Car accidents can be very stressful events if you are involved in one. They can leave you dealing with injuries, damage to your vehicle, and having to deal with an insurance claim. In some cases, the at-fault driver might offer you a cash payment on the spot to cover the damages, asking you to forgo reporting the accident to the insurance companies. While this might seem like an easy and quick solution, accepting an under-the-table payment can have significant legal and financial repercussions. Here we uncover the potential pitfalls of such an arrangement and why consulting with a lawyer is often the best course of action.

If you are involved in a car accident in New York, we urge you to reach out to Brandon J. Broderick, Attorney at Law to speak with one of our experienced NY car accident lawyers before you ever consider a cash payment from the other driver.

Drawbacks of Accepting Cash Payments After a Car Accident

The immediate temptation to accept cash might stem from the desire to avoid the hassle of dealing with insurance companies, a lengthy claims process, and potential premium increases. The other driver might convince you that this is the simplest and most mutually beneficial solution for both of you. However, there are several reasons why this might not be in your best interest.

Legal Implications

1. Lack of Official Record: Accepting cash under the table means there is no official record of the accident. Without an official police report or insurance claim, you might find it difficult to pursue further legal action if needed. For instance, if injuries manifest later or if the damage is more severe than initially assessed, you won't have any documentation to support your claims.
2. Future Liability: Without a formal agreement, you might still be held liable for damages or injuries that were not apparent at the time of the accident. The other driver could potentially change their mind and file a claim against you later, leaving you without any legal protection.
3. Insurance Policy Violations: Most insurance policies require you to report any accidents to your insurer, regardless of the extent of damage. Failing to report an accident could result in the denial of future claims or even the cancellation of your policy.

Financial Risks

1. Underestimation of Damages: The true extent of vehicle damage or personal injuries might not be immediately apparent. What seems like a minor scratch or a small bruise could later turn into a more serious issue requiring costly repairs or medical treatment. Accepting a small cash payment might not cover these unforeseen expenses.
2. Medical Expenses: Injuries from car accidents can sometimes take days or weeks to fully manifest. By not going through the proper channels, you might find yourself without coverage for medical bills related to the accident.

What a Lawyer Would Recommend

Reporting the Accident

A lawyer would typically advise you to report the accident to both the police and your insurance company, regardless of how severe it was. This ensures that there is an official record and that you are protected against any future claims or disputes. An official police report can be important evidence if legal proceedings become necessary.

Understanding Your Rights and Options

Consulting with a personal injury lawyer can help you understand your rights and the best course of action following an accident. A lawyer can provide guidance on whether the settlement offered by the other driver is fair, and can help you navigate the claims process to ensure you receive full compensation for your damages and injuries.

Ensuring Fair Compensation

A lawyer will help you assess the true value of your claim, taking into account all possible damages, including medical expenses, lost wages, pain and suffering, and future costs related to the accident. They can negotiate with insurance companies on your behalf to ensure you receive a fair settlement.

Legal Representation

If the accident results in a lawsuit, retaining a lawyer can significantly improve your chances of a favorable outcome. Legal representation is especially important if the other driver is disputing liability or if there are other legal issues involved.

Why Going Through Insurance is Often Best

Going through your insurance company might seem like a hassle, but it provides several key benefits:

• Protection and Peace of Mind: Insurance companies handle the negotiations and settlements, reducing your stress and ensuring you are fairly compensated.
• Legal Compliance: Reporting the accident ensures you comply with your insurance policy terms and local laws.
• Access to Resources: Insurance companies have resources to assess damage, estimate repair costs, and evaluate medical expenses accurately.

Been in an Accident? Call Brandon J. Broderick For Help

As with any accident, consulting an experienced lawyer will greatly benefit your chances of receiving fair compensation. Brandon J. Broderick, Attorney at Law has represented clients in New York for many years. Our team of car accident lawyers have both the expertise and resources to ensure you reach a successful resolution in your case.

If you've been in an accident and need legal advice, contact us today for a free consultation to discuss your case.