Even though drivers wish to drive safe on the roads, accidents do happen. Nobody can prevent the inevitable, and you need to look for viable means to mitigate your losses. In general, you need to inform the insurance company and file a claim. However, would you like to disturb your no-claim status in case the damage is minor? In this case, it would be wise to go for a private settlement for car accident. A private settlement refers to a resolution for accidents between the owner or drivers which does not involve the insurers. This settlement would arise from one or both the parties involved agreeing that they would not file a claim against one another.
So, with a private settlement, you won’t file a third party insurance claim Singapore. The benefit of using the private settlement option is that, you can maintain a spotless record with the insurer. Evidently, you would continue to enjoy the bonus and increment of benefits.
Situations when a private settlement for accidents would be fine
In case of a private settlement, the involved parties agree to sort out the matter amicably. They do not go to the extent of suing one another. A private settlement for car accident would be the most appropriate solution in case the damage that your car sustains is slightly above the deductible, or below the amount. In these situations, you would decide to handle the charges yourself. However, you need to have a correct estimate of the repair costs.
Here are certain situations where a private settlement would be highly recommended.
- Minimal damage with no injuries
In case there is an accident between two cars and the damages are minor, the chances of injuries on either side would be little. Besides, there might be situations that you know the affected party. Therefore, you might decide not to sue the driver, and decide to settle the deal privately.
However, if the party is not known to you, it is necessary to take caution. The reason is, the person can get back to the insurers even after settling the deal with you. This might be intentional, or due to other reasons. For instance, the pain might arise hours after the accident. Also, the person might have detected a damage in the car later, and the repair costs mount.
- You file for other accidents
Your car might have been involved in other accidents in recent times. So, you might have already filed other claims with your insurer. Applying for frequent claims would increase your premiums. In these situations, it would be wise to opt for a private settlement. This ensures that you can settle the minor damages without draining your pockets. Also, having too many claims would make it challenging to get affordable insurance policies in future.
- You don’t want to disturb your no claim status
Most insurers reward car owners who maintain the no claim status. They can provide you with discounts as a gratification for this status. Alternatively, many insurers increase the car’s coverage. So, if you are not willing to compromise with these benefits, it would be wise to settle the matter privately.
To know more about third party insurance claim Singapore, it would be wise to get across to the experts. A private settlement for car accidents would help you benefit in several ways.