Can Both Parties in a Car Accident Reach a Private Mutual Settlement despite Having Insurance?

Hanafi Fiqh

Answered by Mawlana Ilyas Patel


The scenario is that someone gets into a fender bender with their car, and both parties don’t want to file a claim and go through insurance as they don’t want their premiums to increase. I always thought that was fine, but I recently learned that with my insurance company, even if one does not file a claim, they still have to report the incident to their insurance company.

What does one do if his car got in a fender bender recently and the matter was privately handled (repairs have already been paid for)?

Does he have to find that person to report it to insurance which will likely be upsetting to the other person as may be just reporting it could have an impact on the premiums? I am feeling very stressed about all this.


In the Name of Allah, the Most Merciful and Compassionate

I pray you are well.

No, one does not have to search the person with whom one has done a private mutual settlement after a car accident, despite the law stating otherwise. You can think about doing it in the future. May Allah (Most High) protect you and all.

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I pray this helps with your question.
[Mawlana] Ilyas Patel
Checked and Approved by Shaykh Faraz Rabbani

Mawlana Ilyas Patel is a traditionally-trained scholar who has studied in the UK, India, Pakistan, Syria, Jordan, and Turkey. He started his early education in the UK. He went on to complete the hifz of the Quran in India, then enrolled in an Islamic seminary in the UK, where he studied the secular and ‘Aalimiyya sciences. He then traveled to Karachi, Pakistan. He has been an Imam in Rep of Ireland for several years. He has taught hifz of the Quran, Tajwid, Fiqh, and many other Islamic sciences to children and adults onsite and online extensively in the UK and Ireland. He taught at a local Islamic seminary for 12 years in the UK, where he was a librarian and a teacher of Islamic sciences. He currently resides in the UK with his wife. His interest is a love of books and gardening.