Never, Ever Pay for a Car Accident Out of Pocket

car insuranceLast week I was sitting with a girlfriend over coffee and during a pause in conversation she mentioned, “remember that time I almost paid someone $750 for hitting their car? Thank God you stopped me, haha. That would’ve been a horrible mistake!” And tonight I’ve been thinking about that moment and the fact of the matter is so many people pay for damage caused by car accidents when they shouldn’t.

I worked as an automobile adjuster for a few years, (in two different provinces, too!) but it was long enough for me to learn a few things about the industry and how it works. Keep in mind, this post isn’t directed for people with provincial automobile insurance, (I’m looking at you, BC).

  1. A regular Canadian citizen doesn’t know how to determine fault. There are so many misconceptions about who is at fault in accidents, that people often have false information. Best example, parking lots are not automatically 50/50.
  2. When vehicles go into the body shop, they often find additional damages, which yes, most of the time are legitimate. Unfortunately, a lot of people aren’t ready to pay for the additional damages, which brings me to my next point…
  3. This scenario does happen more often than not… Person A hits Person B’s vehicle, pays for the repairs and everything is seemingly fine and no one has even had to speak to each other since the accident. However, when Person B goes to renew their insurance, they mention, “Yes my vehicle was involved in a collision back in X month.” Boom. An insurance claim gets opened, more often than not there are lingering damages found from said accident, and now, finally Person B has fully repaired their vehicle. Person A has no options to get their money back, and is now found at fault for an accident, despite paying for damages out of pocket.

Ultimately, your auto insurance premiums can go up or down for a plethora of reasons that are beyond your control from how the market is, to age, to crime rates in your area. It’s never solely based on your claims history.

I hope this blog saves at least one person a headache in the future 🙂


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