What are my options?

[ashton1234]

What is the name of your state? CA Los Angeles

Recently I was involved in a very minor accident. I bumped into a car that's in front of me at 3 mph. The bumper was very lightly scratched. Rather than going through insurance, I offered the person to pay for the damage. We verbally agree on $280 and I told him I would send him a check. So, a week after sending him the check I get a notice from his insurance asking for $950 in damages. The person never cashed the check and decided to go through insurance, so he can fix other scratches on his bumper (Not related to this accident)! I don't want to go through my insurance because then my bill will increase 33% over God knows how many years. What can I do? Am I stuck with the $950 bill? Please help.

 

[jcook7066]

most likely, you are. without your insurance comapny, you will not have the ability to fight this. your alternative would be to hire an attorney or defend yourself in small claims (to which the other insurance will still send their attorney). you may be correct about the damages but prooving you didn't cause all of them could be an uphill battle - one you are not likely to win.

 

[ashton1234]

I guess a verbal agreement would be thrown out in this case? As matter of fact, the person called me again later on and we agreed on $600 and I sent him another check which again he did not cash. Can I settle with his insurance company instead?

 

[jcook7066]

yes. a verbal contract is virtually worthless. you can make payment arrangements with his insurance - sure. You actualy may be in better position to negotiate with him directly at $600. If his damages are $900, he is going to get paid much less because he also owes a deductible.

I would call him and tell him that you will not pay anymore than $600 and get him to sign a release, which you could write yourself (those wll stand up if they are notorized). If he doesn't accept, tell him you will only work with his insurance company because they can only collect if they have paid him. It doesnt sound like this is worth enough to justify his rate increase.

From what I know about insurance rates in California, my guess is that he doesn't intend to collect from his insurance, but rather use them to get more out of you. Play hard ball.

 

[ashton1234]

I did offer him $600 and he accepted. I sent him the check for the amount and a release letter. The problem is he never sign the release form or cash the check. The insurance agency is now sending the bill collector to hassel me. What a mess...

 

[jcook7066]

to heck with him. stop payment on the checks and try to negotiate with the bill collector. if this is an outside firm, they might be able to accept $600, but offer it to them in small increments (12 payments of $50). If they suspect you have that kind of cash, they will not accept anything less than the full amount.