How do I protect myself in this situation, and get a receipt for my payment?

Question

Just over 3 weeks ago I bumped into someone's car on accident. There was no apparent damage to their car, but I insisted we exchange details in case. The person refused and said it was all right.

Much to my dismay, I was called several days later by the police station - damage was discovered. The person and I decided I would pay the repair cost as it is cheaper than insurance excess.

After depositing the money and providing a screenshot, I have heard nothing from the person, despite them saying they would send a receipt once the car is repaired. We have a text message history.

I sent a follow up message 2 weeks after with no reply, and another message close to a month. I rang up yesterday afternoon, and got through - they say they have not been receiving my messages, and would send the receipt once they got home.

No receipt was sent. It's possible they are away for the weekend, so I will wait until after to follow up. What should I do to cover myself and find out my money was spent on what it was meant for? I don't want to harass the person but I'd like evidence of my money being used for what we agreed.

Answer 1

There is no obligation to use money for repairs, the receiver can always decide to keep using his dented car and pocket the money. That is also true for insurance payments, although insurances don't like it and try to make it hard.

For you that means you cannot request proof of repair; you can only request a signed paper that your payment is sufficient and all damages are covered.
If you doubt the amount is correct, you can also force them to get an estimate from a neutral third party (which isn't free and goes on your nickel, in addition), and then pay only that amount.

Answer 2

A receipt is insufficient to protect yourself. What you should have done before paying is to get a signed contract stating that the other party agrees to release you from all liability arising from the accident and to indemnify you from any such claims in exchange for a specified sum of money.

You seem to be concerned that the money wasn't used to repair the car, but it's not important what he uses the money for. You just want a written contract releasing you from liability so he can't come back and sue you for damages due to the accident. Without a liability release, he can still sue for dimished value even if he fixed the car.

That said, it's very unlikely that the other party will sign such a contract now since he already has the money. You'll just have to hope that he doesn't sue for damages.