The Villager

We both got out of our cars and looked to see if there was any damage. There was absolutely no damage to my car. The other driver pointed out a small scratch on his bumper, which was difficult to see and that he insisted was caused by my 'negligence'. He stated that if we called the police, I would likely be charged with careless driving, so to avoid calling the police, he suggested we should settle the matter for $200 cash, which would cover the cost of repainting his bumper. I was hesitant to pay this person any money and instead provided him with my name and telephone number and told him to call me when he had a proper estimate. Did I do the right thing?

A. In this case, I would suggest you made the right choice. Minor accidents such as these seem to cause more headaches than those with significant property damage. More serious accidents tend to be straightforward; get help if anyone is injured, call the police and let the insurance companies deal with the damages. With rising insurance rates, though, drivers are reluctant to call their insurance companies for relatively small claims such as this. Other than fatal accidents, there are two situations when police must be notified and a collision report filed; when injuries occur or total damages apparently exceed $1,000.

If the damage appears to be under $1,000 and nobody is claiming an injury, drivers involved in an accident must stop and upon request, provide their proper name, address and insurance information for the vehicle to the other driver. Once that is done, you're 'free to go'.

Be cautious when dealing with motorists who demand instant payment for supposed damages. Are you able to distinguish fresh damage from old? Can you in fact see any damage? While admittedly some damages may be under the car's body such as shock absorbers in the bumper, if you are the least bit in doubt call the police. Officers rarely lay Highway Traffic Act charges in cases where damages are minimal and certainly the likelihood of being charged with careless driving (a very serious offence) in a case such as this is negligible.

Careless driving requires proof beyond a reasonable doubt of driving without due care and attention. Having one's foot slip off the brake pedal hardly meets that burden of proof.

While I would not recommend instant payments, if you are inclined to settle the matter right then and there, ensure the damage is legitimate, be sure to settle for a reasonable amount and be sure to exchange your full name, address and insurance particulars with the other driver.

Before handing over any amount of money, the most important part of the transaction is to have the other party sign a document (hand written is fine) acknowledging there are no injuries to any person as the result of the accident and that any money paid is full compensation for the damages incurred.

And on that document, list the damages you are paying for.

That way you are less likely to receive a call later on asking for more money, after all, there are many accident fraud artists operating on our highways.

Make sure you keep the original signed document and only provide a copy of the original to the other driver. Be aware though, even this fairly simple process may not entirely relieve the 'at fault' driver of total liability as civil actions can be filed up to two years after an incident.

Reporting an accident to the police does not obligate a driver to notify his or her insurance company. While it is practical to do so in accident cases involving injuries or serious damage, that decision remains with the insured.

Remember, if in doubt about an accident, damages or demands for cash payments, notify the police who will either attend the scene or direct you to a collision reporting centre where the matter can be properly investigated and reported.