Before you agree to settle a car accident privately, get the damage assessed, check your insurance obligations and understand what the proposed payment covers. An offer at the roadside may come before you know the repair cost or how long you will need another way to get around.

You can take the other driver’s contact details and discuss the offer later, once you have gathered the information you need. If they ask you to sign an agreement, get advice about its wording before you commit.

This guide concerns vehicle damage and related costs. It is general information only, not legal advice. If anyone is injured, seek appropriate medical help and separate advice about injury claims.

What Does Settling Privately Mean?

Settling privately generally means agreeing with the other driver about payment for accident damage instead of asking an insurer to manage that payment. Either driver might still have insurance. Someone’s preference to pay directly does not tell you whether they are insured or whether their offer is enough.

Ask what they are proposing: a payment to you, payment to a repairer, or instalments. Keep a written record of the discussion. If you have no property-damage insurance yourself, Acorn’s guide to being not at fault without insurance explains the separate question of pursuing repair costs.

Record the Accident Before Discussing Payment

Exchange details and preserve evidence even if the other driver seems cooperative. Record the driver’s name, address and contact information, the vehicle registration and owner details where different. Acorn’s checklist of information to exchange after an accident can help.

Where safe, take photographs of the damage and scene, save dashcam footage, and collect witness contacts. Write down what happened while you remember it. Stick to the facts rather than trying to settle an argument about fault at the roadside.

A private payment arrangement does not replace your crash duties. Stop, assist and follow the police-reporting requirements that apply where the accident happened.

Check With Your Insurer Before Agreeing

Tell your insurer about the accident and explain that the other driver has offered to pay privately. Victoria Legal Aid advises notifying your insurer even if you decide not to make a claim. Your own policy sets out the conditions that apply to you.

Ask whether the proposed arrangement could affect a later claim, and whether the insurer needs to inspect your car before repairs. Keep their response with your accident records. Acorn also explains when to notify your insurer.

Do not assume private payment will prevent a premium change or leave every insurance option open. If the other driver’s insurer is already handling a claim, establish who you should deal with before continuing negotiations.

Get the Damage Assessed and Check the Costs

Ask a repairer for a written assessment and quote before deciding whether the offer covers repairs. Point out anything that has changed since the crash, and ask what the quote includes, what still needs checking and whether the car is safe to drive.

A photograph of a dent cannot tell you the final bill. If a repairer needs to inspect the car further, wait for that information rather than treating an early estimate as a confirmed price.

The Financial Rights Legal Centre explains that reasonable accident losses can include repair costs, necessary towing and hire-car costs, depending on the circumstances. It recommends obtaining repair quotes and acting reasonably to minimise losses. Recovery is not automatic.

Alongside the quote, keep a record of:

• Towing or storage invoices connected with the accident.
• The repairer’s expected booking date and repair period.
• Your temporary transport needs and any costs already incurred.
• Questions still unanswered about the damage or proposed payment.

Check these against the offer. A payment described as covering repairs may leave you uncertain about transport or other costs.

Understand What You Would Be Agreeing To

Legal Aid NSW’s settlement guidance explains that written terms can address the amount, payment method, instalment dates and what happens if payment is missed. It also explains that a full and final settlement can prevent later claims for other losses, such as hire-car costs.

Read the whole proposed agreement, including any release of claims. Get legal advice if you are unsure what you would give up, particularly where costs are still uncertain. A generic online form cannot assess your circumstances.

Before signing, check that the document matches the discussion and identifies who will pay, how much and when. Keep a copy of any agreement and payment records. If the other driver misses a payment or changes their position, seek advice before accepting revised terms.

Private Settlement FAQs

What if I have already accepted some money?

Keep the transfer record, messages and any document you signed. Get legal advice about what was agreed before asking for more money or signing anything further. Whether you can pursue another amount depends on the circumstances and the agreement.

What if the other driver wants to use their friend’s repairer?

Ask for the repairer’s details, a written quote and an explanation of the proposed work. Check the arrangement with your insurer if you have cover. Take time to understand who is authorising and paying for repairs before handing over your car.

Can I get a replacement vehicle while considering the offer?

You can ask Acorn to assess your circumstances, but discussing a private settlement does not guarantee approval. Explain any offer, payment or agreement already made so the team can consider it alongside your accident details.

Check Your Replacement Vehicle Options

Acorn assists eligible not-at-fault drivers in Melbourne and Sydney where the other driver is identified and insured. You can review how Acorn’s process works before applying. Assessment, approval and terms apply.

If you need transport while your car is repaired or assessed, check your eligibility for an accident replacement vehicle. Tell Acorn about the proposed settlement before assuming that hire costs will be covered. Acorn assesses vehicle applications; it does not decide legal liability or advise you on settlement wording.