What if an At-Fault Driver Proposes Cash After the Car Accident?

Accepting cash from the other driver who’s liable can seem like a quick fix and a complicated situation. Remember this: only the at-fault party will benefit from this, and you, on the other side, might have to pay hundreds and thousands in losses to cover your damages. Even engaging in a conversation and making vague statements to the defendant can jeopardize your chance of compensation.

Being in a tragic car accident not only affects your physical health but also clouds your decisions while pursuing a lawsuit. Hire a Des Moines car accident lawyer who can guide you every step of the way and increase your chances of winning.

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Is it against the law to offer or accept money after an accident?

It’s perfectly legal for the at-fault individual to offer money to the victim. One can also accept cash for the imposed losses from the other driver who caused the accident. The at-fault party can be held accountable before the law for causing injuries and damaging your vehicle, seeking reimbursement from their insurance companies.

Negligence and comparative negligence get tricky to prove:

If you converse or argue with the at-fault party, you might say something ambiguous that the other party’s attorney can use to refute your claim. Moreover, if you get paid following the collision, it implies that you have already received advance compensation to cover your case. Consequently, it can become tricky to file a claim and establish negligence.

What are the risks of accepting cash after the accident?

Multiple factors need thoughtful judgment and consideration to evaluate the right dollar value for your compensation. These include:

Maximum medical treatment billable
Transportation costs
Physical therapy
Follow-up medical appointments
Medication costs
Crutches or other mobility devices
Potential financial loss
Property damage
Emotional loss (PTSD or emotional trauma)
And more

Without evaluating all the specifics and details of the case, you won’t be able to assess the severity of your damages. As a result, you will easily settle for a minimum payout, which could cost multiple times more in the long run.

Am I legally responsible for reporting a car crash?

You don’t always have to report a car accident, but you are indeed legally required to report the incident if it caused:

Around $500 in estimated property damage.
You or the at-fault driver sustained minor or serious injuries.
Someone involved in the accident is facing a life-and-death scenario.

Why does the at-fault party offer cash in the first place?

Accepting cash may affect you financially, but let’s understand why the at-fault party offers you money as compensation, as they may not have your best interest in mind.

Fear of legal consequences: The concerned at-fault party offers you cash as the first offer because they fear the legal consequences of a lawsuit and law enforcement at the scene. They may not have the required license, or they might have been driving while intoxicated or under the influence of drugs. Anything could be the case. They know the severity of the situation and the future dilemma if the police get involved and start investigating.

Avoiding insurance claims: The other driver tries to pay you out for their mistake so that the insurance company doesn’t get involved. It also gets the at-fault party off the hook; once you receive the compensation, you free them from taking any responsibility. If you later discover any crucial damages and want to sue or get compensated for that, you can no longer file the claim or include it in your lawsuit, as the at-fault driver will likely remove all evidence that links back to your case.

Lack of coverage: Sometimes the other driver may not have any insurance coverage or didn’t have insurance in the first place. The initial cash offer probably won’t include all your incurred damages and losses. Plus, allowing you to settle with cash helps them avoid consequences like: