Best Way to Pay Car Accident Repair Privately? - Yes, Comprehensive Insured

HodiernAl on 01/10/2022 - 22:06

Alas, I'm adding to the vast number of posts about car crashes.

My friend (fully insured, comprehensive car insurance) scratched a car when reversing out and exchanged details with the other driver. I've seen the pictures, and it looks like it might be a few hundred dollars to repair, much less than the insurance excess cost and impact on future premiums. The other driver has said they are happy to take the car to a panel beater to get a quote.

What's the best way to organise private repair that's mutually beneficial? Should my friend:

  • Pay the other driver directly e.g., bank transfer? (What stops the other driver from lodging an insurance claim anyways?) Pay before or after the repair?

  • Pre-pay the panel beaters from the quote directly to ensure the damage is fixed?

  • Go with the other driver to their repairer of choice and pay in person? (May not be practical as they live 50+km away)

In any scenario, my friend is happy to pay the other driver an extra $50 for their time going to panel beaters to get quotes etc.

First time either of us has had an accident and don't want to get burned for not going through insurance. TIA

Automotive

Comments

  • Hybroid on 01/10/2022 - 22:16
    +6

    First option. Agree a value, transfer the funds and be done with it. Getting an agreement in writing signed by both parties is always a good idea.

    What they do next, whether they fix or not, go to insurance or not, do it themselves or sell car etc is not your (friends) problem anymore.

    • HodiernAl on 01/10/2022 - 22:18

      Is there anything stopping the not-at-fault car from 'double dipping' and trying to get their insurance to chase us even if we've transferred them? Just the risk to their own insurance premiums?

      • trapper on 01/10/2022 - 22:22
        +2

        Only the criminal justice system, like for any other crime.

        • HodiernAl on 01/10/2022 - 22:24

          haha right, yes that too

  • trapper on 01/10/2022 - 22:22
    +1

    Ask for a quote and if satisfied with the amount then just do a bank transfer or pay cash. I'd ask for a written receipt also.

    It's not your concern if the other driver tries to defraud his insurance company, or decides not to have the damage fixed.

  • PensionerXXL on 01/10/2022 - 22:38

    gift cards?

  • JimmyF on 01/10/2022 - 23:20
    +2

    I've seen the pictures, and it looks like it might be a few hundred dollars to repair

    LOL you'll be in for a shock then!

    • HodiernAl on 02/10/2022 - 08:25

      I’m hoping not, but that’s what the insurance is for. The not-at-fault driver was nice enough to go for a quote, so worth a try imho

  • pegaxs on 02/10/2022 - 08:22
    +2

    Get everything in writing.

    Get them to get a quote they are happy with and make a contract for that price. Get them to sign the contract stating that once paid, the contract is considered finalised and no more damages can be sought.

    Ask them if they want the money directly or if they want you to pay the repairer directly. When you go to pay, get the contract signed that payment was paid and accepted in total and only pay it using a traceable payment system like PayID/EFT/bank cheque, NEVER in “cash”. Cash is untraceable and it becomes hard to prove you paid anything when using cash.

    If the damage is significantly more than than the premium, just use insurance. (And trust me, there is a good chance it will be well more than you think it is.)

    • HodiernAl on 02/10/2022 - 08:26

      Thanks, I’ll pass your tips on

  • AdosHouse on 02/10/2022 - 09:31

    I'm still hung up on option 3, not practical as they are 50km away. That's me driving to the office in the morning.

  • dtc on 02/10/2022 - 14:10
    +1

    People get a bit confused about insurance

    Your friend is liable to the other driver. It is your friend’s responsibility to pay. However friend has insurance, which is the insurer essentially saying ‘if you have to pay someone some money, we will reimburse you for that amount, other than the excess’

    Whether or not you claim on insurance is completely up to the insured. Friend can pay the money owed in full and that ends their liability

    On the other hand the insurance company can’t make you pay more than the liability. You don’t pay $1000 excess if the claim is worth $400. So the risk of notifying the insurer is only the risk to future premiums (which are generally not as great as people think)

    HOWEVER: most policies will say that you must not admit liability or make any payments or they may not cover you if it later turns out the claim is much higher than expected. So by reaching an agreement, you are risking cover.

    Better off notifying the insurer but you can always withdraw the claim later on

    Eg AAMI

    What you must not do
    • do not admit liability or responsibility to anyone or pay for any damage before contacting us;
    • do not negotiate, pay or settle a claim with anyone else before contacting us;
    • do not carry out or authorise any repairs without our consent, except for emergency repairs

    • DASHCAM NOW DUDE on 02/10/2022 - 18:31

      You don’t pay $1000 excess if the claim is worth $400.

      I didn't know this. What do you pay then?

      • Euphemistic on 02/10/2022 - 18:33

        The insurer tells you to go and pay it yourself.

        • DASHCAM NOW DUDE on 02/10/2022 - 18:33

          And your premiums still go up?

          Maybe not? because they won't put the claim through….or it will because they know you are a shit driver now.

          • md333 on 02/10/2022 - 21:32
            +1

            @DASHCAM NOW DUDE: I had a claim recently and my premiums did not change at all. I think it depends a lot on circumstances. One claim after 30 years of none probably doesn't make you a high risk. A scratch in a car park probably doesn't either. I do not understand at all how insurance companys charge though. Whatever it is, they all do it differently.

  • Euphemistic on 02/10/2022 - 15:15

    Get a quote or 2. Decide what to do, insurance or out of pocket.

    If it’s not much get the other party to agree to receive the payment direct and that at that point you have satisfied the ‘contract’. It’s then up to them to repair or not. Just make sure there is some form of record that they’ve receive the full amount of the repair. Email, text or signed document is your choice. I’d probably be happy with a text message chain.

    If you’ve got their bank details in the messages and can prove you’ve sent a payment to the relevant account you are covered. If you go wit cash you definitely want an actual signed document.

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