[Venti de Milo]

I have a situation here:

My friend doesn't have car insurance and his license is currently under suspension, and he hits another car...now, he says he needs to pay the victim (whose car got hit) few thousands of dollars. He can't call the police, because he's considered driving "illegally". The victim wants the $$ immediately.

Well, my friend wants to borrow money from me. I'm not sure if I believe him.

Does his story make sense at all? Can the victim settle this outside of the insurance company, legally? Why didn't the victim call the police?

I don't drive, so I really don't know much in this field....

 

[Canuck]

Can we all first agree that your friend is a goof for:
a) driving without insurance, and
b) driving with a suspended license

And following that logic, since your friend has a suspended license I'm thinking his goofiness streak goes back some ways.

 

[wonderboy416]

Driving without insurance = major conviction, $5000 fine (will most likely be reduced but the major conviction will stick)

Driving with a suspended license = under absolute liability if that vehicle had insurance it will respond to the third party claims but will have the right to subrogate against the driver who had a suspended license. This also = another major he will be charged with from the coppers

Basically, I would not help him as he should NOT be on our roads under any circumstances and if the third party had half a brain he'd report this to the coppers and his insurance ASAP, Ontario policies have a mandatory coverage known as uninsured motorist, meaning insurance or not, his vehicle will be repaired. You'd be almost stupid to accept a cash settlement from someone under these circumstances.

 

[Venti de Milo]

Well, that's why I wanna know if his story's even making any sense... I personally think he just made up this story to ask me for $$

 

[Hydrogen]

Considering that what he is doing (or wanting to do) is illegal, it would not be wise to lend him money, given that situation.

It is a personal responsibility to learn the laws pertaining to driving, and to obey them. Driving is a privilege and not an absolute right. Your frind should know better.

 

[EnviroTO]

A lot of people settle without getting the insurance company involved in order to keep their premiums from rising. Settling without making an insurance claim is completely legal. Everything your friend is up to is completely illegal though.

 

[wonderboy416]

A lot of people settle without getting the insurance company involved in order to keep their premiums from rising. Settling without making an insurance claim is completely legal. Everything your friend is up to is completely illegal though.

umm... Your insurance policy is a binding contract, in that contract you must report all accidents to your insurance company (try reading the OAP1 included with every new policy). I would not be advising people it is ok to settle outside of your insurance company for 2 reasons.

1) You're telling them to violate the terms of a contract in which they agreed to
2) One party is always being screwed unless it was a 50/50 case. If you're not at-fault, no matter what, DO NOT ACCEPT A SETTLEMENT. It's just beyond stupid to do so. You're always covered when not at-fault, the work to your vehicle will be guaranteed and you'll get a rental.