When you have been involved in a car accident, it can be extremely stressful on both your mind and your body – not to mention your wallet. You are in a state of pain and shock. It is frustrating enough when both you and the other driver have auto insurance, but what happens when the other driver expresses a desire to settle without the involvement of either of your policies. This is not the most common scenario, but it has its own set of pros and cons. Here are the aspects to consider when considering taking the risk of settling without car insurance.
Your Insurance Premiums Will Greatly Increase
When someone is involved in an accident, it generally raises your insurance premiums. These premiums increase on average by more than 40 percent in the three years following the first accident that is claimed during the year. Because of this, sometimes settling without insurance companies seems to make sense. With an annual rate of $815 (the national average), if you were at fault, your costs would likely increase to about $1150 per year. And if you were unfortunate to have made two prior claims in the same year, your insurance would likely grow to approximately $1573 annually.
Difficulty in Recovering the Full Amount
While the financials of the situation may appear to lend themselves in favor of recovering without the use of auto insurance, there are some potential negatives as well. When you settle without your auto insurance companies, it can end up being quite difficult to hold the guilty party accountable for the full amount – especially because there is no real record.
Protect Yourself After the Accident
Whether or not you decide to utilize your auto insurance, what you should do immediately after the accident is the same regardless:
- Be sure to record the other party’s contact information. This includes their name, number, address, and driver’s license number.
- You should also be sure to take a good number of clear photos showing the damage from the accident and should even still obtain the other’s insurance information in case.
- It is also wise to call and file a police report should you need it later on down the road. This can protect you, should you find that you are not being compensated fairly. You can always change your mind and still decide to file with the insurance company.
MPJ Law Firm Can Help Those Who Have Been Injured in a Car Accident
Since determining fault and dealing with insurance companies can be a full-time job, it is in your best interest to consult with a knowledgeable and experienced New Mexico Personal Injury attorney, who can negotiate a fair settlement on your behalf.
At MPJ Law Firm, we have a deep understanding of how to deal with personal injury accidents. We have a long history of dealing with insurance companies and will always act in your best interest. To learn more or to schedule a free consultation, contact us today!
Posted in: Automobile Accidents