Is it illegal to accept payment for damages done to my car outside of the other persons insurance?

I was rear ended and only cover collision insurance. The other party asked if instead of me making a claim under their insurance, if i could get my car appraised and tell them how much my car will cost to fix. I am reluctant to do this for fear of it being illegal.

Asked on June 10, 2009 under Insurance Law, New Jersey


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

It's perfectly legal; after all, you're not under any obligation to file an insurance claim at all. For example, you could simply opt to repair the vehicle yourself, out of pocket. Similarly, the other party to the accident could offer to pay you directly for the damage rather than putting it through insurance (for that matter, if he owned an auto shop, he could simply fix your car as the way to put things straight). It's always voluntary whether to file an insurance claim.

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