Can I settle directly with the other driver instead of going through insurance? I was backed into by a commercial vehicle, and the company’s representatives were trying to gather as much information as possible to shift the blame onto me. I told them that I didn’t want to get into a lengthy dispute; I just wanted my car fixed, so I asked for a check to resolve the matter. The representative mentioned she would inform the claims adjuster. However, I’m concerned that if I go this route, it might jeopardize my ability to file a claim later. What if they never pay me and I end up with no recourse? I’m located in California, by the way.
Can I settle with the other driver outside of insurance?
It’s understandable to want to resolve everything quickly, but settling with the other driver’s insurance company outside of formal insurance channels can have implications.
In California, if you agree to a settlement, it’s important to ensure that it fully compensates you for your damages – including repair costs, medical expenses, and any other losses. By accepting payment directly from the other driver (or their insurance) without using your own insurance, you may be signing away your right to pursue further compensation later, especially if a more significant issue arises after the fact.
If the driver’s insurance does not pay out or doesn’t offer a fair amount, you might find yourself unable to file a claim later if you’ve already settled. It’s generally advised to document everything and, if possible, consult with an attorney or your own insurance before accepting any settlements to ensure your rights are protected.
If you decide to settle, make sure to get everything in writing and consider including a clause that protects your right to revisit the settlement if new damages are discovered. Always proceed with caution.