Subject: NJ Car Accident – Should I Settle Privately or Involve Insurance?
Yesterday, I was in a minor car accident where I (driving a 2023 Kia Sportage) accidentally scraped and dented the passenger doors of another vehicle (a 2003 Toyota Echo). My car sustained only minor cosmetic damage to the fender. The police arrived, but we chose to settle privately and did not file a report. We exchanged insurance information and took photos of the damages. The other driver mentioned she would visit her local mechanic for an estimate and let me know the repair costs. Given the age of her car, it’s likely not worth more than $2,000, and it already had pre-existing scratches.
Before I make any payments, I plan to have her sign a written settlement agreement. However, I’m concerned that her mechanic may take advantage of the situation since I’m at fault. I have a clean driving record and prefer to avoid a hike in my insurance premium. If her repair costs exceed my deductible of $500, should I go ahead and file a claim with my insurance (Geico)?
Given your situation, there are a few factors to consider when deciding whether to settle privately or go through your insurance.
Cost of Repairs: If the mechanic provides a quote that is significantly higher than your $500 deductible, it may be worth filing a claim with your insurance. Since you are at fault, your rates might increase regardless of whether you file a claim, but it could help you avoid out-of-pocket costs exceeding your deductible.
Documentation: Since you’ve already taken photos and have her signature for a settlement agreement, this documentation will protect you if any disputes arise later. Make sure the agreement outlines the costs and any other relevant details to avoid misunderstandings.
Insurance Implications: Even though you want to avoid a premium increase, remember that if you choose to settle privately and she later decides to file a claim, your insurance will still need to be involved, which can complicate matters.
Potential for Additional Costs: Some mechanics may inflate repair costs, particularly in situations where someone else is at fault. Having a written agreement can mitigate this risk, but you might consider getting quotes from other mechanics yourself to ensure fairness.
State Laws: In New Jersey, if you do settle privately and it goes poorly, you could be liable for more than you initially agreed to. It’s crucial to ensure the agreement is clear about full and final payment for all damages arising from this incident.
Overall, if you’re uncertain about the cost of repairs or feel that the mechanic may take advantage, it might be safer to file a claim with Geico. They can provide you with guidance on the best course of action while also protecting you financially in the case the repair costs exceed what was initially communicated.