What to Do if the At-Fault Driver Offers Cash After a Car Crash?

After a car accident, the at-fault driver may try to avoid legal consequences by offering you cash on the spot. While it might seem like an easy way to resolve the situation, accepting cash can put you at significant risk. In this blog, we’ll discuss why some drivers make cash offers, the potential dangers of accepting them, and what you should do instead to protect your rights under New Jersey law.

Why an At-Fault Driver Might Offer Cash

If a driver causes an accident, they may try to resolve the matter privately by offering cash instead of involving the police or insurance companies. Some common reasons for this include:

• Avoiding higher insurance premiums – New Jersey follows a no-fault insurance system, but an at-fault driver’s insurance rates could still increase if a claim is filed against them.
  
• Lack of insurance or valid license – The driver may not have insurance or their license could be suspended or expired.
  
• Outstanding warrants or legal issues – If the driver has prior infractions, a criminal record, or outstanding warrants, they may try to avoid police involvement.
  
• Driving under the influence – The driver may be impaired and fear legal consequences if authorities are involved.
  
• Avoiding liability for injuries – The driver may hope to resolve the matter cheaply before you realize the full extent of your injuries.

The Risks of Accepting Cash at the Scene

While a cash offer may seem convenient, there are serious risks to accepting money at the accident scene:

Unseen Vehicle Damage

Some vehicle damage isn’t immediately visible. What seems like a minor dent or scratch could result in costly repairs later. Once you accept cash, you likely won’t have any recourse to seek additional compensation.

Undiagnosed Injuries

Injuries from car accidents, such as whiplash, concussions, or internal injuries, may not become apparent for hours or even days. Accepting cash means you may waive your ability to claim medical expenses later.

No Legal Record of the Incident

Without a police report, there’s no official documentation of the accident. If the at-fault driver denies responsibility later, it will be difficult to prove your case to an insurance company or court.

Loss of Potential Compensation

New Jersey law allows car accident victims to seek compensation beyond Personal Injury Protection (PIP) benefits if they suffer serious injuries. By accepting cash, you may forfeit your right to:

• Medical expenses beyond PIP coverage
• Lost wages due to inability to work
• Pain and suffering damages (if you meet the threshold for filing a third-party claim)

What You Should Do Instead

If an at-fault driver offers you cash after an accident, follow these steps instead:

Call the Police

Under New Jersey Statute N.J.S.A. 39:4-130, you are legally required to report any accident that results in injury, death, or property damage exceeding $500. A police report provides an official record of the accident, which is essential for insurance claims and potential legal action.

Exchange Information

Gather the following information from the at-fault driver:

• Full name and contact details
• Driver’s license number
• License plate number
• Insurance company and policy number

Document the Scene

Take photos and videos of:

• The vehicles involved (including license plates)
• Any visible damages
• Traffic signs, signals, or relevant road conditions
• Any injuries you or your passengers sustained

Seek Medical Attention

Even if you feel fine, visit a doctor as soon as possible. Some injuries take time to develop, and having medical records will help support any future claim.

Notify Your Insurance Company

New Jersey is a no-fault state, meaning your Personal Injury Protection (PIP) coverage will pay for your initial medical expenses. However, if your injuries are severe, you may still have grounds for a third-party claim against the at-fault driver’s insurance.

Consult a New Jersey Personal Injury Lawyer

An attorney can help determine if you have a claim beyond PIP benefits. New Jersey’s statute of limitations (N.J.S.A. 2A:14-2) gives you two years to file a personal injury lawsuit, but acting quickly is crucial.

When Cash Offers May Be Considered

While it’s generally unwise to accept cash at the accident scene, there are rare instances where a cash settlement may be acceptable:

• If the damage is truly minor – If the accident involves only a small scratch or dent and there are no injuries, some people may choose to accept cash rather than deal with an insurance claim.
  
• If both parties agree in writing – If you decide to accept a cash settlement, make sure you write a formal agreement stating the amount received and that both parties agree to no further claims.

However, be extremely cautious before accepting any offer without consulting an attorney.

Not Sure What to Do After a Crash? Contact Us Today!

If you were involved in an accident and the at-fault driver offered you cash, don’t decide without understanding your rights. At Rosengard Law Group, we specialize in helping New Jersey accident victims secure the compensation they deserve.

Our team is ready to assist you with insurance claims, personal injury lawsuits, and legal guidance tailored to your situation.

Call us today for a free consultation at (856) 284-6446 or visit our website to schedule an appointment.