A car accident is stressful, but dealing with the aftermath can be even worse. Sometimes, at-fault drivers will suggest a private payment of damages to avoid insurance rate hikes or hide their lack of coverage.

While handling the situation outside an official insurance claim can seem quick and easy, it comes with potential risks that may affect your legal rights and ability to afford treatment for your injuries.

Read on to discover the risks of private settlements after a crash and why teaming up with a New Orleans car crash lawyer from Dudley DeBosier can safeguard your rights to compensation and well-being.

Potential Risks of Settling Privately

Handling a car accident dispute privately might seem tempting, but it can expose you to several risks. Here’s why you should avoid a private arrangement:

  • Unreliable Contact Information: The at-fault driver might provide fake or incorrect contact information, making it impossible for you to follow up if issues arise later.
  • Lack of Official Documentation: Without a police report, there’s no official record of the accident. This can be problematic if the other driver later denies fault or if you need to prove the details during a dispute.
  • Insufficient Funds for Compensation: The at-fault driver may not have enough money to cover all your expenses, especially if injuries or vehicle damage are more severe than initially thought. In 2022, the average cost of disabling injuries in a car crash was $162,000, a sum that most people can’t afford to pay out-of-pocket. Even in a crash with no injuries, the average cost to repair a vehicle after a crash was $6,100, which is more than most people can afford without the help of insurance.
  • Disputes Over Payment Amount: Without the structure of an insurance claim, disagreements over payments for damages or injuries can quickly escalate. These disputes can lead to drawn-out negotiations or even legal battles.
  • Loss of Insurance Coverage: If your insurer finds out about an unreported crash, you could lose coverage or legal protections. You may forfeit uninsured motorist benefits or face penalties for not following policy reporting requirements.

Situations Where Settling Outside an Insurance Claim Might Be Acceptable

Settling privately is rarely advisable, but there are exceptions. For instance, it might be an option if the accident involves no injuries and very minimal vehicle damage.

A private payment could potentially be considered if the damage is minor and doesn’t impact the vehicle’s functionality or safety—for example, cosmetic scratches only.

Even in these cases, always call the police to file a report and keep a copy. This provides an official record, which is invaluable if disputes arise. It’s also the law in Louisiana: accidents involving injury, death, or property damage over $500 must be reported.

For this reason, it’s also advisable to file a police report even if you aren’t sure whether you are going to get insurance involved: It may not always be apparent how much damage there is at first glance. For example, it may look like only the bumper cover is damaged, and it will cost less than the $500 reporting threshold to fix. However, an inspection by a repair facility may later reveal damage to the vehicle’s frame.

Avoid promising to keep insurance out of it in case hidden damages or delayed injuries emerge later, complicating matters.

Reasons Why You Might Need to File a Claim After the Fact

If you collected contact information from the other driver and filed a police report, you can likely still file an insurance claim for your auto accident, even if you did not do so immediately. However, always refer to your insurance policy document to determine if a specific deadline for reporting to your insurer exists. 

Here are some common reasons why you might need to finally get insurance involved days or weeks after your crash:

Hidden Damages and Delayed Injuries

Car accidents can be costlier than they appear, especially with modern vehicle designs. An attorney can help you file an insurance claim that considers these factors, ensuring you get full compensation for unforeseen damages such as:

Hidden Vehicle Damage

Modern cars are complex, and damage isn’t always visible. A minor fender bender could hide significant issues with the struts, undercarriage, or other critical parts. Involving insurance triggers an inspection by adjusters who can identify hidden damages. This process ensures you get the compensation needed for proper repairs.

Delayed Injury Symptoms

Some injuries, like soft tissue damage to the shoulder, neck, or back, may not show symptoms until days after the accident. Without a police report written at the scene, proving these injuries are accident-related is challenging.

Reporting the accident and seeking immediate medical care documents your injuries from the start. This protects your rights and helps you get the necessary medical care, ensuring accurate compensation.

Worsening Injuries

The severity of injuries like a traumatic brain injury (TBI) can be unclear at first. Reporting the accident and consulting an attorney ensures a thorough evaluation of your injuries, addressing your long-term medical needs.

A lawyer can base your settlement on your Maximum Medical Improvement (MMI), the point at which no further recovery from the injury is expected, to secure compensation for potential future damages.

Avoid Costly Insurance Mistakes: Contact Dudley DeBosier Injury Lawyers

After a car accident, protecting your rights and securing proper compensation is crucial. An experienced New Orleans car crash lawyer from Dudley DeBosier can guide you through your options and the claims process.

We can investigate the accident, gather evidence, and negotiate with insurance companies or the at-fault party to secure the compensation you deserve. Don’t risk your financial well-being by settling privately without legal guidance. Contact us today for a free consultation and learn how we can help you get a fair settlement.

Disclaimer: This content has been reviewed by Chad Lederman, Director of Legal Operations at our New Orleans office.