At-Fault Driver Offers Me Cash at the Scene — What Do I Do?

When someone crashes into your car and it's obviously their fault, you expect them to pay for the damage. Very often, the at-fault driver doesn't want the authorities involved — so they offer you cash to cover the expenses instead. But should you take it?

Is it illegal to give cash after an accident?

Technically, it's not illegal to give and accept cash at the scene. The person who hit you is responsible for covering the costs, and cash is an acceptable form of compensation if both parties agree. Still, it may not be in your best interest. At the scene you can only assess the visible damage — there may be more, including physical injuries you don't feel yet. If you take the money, you have to pay for the rest yourself.

Why would the at-fault driver offer cash?

There are several reasons, including:

• They want to avoid dealing with their insurance company
• They fear a higher insurance premium
• They may lack insurance
• They're in a hurry
• They may be driving without a license or have other legal issues
• They think they'll get a better deal paying you directly

Be wary when an at-fault driver insists on giving you cash. It rarely works out in your favor, and you may end up paying more than they gave you. If they're insistent, contact the authorities.

Verdict: should you take the money?

It's almost always in your best interest not to take money from the person who hit you. The offer is their attempt to get out of it as lightly as possible. If you discover more damage or injuries later, there's nothing you can do about it. Gather the evidence you need, get checked by a doctor, and talk to your attorney.