Is this follow-up after a car crash a potential scam?

Question

A few nights ago I had an accident with another car.

I hit their bumper bar, put about a tennis ball size dent. No damage was done to my car. I didn't tell them that I had insurance. Just putting this here now as an edit, if I go through insurance, I'd end up paying around $2000 in total for all exceptions, underage driver fee etc.

Today they followed me up with a quote from a repairer saying it would cost $700 for the repairs. Before they contacted me, I had asked around myself and this price did seem reasonable. (I had taken photos of the accident, and shown these to a few repairers.) Straight after the call, they sent me a photo of the quote on a business card + their bank details.

However, on the phone they asked me to transfer the money straight to their bank account. They sent their bank details over text and said its urgent and the money needs to be sent ASAP so they can get it repaired. They drive the car for taxi purposes, and the boss (also presumed car owner) was the one who contacted me.

This is where I am a bit uncertain, there is no formal written agreement. I am worried they are trying to pull a trick on me and end up scamming me. I know I have to pay the repair, but it just doesn't seem right.

Am I being tricked/scammed? or even better, how do I try and get a formal written agreement going? I only have their phone number.

Answer 1

You have to realize that you're trying to have your cake and eat it too. You want to do things "unofficially" by not reporting the accident (to insurance companies and/or police), but you want to do it "officially" in that you want to have legal recourse if they try to hit you up for more money. The only way to have it both ways is to trust the other person.

From a financial perspective, ultimately you need to decide if the monetary cost of your raised insurance premiums, etc., outweighs the cost of whatever money the other party in the accident will try to squeeze out of you (factoring in the likelihood that they will do so). You also would need to factor in the likelihood that, rather than trying to scam you, they'll pursue legal action against you.

In short, from a purely monetary perspective, if the legitimate cost of repairs is $700 and the cost to you of doing it by the book via insurance is $2000, you should be willing to be scammed for up to $1300, because you'll still come out ahead. Of course, there are psychological considerations, like whether someone unscrupulous enough to scam you will stop at $1300. But those numbers are the baseline for whatever outcome calculations you want to do.

On the more qualitative side of things, it is possible they're trying to scam you, but also possible they're just trying to hustle you into doing everything quickly without thinking about it. They may not be trying to gouge you monetarily, they just want to pressure you so they get their money. I agree with other answerers here that the ideal way would be for them to send you an actual bill after repairs are complete. However, you could ask them to send you a written copy of the repair shop estimate, along with a written letter in which they state that they will consider payment of that amount to resolve the issue and won't pursue you further. The legal strength of that is dubious, but at least you have some documentation that you didn't just try to stiff them. If they won't give you some form of written documentation, I would read that as a red flag, bite the bullet, and contact your insurance company.

Answer 2

Do not give them any money until you have a signed contract that releases your liability completely. It's imperative that this contract be drafted correctly. The contract needs proper consideration (money in exchange for release of liability), among other things. In other words, talk to a lawyer if you want to go this route. If you just cut them a check, there's nothing stopping them from taking your money and making an insurance claim anyway, or taking your money and then suing for "whiplash" or some other fake injury.

The best way is just to go through insurance. It might cost a bit more, but you're covered in case they sue.

Answer 3

You wouldn't pay what the quote says, you would pay what the bill says. If the car is used as a taxi then either it's done illegally and not your problem, or they have proper insurance. One reason to go through your insurance is that they know how to handle all these things for you.

If you have only their phone number: You owe them money, so they will contact you.

Answer 4

I would write them a check or give them cash money. There are payment receipt forms available online, you can print one of have them fill it out and sign it.

Just google "private party receipt".

Money transfer (via bank account or Paypal) is also an option, but in my opinion it's more convenient to meet up and handle it in person. If you want, you can have them meet you at a notary public's office (your local bank branch should have one) and have the receipt notarized.

I don't think it's a scam, but make sure you are paying the right person.