by Guest » Thu Oct 31, 2013 12:37 pm
My daughter (17) caught in a minor accident at a stop sign and it was she who was at fault. She smote the car in front of her. Since the damage was small, the other driver and she both mutually agreed on not reporting the incident to the insurance company and simply get an estimate and pay out of pocket. Today we received an estimate from that driver which is approx. $350 and prepared by a local dealership.
Here goes my question: Should I pay the amount; ask for more estimates; or report it to my insurance? It would be better if I could have a few more estimates in order to make sure that the cost is reasonable. But I don’t want to hurt the other driver as he and my daughter have together decided not to report it to the insurance company. Moreover, if I pay out of pocket, is there a boilerplate document that I could ask the other driver to sign so that he can’t demand more later.
The incident took place in Michigan which is a ‘no-fault’ insurance state.
Here goes my question: Should I pay the amount; ask for more estimates; or report it to my insurance? It would be better if I could have a few more estimates in order to make sure that the cost is reasonable. But I don’t want to hurt the other driver as he and my daughter have together decided not to report it to the insurance company. Moreover, if I pay out of pocket, is there a boilerplate document that I could ask the other driver to sign so that he can’t demand more later.
The incident took place in Michigan which is a ‘no-fault’ insurance state.
Posted: Thu Oct 31, 2013 01:00 pm Post Subject: Accident
Here's the deal if you can pay this out of pocket you can, but did your daughter exchange insurance information with the other party ? if she did whats to stop the other party from taking your money and then calling your insurance company filing a claim against you and since you would have admitted that this occurred they will pay her again. Also there are other cost the party can demand diminished value of the car factory parts and a rental car while their car is being fixed these are all legitimate cost associated with a accident. Also FYI there is no such thing as NO-FAULT someone always is at fault NO-FAULT refers to the medical PIP etc... regardless of fault there is medical coverage for the policy holders auto if someone in that auto is injured as a result of a accident
Posted: Fri Nov 01, 2013 05:48 am Post Subject:
Respiol is correct. If you intend to handle this privately, then you need the other party to sign a release of liability form absolving your daughter of any additional responsibility for "smiting" the other vehicle. Without that, the claim could be presented twice.
Although that could be construed as insurance fraud, it would probably not be prosecuted. And the claim might be paid which would cause your insurance to increase in premium cost.
At only $350 in damage, this is probably well below the reporting threshold, so why bother the insurance company. Just type up a Release of Liability letter for the other party to sign, and then hand them a check for $350 and don't lose the release, just in case.
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