/2017 - 08:36

    I’ve done this before when the accident was very minor and my fault. I got a copy of the quote and paid upfront so I didn’t lose my rating 1 no claim bonus on my insurance. It’s your call which way you want to do it though.

  • vinni9284 on 22/10/2017 - 08:47
    +2

    Call your insurance company and notify them regardless even though you don't want to go through them.
    They might take notes over the incident just in case that the repairs or admission of fault go pear shape.
    You normally have 7 years to claim. Rule of thumb.

    Going solo without insurance, these are some factors I would consider.

    How long will the car be off the road whilst it's being repaired?
    Who is going to pick you up and drop you off at the Panel Beaters? Is the Father going to organise this for you?
    How are you going to get around whilst it is being repaired? (1 day - 1 week+)
    Will you get a receipt from the panel beater of the repair considering that insurance companies offer a lifetime warranty?

    It may seem a superficial scratch, however how much inconvenience is this going to cause you with the logistics and time of the repair process?
    Some Panel Beaters will move very small jobs on the side and prioritise larger (more cashflow) jobs hence cause further delays.

    Usually insurance offers a hire car.

    Something to think about

  • o53djz7qTPY4der on 22/10/2017 - 08:59
    +7

    I pay my insurer a huge amount of money each year - I wouldn't even think about not contacting them, especially if I were not at fault. I want my hire car, warranty, piece of mind etc.

    • vinni9284 on 22/10/2017 - 09:12

      Agree. Sometimes honouring a gesture of good will cause a massive inconvenience.
      It seems like the at fault driver wants to have (or maintain) a clean claims history and not get slugged a higher premium next year.
      Furthermore, not pay an excess.

  • TheBilly on 22/10/2017 - 09:08
    +3

    Same thing happened to me. I notified insurer but said I wont claim yet. Got a quote from a normal looking shop, then they just paid and we were all on our merry way.

  • Euphemistic on 22/10/2017 - 09:27

    Not many reasons not to do it. If they are happy to pay the amount for a proper repair, then why not. They are probably trying to cut down on excess or similar. They might want to repair their own car on the cheap and not worry insurance and the potential premium increase.

    If something goes wrong though, like they get difficult or complain about the quotes etc, go straight to your insurer and let them handle it.

  • NancyCat on 22/10/2017 - 09:44
    +7

    What's the point of having insurance if you don't use them? Especially you're not at fault.

    • No and then on 22/10/2017 - 11:39
      +2

      Its a gesture of good will. I've given myself a mental time frame. Seems like i have some time to notify my insurer. If not settled by Friday, I'll call my insurer immediately

      • fantombloo on 22/10/2017 - 11:57
        +2

        I recently settled privately with someone who rear-ended me. My damage was minor (still $1100 in the end). I gave them a specific condition that I will get 2 quotes from my locals and it needs to be settled within a week else I go to my insurer. We settled in good time and everyone was happy.

        Be fair but forthright with your terms and hold the other party to them.

  • PissLUR on 22/10/2017 - 10:44

    Hire car while your car is in repair? Get them to pay that as well.

    • vinni9284 on 22/10/2017 - 11:23

      A hire car that is hired normally (that is from hiring outlets .. Europcar etc) has restricted insurance. For example, even paying the excess for extra cover will not cover the car 100% … roof is not covered, floor pan is not covered etc .. You have to read the fine print.
      That's why it's better to get a hire car from your insurance provider, as your insurance will cover it to the same level as your policy.
      I also have heard of situations that Panel Beaters offer hire cars, however if there is an accident, then you will be liable for excess up to $3000.

    • No and then on 22/10/2017 - 11:40

      I'm ok without a car. During the work week, I use public transport anyways. Plus we have a spare car at home.

  • Randxyz123 on 22/10/2017 - 12:41

    Anyways, his dad calls and says can we sort out the repairs without the hassle of using our insurers

    Translation:" I don't have insurance… "

    Seriously though.

    Get a quote. You don't need to get 3 quotes or anything like that. A quote from a trusted repairers will be fine. Ask the father to meet you at the repair shop to pay.

    If the father makes a fuss and tells you "It's too expensive" go to your insurer.

    • thatonethere on 22/10/2017 - 14:06
      +3

      If the kid is young the excess may well be large and worth it for the dad to pay out of pocket.

  • kerfuffle on 22/10/2017 - 13:00
    +1

    I've been burnt before by people who try to settle out of insurance; now I always go through insurance no matter what.

  • thatonethere on 22/10/2017 - 14:07

    If you can choose your repairer then you will still get warranty. Id include hire car as part of the repair quotes.

    You probably get a better repair job than going thru an insurer.

  • dasher86 on 22/10/2017 - 14:39

    Nothing wrong with settling out of insurance as long as you choose the repaired and you're comfortable with them.
    Dad saying that he wants to settle outside of insurance thinks the damage is less than excess and increase in premiums.
    $650 excess + $500 for a young driver?
    If it's just paint and you're confident and want to be nice, sure use your time to get quotes.

    • [Deactivated] on 23/10/2017 - 07:55

      Coles insurance online quote for the standard excess on their value insurance.
      $2000 excess plus
      $1500 inexperienced driver Levy
      Plus
      $1000 because I have conditions to wear glasses printed on my licence

      I can imagine not using insurer to claims is the best option in most circumstances.

      I wouldn't even bother wasting your times with quotes.
      Take it to Sheens or other 3rd party claim repairer and they will make the 3rd party claim. And do the repairs.

  • eggles01 on 23/10/2017 - 14:45

    get him to give you his quote(s) and ask for copies at the same time, you get 3 quotes and match both lots up against your insurance excess, now another tip is to have all contact with this blokes father and or son via "email"only no discussions over the phone if he does not want to use emails you would have to get in touch with the companies he got the quotes from and if he does not agree to those terms you would have to start sending him a letter of demand for the amount that your repairer has quoted you,the first letter you send him is for an answer within 10 days if he does not respond the 2nd letter of demand give him a 7 days to responds if he stills does not respond I would go to a solicitor and pay for him to write a final letter stating if he does not respond legal actions will be commenced against him for the total amount including the legal and court fees/costs over and above the cost of repairs quote,it has been quite a few years since I had to take this action but I received a cheque for the total amount and I went to my bank and asked them to do a quick check to find out if it was ok and that was it,good luck I hope it helps

    • whooah1979 on 23/10/2017 - 17:19

      if he does not agree to those terms you would have to start sending him a letter of demand

      or op could just claim online with insurer. there is absolutely no need for op to do any of the stuff you wrote.

  • eggles01 on 23/10/2017 - 14:57

    I forgot to mention that if reported to police I would imagine that there would be a negligent driving charge fall on the driver of the vehicle at fault which is another item that would have to consider cheers

  • No and then on 31/10/2017 - 21:39
    +3

    If anyone was interested in the outcome, I ended up going thru my insurer.

    I got the one quote only and he said it was too bloody expensive. I wasn't wasting time chasing quotes so I kindly told him I'm lodging a claim.

    My car is going to the shop this week.

    • dasher86 on 02/11/2017 - 12:47

      good outcome.
      thank you for following up with the results. really helps people in the future when reading back older threads.

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