Is it Legal to Accept a Cash Payment From an At-Fault Driver?

In San Diego, you might have to face a car accident due to several factors, such as negligence of the other driver, bad weather or poor road conditions, and more. In this situation, you usually need to file an insurance claim to cover the damages. However, it has also been seen that the at-fault driver may offer you a cash payment after the accident with the intent to settle the matter immediately without filing any claim. You might think this to be a convenient solution, but when you accept the payment, it leads to significant risks and drawbacks. 

So, let's know why you have been careful before accepting cash and what should be done instead.

·         Why Do Drivers Offer Cash Payments?

In several situations, it has been seen that the at-fault driver offers cash, and there are several reasons behind it, such as they might be trying to avoid the insurance premium hikes, as soon as the insurance claim is filed, it would increase their rates. Moreover, if the driver doesn't have insurance, they might use cash to sidestep the legal formalities or skip the financial penalties. Most importantly, if the driver wants to avoid points on their license or records, they would offer cash, as any mark on the record can lead to suspension or further legal consequences.

·         Risks of Accepting a Cash Payment

When you face a car accident, you can't determine the extent of physical, mental, or property damages. Only with the intervention of an expert, such as the police, medical officials, and accident reconstruction expert, can the assessment be made. So, if you accept the cash payment, you might be underestimating the actual cost of the damages. It is also seen that the vehicle repairs and medical expenses exceed the initial fee that the at-fault driver has made, as specific injuries take time to manifest.

Moreover, when you accept the cash, you waive your right to pursue further claims. You won't even have the documentation to file an official settlement and might lose the opportunity to recover additional costs permanently. If the at-fault driver promises you to cover the extra costs, they might not keep it, and you won't have any right to charge them or get the money. When you are not involving insurance or legal authorities, compensation is not guaranteed. You have to consult with an experienced car accident lawyer who can support you if the situation turns negative, and they can protect your rights.

·         What to Do Instead?

On the contrary, you should do the following:

1.      You can gather information about the drive and take hold of the insurance details.

2.      Report the accident to the police and notify the insurance company.

3.      Take pictures of the accident scene, vehicle damage, and any injuries.

•        When Might Cash Be Acceptable?

There are a few rare situations in which you can accept cash payments from the at-fault driver. Suppose the accident is very minor, including a few scratches or dents, and you can easily predict the cost; then you can accept the money. However, you need to ensure that there are no injuries or nobody got hurt in the accident. 

Summing it Up

If you accept the payment, you must write a detailed agreement and get it signed by both parties. Also, it is essential to keep photographic evidence of the damages and the cash amount received.