Accidents happen no matter how careful you are. In the unfortunate event that you have been in a car accident, you may opt to settle privately or make a claim with your insurance company. We have previously mentioned how you can make a claim for car accidents. In this article, we will be discussing the option for private settlement in the event of an accident.
Private settlement is to resolve a car accident without involving their respective motor vehicle insurance. In a private settlement, the party at fault may compensate the other party and they will typically agree not to pursue further legal action. Even though it is a private settlement, both parties must inform their insurers about the settlement.
Rather than getting the insurers involved, a private settlement preserves your No-Claims Discount (NCD). The NCD is an entitlement provided by the current insurer to you. In case you do not make any claims with the current insurer for a year or more, you will be eligible for a reduced renewal premium for the following year.
You may opt to settle it privately in the event of a minor accident where your vehicle has little or no damage and there is no bodily harm to anyone involved.
In a car accident, the parties involved CANNOT agree to a private settlement if:
First of all, send your car to your insurer’s authorised workshops and get an estimated cost of repairing your car. This allows the at-fault party to know how much he should compensate and also ensures the value of compensation to be fair for all the parties. Next, both drivers must complete and sign a private settlement form or letter that includes the following details:
If you decide to settle your accident privately, make sure you report to your insurer within 24 hours even if there is no visible damage. Failure to do so may result in: