Nearly half of Ontarians would consider a cash settlement after a collision, survey finds

Ontario drivers pay some of the highest insurance premiums in Canada and no one wants to get in an accident to make them go even higher.

It’s why more people say they'd be willing to make a cash settlement following a minor accident to avoid involving insurance companies.

When it's a serious crash you need to call the police and inform your insurance company, but a survey by Ratesdot.ca found in a minor accident 42 per cent would consider a cash settlement.

Thirty-four per cent said they had exchanged amounts totaling $1,000 or more and 12 per cent had exchanged more than $2,000 following an accident.

“You do have a duty to notify your insurance company in the event you get into an accident within seven days, or if you're not physically able to as soon as possible after that," said Tanisha Kishan, insurance expert with RatesDot.ca.

The Insurance Bureau of Canada said there are good reasons to report minor accidents and adds if you didn't do anything wrong there is no reason you should accept a cash offer.

"The only person that wants to settle outside of insurance is the at fault driver," said Anne Marie Thomas, director of consumer and industry relations with the Insurance Bureau of Canada (IBC).

IBC said even though something may appear to be minor damage like a small dent in a bumper it could be a lot worse.

"Sometimes it's not until you are doing the work that they find out just how much damage is done," said Thomas.

Drivers are often reluctant to tell their insurance provider about minor accidents, but an insurance company can’t increase insurance premiums if the collision happened on or after June 1, 2016 and there were no injuries and damage to each vehicle that is less than $2,000, if no one involved submitted an insurance claim for payment and if the at-fault driver pays for all the damage.

If you do decide to pay a cash settlement you may want to pay the repair shop directly.

“We don't usually say it's best guidance for taking a cash settlement, it's probably more appropriate to pay the auto body shop directly, collect receipt for proof of payment, just in case you require that as well,” said Kishan.

Anyone considering a cash settlement should still get the other driver's information, insurance details and take photos and remember you don't have to agree to a cash deal, so if you’re in doubt, call your insurance company.

You may not want to file a claim if you're the only one in an accident and you caused the damage yourself. If it's something minor like a scrape or a small dent it may make more sense to pay for the repair out of your own pocket.