Some drivers would offer you cash on the spot when they crash into your car. This form of compensation may be instantaneous, but it's likely to be bad for you in the long run. Here are some of the reasons you shouldn't accept cash on the spot after an accident:
The Possibility of Hidden Car Damage
When you accept cash immediately after a car accident, you will be most concerned about the damages you can see. For example, you can accept a few hundreds of dollars after seeing that your car needs a new bumper, and it will be like the accident never occurred. Unfortunately, there are situations in which the damage you can see doesn't tell the whole story. What if you take the car for repair service and the mechanic unearths hidden damage, such as suspension damage? In such a case, it may be next to impossible to track down the other drive and make them pay for the hidden damage. You may have to hire legal services to do so.
The Possibility of Delayed Injuries
Just like your car can harbor hidden damages, your body can also harbor hidden injuries. There are cases in which one gets involved in a car accident but only starts to experience pain and medical complications hours or even days after the accident. If that happens to you after accepting cash on the spot, it will be up to you to come up with the money for your medical bills.
The Possibility of the Other Driver Filing a Claim
Another danger of accepting cash on the spot is the danger of the driver changing their mind later on. For example, a negligent driver may accept liability for rear-ending your sports car and offer you cash on the spot. A few days after that, the driver files an auto insurance claim lying that you actually caused the crash by backing into their car. If that happens, you will be out of luck because you didn't report the accident to your auto insurance company or file a police report. Don't forget that both things are usually necessary for your auto insurance coverage to protect you from car accident liabilities.
The Possibility of Undervaluing the Crash
Lastly, there is always the danger that you may undervalue your damages when accepting cash on the spot. For example, you may be aware of all your injuries and car damages, but don't know how much it will cost to fix each of them. By the time you realize your mistake, it will be too late because the other driver will be long gone.