How can I offer a lump sum settlement to another driver after an accident and avoid using insurance or filing an insurance claim?
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How can I offer a lump sum settlement to another driver after an accident and avoid using insurance or filing an insurance claim?
I was in a slow speed collision in a parking lot. I was backing out and hit another car. Although we exchanged insurance info, the other driver seemed amenable to accepting a lump sum settlement and not going through
insurance. Would it be preferable to avoid filing an insurance claim since I had moved to MO from MA and had not updated my address with my insurance, my driver’s license was expired for less than 6 months at the time of the accident, and a fair value of the damage is probably only a few hundred dollars more than my deductible? If so, how do I go about offering the other driver a settlement and thus not go through insurance?
Asked on December 19, 2018 under Accident Law, Missouri
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
You simply negotiate terms with the other driver (e.g. how much; when you will pay it) and then, once you and he have agreement, draft up a simple settlement or release form which states that in exchange for however much money, paid when you agreed, the other driver gives up any and all claims against you arising out of the accident (include the date of the accident in the agreement); agrees to not sue you; and will indemnify you against subrogation (if they change their mind and also submit to their own insurer--you don't want to pay them, then get sued by their insurer). Make sure they sign FIRST, before giving them the money. Such an agreement is binding and enforceable.
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