Got into a small car accident, other driver wants to settle privately, should I?

I've been in a similar spot. My advice: take photos of both cars, the plates, and the scene immediately, exchange IC and phone numbers, then lodge a police report regardless. That report is your protection if he changes his story later. For RM800 damage, decide whether claiming is worth losing your NCD, sometimes paying out of pocket is cheaper overall, but do it properly. If you pay him directly, insist on a written 'full and final settlement' acknowledgement signed by both of you, that closes the door on future claims. Never hand over cash with just a verbal 'okay settle'. For peace of mind on the legal side, a quick chat with a lawyer or your insurer's hotline is worth it.

From my experience, always make a police report within 24 hours for any accident, even minor, it's required in Malaysia and it protects you legally. Private cash settlement feels convenient but it's risky exactly as you fear, some people take the cash then still lodge a claim or come back for 'injury'. If you must settle privately, get a signed and dated letter stating full and final settlement, both ICs, and photos of the damage, ideally with a witness. But honestly, weigh the RM800 against your No-Claim Discount loss if you claim insurance. For anything with potential injury or bigger damage, make the report and let insurance handle it. If unsure of your liability, ask a lawyer, first consult is often free.