Over 3 million insurance quotes
Compare Quotes from 30+ Car Insurance Providers and Save
Compare Quotes from 30+ Car Insurance Providers and Save

Deal or no deal?

July 22, 2009

No one wants higher insurance rates, which is why making a deal with another driver to not report an accident to your insurance company seems so appealing – but that doesn’t mean it’s a good move.

For example, if you’ve gotten into a fender bender where you are not at fault, which resulted in minor damage to both your car and the other driver’s and where neither of you got hurt, why not make a deal with the driver, where he covers the cost of the damage out of pocket? He’ll simply get an estimate and pay you for the damage - easy as that. There’s no need to get the insurance companies involved and risk an increase to your rates.

Sounds simple enough, right? But should you do it?

Let’s look at some of the consequences of accepting a deal like this from another driver.

Consequence: You’re doing each other a favour, right? Wrong. You’re only doing the other driver a favour with no benefit to you. By cutting a deal and not getting your auto insurance provider involved, you’re shortchanging yourself. You’ll get no rental car coverage while your car is being repaired, your auto insurance company will be unable to help you through the process and if any extra repairs or health issues come up, you’re on your own in terms of covering costs.

Consequence: The other driver can offer you a deal, but he can then backtrack by going to his insurance company anyway  -   then you look guilty because you didn’t report the claim.

Consequence: Oftentimes, an insurance company will have a preferred mechanic shop for you to go to, which will guarantee the work done. Going independent means you don’t get the guarantee  - or your insurance company standing behind you. Going it alone means you may end up paying way more money for repairs than if you had gone with the set rates agreed upon by the insurance company (since they are covering the cost) and the auto repair shop.

Consequence: Sometimes a minor accident can cause a residual physical injury that arises after the accident is long over, which means that, since you cut a deal, you may not receive any medical benefits from your insurance company, as they don’t even know about the accident.

Consequence: You run the risk of being charged with leaving the scene of an accident if the other driver decides to report the accident after the fact. You must call the police if the accident results in physical injury or property damage over $1,000.

Consequence: You don’t know if the other driver is being legitimate and honest - or if he or she is conning you. Laws and rules are put in place for a reason. By not contacting the police and your insurance provider, you may be opening a proverbial Pandora’s Box of trouble. Not only will you be more vulnerable to higher costs for taking care of the situation yourself, you may also be found guilty by the law for not reporting the situation. It’s not worth trying to protect your insurance premium in the long run, especially if you are 100 per cent not at fault. If you did not cause the accident, you have nothing to fear - your rates won’t be affected.

Fortunately, there are easier, safer ways to keep your insurance rate low. InsuranceHotline.com allows you to get quotes from over 30 insurance companies to ensure you are paying the lowest rate available.

  • Ms curious

    What about the reverse you are at fault

  • Mr Obvious

    then i’m the one reading this and thinking shady things about you.

  • Noah Marchand

    Well what if someone was test driving my truck and then they hit someone and said they would pay for the damages and will not pay for them? Am I supposed to pay for them? What if I don’t? Also the person bought the truck after the accident took place

  • InsuranceHotline

    If there was damage to any other property, (a tree, guardrail etc) then it is likely that the police will notify your insurance company to have them pay to repair the damaged property. So your company may find out about the accident anyway.

  • InsuranceHotline

    If you were the last car in the chain reaction it is likely that you will be at fault since you rear ended the vehicle ahead. You can report the incident to a collision reporting center so that there is a record of the incident.

  • http://stewartesten.ca/ Stewart Esten

    In Ontario, if you’re injured in a motor vehicle collision and another person is at fault you may be entitled to sue for compensation with respect to the losses you have suffered including; loss of income, pain/suffering, health care expenses, and other losses. Sometimes you may not realize that you have suffered from a personal injury at the scene of the accident. If you do not report it and an injury comes up later, you will not be able to move forward. If you are injured in a car accident you may also want to get contact with a reputable personal injury lawyer.

  • Maria

    Hi one of my coworkers hit my car his car is fine but mine is all bad we both don’t have insurance so we decided to not call the cops he said he’ll pay but now he doesn’t want to pay the repairs of my car . What should I do ?

  • InsuranceHotline

    Since you both have no insurance coverage, you may check to see if you can obtain payment from the other driver via small claims court.

  • Carlos

    I got in a car crash but minor and you share insurance information. But I didn’t call your insurance right after what should I do?

  • InsuranceHotline

    You should contact your insurance now if you are making a claim.

  • InsuranceHotline

    It sounds like they are not going to report or make a claim if there was no damage.

  • Cody Winegarden

    Hi everyone, I had a question

    So today I was forced to back up and didn’t see another driver flying behind me and my tailgate went through there front end, long story short, I claimed it through my insurance, and reported it, so far it doesnt seem like they have, and my insurance company says it’s not my fault, my question is, if they dont report it within 24 hours, does that imply they cant dispute it later? And should i have been notified about the accident from the other drivers insurance company by now? Hope this is easy to read

  • InsuranceHotline

    you should check with you province or state to see how long someone has to report a claim. In most cases is would be much longer than 24 hours.

  • Joseph Aikens

    Hi everyone,

    In november i had a fender bender with a unisured driver. They offered 2 pay out of pocket so they wouldnt get towed. So i sent them the invoice which was 1800 they paid 800 of it but now their avoiding my calls. Is there anything i can do since i didnt report it 2 my insurance or the cops.

  • InsuranceHotline

    You might have to take them to small claims court to have the remaining balance paid.

  • InsuranceHotline

    You should be ok. You have proof on your phone that you had discussed with the other driver at the time of the incident.