What to Do If the Other Driver Wants to Settle Without Insurance?
After a car accident, it’s not uncommon for another driver to approach you and offer a quick settlement—sometimes even before their insurance company is involved. While it might seem convenient, this is almost always a bad idea. Here’s why you should never accept a private settlement and always go through insurance.
1. People Without Insurance May Not Pay
If you accept money directly from the other driver, there’s no guarantee they’ll actually pay the full amount—or pay at all. They might give you a small amount upfront and disappear, leaving you responsible for your medical bills, car repairs, and other expenses. Insurance exists to protect both parties, and bypassing it puts you at serious financial risk.
2. Injuries May Appear Later
Some injuries, especially neck, back, or soft tissue injuries, don’t show up immediately. You might feel fine in the first 24–48 hours, but symptoms like pain, stiffness, or limited mobility can develop later. If you accept a settlement before your injuries fully manifest, you could be leaving significant compensation on the table.
3. Insurance Is the Proper Way to Handle Claims
The other driver’s insurance company is legally obligated to cover damages caused by their insured. When you go through insurance:
You are protected against the driver failing to pay.
Insurance adjusters have the responsibility to investigate, assess damages, and provide compensation for both property damage and injuries.
Your claim is documented officially, reducing the risk of future disputes.
4. Protect Your Case
Going outside of insurance can hurt your legal claim if you decide to hire an attorney later. Lawyers rely on insurance documentation, police reports, medical records, and official statements to build a strong case. If you already accepted money directly from the driver, it can complicate negotiations or reduce the value of your claim.
5. Get Their Insurance Information
Even if the driver insists they don’t want to involve insurance, always get their insurance information. Texas law requires drivers to carry liability insurance for exactly these situations. Having their insurance details ensures that if injuries or property damage appear later, you can file a legitimate claim.
